Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Hansard source

I'm surprised to get a question from the member for Chifley about wages when real wages went down in Labor's last year in office. Wages are forecast to grow 1¼ per cent through the year to the June quarter. But, as I said to the House just two weeks ago, the CPI is expected to be 3½ per cent in the June quarter for 2021, the reason being that, in the previous year, we saw the steepest quarterly fall in the CPI since 1931 off the back of particular measures that were introduced in the middle of COVID, like free child care. We saw cheaper rents, and we also saw cheaper petrol. That was the reason why we saw inflation go negative in that year, and that is why we saw those results with respect to real wages. But we will see wages increase to 2¾ per cent over the forecast horizon period of 2024-25.

What we are seeking to do is allow Australians to keep more of their hard earned money. With our tax relief that we have put in the budget, more than 10 million Australians will get tax relief. We will drive policies that will see more Australians in work, that will help bring the unemployment rate lower and that will help drive real wages up. We are helping Australians get more of their hard earned money with the tax relief that we on this side of the House support, but the others on the other side of the House want a bet each way.

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