Annual wages have grown above three per cent for 14 consecutive quarters, according to new data released by the Australian Bureau of Statistics.
The wage price index rose 0.8 per cent in the December quarter, taking annual growth to 3.4 per cent.
Treasurer Jim Chalmers said the result marked “the longest streak of wages growth above three per cent in more than a decade and a half.”
He said there “was not one quarter in the 35 quarters of the former Government when nominal wages grew above three per cent.”
Despite the rise in nominal wages, annual real wages declined over the year. The ABS data shows that real wages, measured as the difference between the quarterly wage price index and the quarterly consumer price index, fell 0.2 per cent through the year to the December quarter 2025.
“With inflation higher than we would like, partly due to temporary factors, annual real wages, as measured by the difference in the quarterly wage price index and quarterly consumer price index, fell 0.2 per cent through the year to the December quarter 2025,” Dr Chalmers said.
He acknowledged the outcome fell short of expectations. “While we would have liked to have seen real wage growth, today’s result is better than what we inherited.”
“When we came to Government, real wages were going backwards 3.5 per cent and fell for the five quarters leading up to when we were elected,” he said.
Dr Chalmers described the broader trend as positive, stating: “The overwhelming story of this Government has been one of real wage growth.”
“With inflation higher than we would like, partly due to temporary factors, annual real wages, as measured by the difference in the quarterly wage price index and quarterly consumer price index, fell 0.2 per cent through the year to the December quarter 2025″
He noted that annual real wages had grown for two consecutive years prior to the latest result, calling it “the longest period of consecutive growth in more than a decade.”
“Our economic plan is all about helping Australians earn more, keep more of what they earn and retire with more and these figures show our efforts are making a meaningful difference,” he said.
“Workers are earning much higher nominal wages now than they were a few years ago, and that’s thanks to the progress Australians have made together on the economy.”
Dr Chalmers said lifting wages remained central to the Government’s approach to cost of living pressures. “One of the best ways to help people with the cost of living is to boost wages for workers, and that’s been a big focus for the Albanese Government.”
He said wage growth had been weak under the previous administration. “Wage growth was anaemic and real wages were going backwards when we came to office after the Liberals’ deliberate policy of wage stagnation and suppression but we’ve turned that around.”
“The strong and sustainable wages growth we’ve seen in the past few years is a direct result of Labor’s policies,” he said.
Dr Chalmers said the Government was acting to “boost wages, close the gender pay gap, deliver workplace relations reforms and secure pay rises for some of the lowest paid workers in our community.”
He pointed to broader economic indicators, saying: “Under Labor, economic growth is picking up, business investment is strengthening, about 1.2 million jobs have been created, unemployment is low, participation is at near record highs, debt is down and the budget is stronger but we know there are big challenges too.”
“We’ve made a lot of progress together on the economy but the job’s not done because inflation is too high and people are still under pressure,” he said.
“That’s why we continue to address inflation and roll out responsible cost-of-living relief at the same time as we modernise Australia’s economy.”
Dr Chalmers said the Government’s “three big economic priorities for the Albanese Government this year and in the Budget are addressing inflation, productivity and global uncertainty, and sustainable wages growth is a part of that.”
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