Category Archives: Australian economy

Government claims of 7% real wage rise since in office disputed – as it happened

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Katy Gallagher disputes prime minister’s claims on real wage growth; nation records at least 53 Covid deaths. This blog is now closed

National party deputy leader, David Littleproud was feeling upbeat this morning while speaking to ABC Breakfast TV:

We have achieved a lot together, in fact we have done more than any other nation in the world if you look at an economic and health front. We should be proud but we need to shift gears and make sure we look after those cost of living inflation pressures and who is best to handle that and to drive the economy and to guide the economy. I think that’s where the Australian people are looking at it when the opposition won’t tell them how much of their money they’re going to spend, they’re taking them as mugs. We got to be open and honest and transparent.

We think an upward surprise of 1% q/q growth in [today’s] WPI could be enough to get the RBA over the line for 40 basis points, though if it comes in at our forecast of 0.8% q/q that prospect will recede.

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Real incomes shrink as wages growth of 0.7% in March quarter falls behind inflation

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Labor says figures released by the ABS show gap between wage growth and cost of living increases in Australia is now the largest in more than two decades

Australian wage growth barely budged in the March quarter, with salaries increasing at less than half the headline inflation rate, stoking concerns pay packets continue to shrink in real terms.

During the first three months of 2022, the seasonally adjusted wage price index (WPI) rose 0.7% from the December quarter to be 2.4% higher than a year earlier. Economists had tipped a quarterly and yearly rise of 0.7-0.8% and 2.5%, respectively.

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Scott Morrison tells A Current Affair ‘jobkeeper saved the country’ – as it happened

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Prime minister tells Tracy Grimshaw ‘I could have been more sensitive at times’; nation records 66 Covid deaths. This blog is now closed

Ita Buttrose:

We will retain an internal system of editorial complaint handling. We accept the recommendations, but we have amended one already. The review recommends that the ombudsman should report directly to the board. We should report to the board and the managing director, but the directors felt that this would simply be continuing the system we already have and we wanted a different more independent approach. So the ombudsman will report directly to the board and the process will be separate from editorial management.

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Australian federal election 2022 live: Albanese calls Coalition housing scheme ‘an attack on future generations’; AEC finds signs in breach

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Anthony Albanese labels Coalition housing scheme ‘an attack on future savings’; AEC says Advance Australia ‘Greens’ signs in breach of electoral act; home price increases will be ‘marginal’ under new plan, Scott Morrison says; PM says Labor was informed about Aukus when they ‘needed to be’; NSW records four Covid deaths. Follow all the day’s news live

Labor campaign spokesperson Jason Clare has a new line.

He told ABC TV:

The next week is really important. Australians have a big choice to make this weekend. It is a choice between a better future under Labor and more Scott Morrison.

As Australians think about this, they would be thinking “Do you want to wake up on Sunday morning and roll over and see Scott Morrison?”

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Adam Bandt outlines seven demands for Labor in Greens’ balance-of-power wishlist

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Party confident of winning at least one seat in Brisbane, where it will launch its campaign on Monday

The Greens leader, Adam Bandt, will release a $173bn balance-of-power wishlist at the party’s campaign launch in Brisbane on Monday night, outlining seven key concessions it wants from Labor in the event of a minority government.

The Labor leader, Anthony Albanese, has ruled out doing any deals with the Greens to form government, while Bandt has said the party will not support the Liberals under any circumstance.

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Coalition minister concedes plan to allow first homebuyers to access super will push up house prices

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Allowing access to up to $50,000 of retirement savings ‘like throwing petrol on a bonfire’, industry super group warns

The Coalition has conceded its plan to allow first homebuyers access to superannuation will push up prices, as industry super and progressive thinktanks warned it could add tens of thousands to the cost of a home.

The policy, unveiled at the Coalition launch on Sunday, to allow first homebuyers access to up to $50,000 of retirement savings has prompted warnings that house prices in Sydney could increase by as much as $134,000.

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Morrison’s objection to lifting wages in line with inflation puts spotlight on pensions linked to CPI

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Prime minister says such a move would be ‘incredibly reckless’ but payments such as pensions are already tied to cost-of-living changes

Economists and advocacy groups have seized on the Morrison government’s objection to lifting minimum wages by the inflation rate, noting benefits such as pensions are tied to how consumer prices change.

Prime minister Scott Morrison blasted comments by Labor leader Anthony Albanese on Wednesday that he would “absolutely” support wages keeping pace with prices. That call was “incredibly reckless”, Morrison said, adding that wage increases of 5%-plus were “like throwing fuel on the fire of rising interest rates and rising costs of living”.

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Australia election 2022 live news: former high commissioner to Solomon Islands attempts to confront Morrison on campaign trail

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Simon Birmingham says Anthony Albanese ‘making it up as he goes along’ on wage rises; Peter Dutton takes swipe at Clive Palmer over seat preferences; at least 53 Covid deaths recorded. Follow all the day’s news

Josh Frydenberg told ABC TV he believed Scott Morrison won last night’s debate.

He also believes moderate Liberals have done enough to influence the party from the inside:

Let me take those issues individually. Firstly, on climate, I was a strong advocate, so was Dave Sharma, Katie Allen, Trent Zimmerman, Tim Wilson and many others about getting Australia to net zero emissions by 2050.

We argued inside the tent for that commitment and it’s in Australia’s best interest that it’s a bipartisan commitment. It’s Australia’s best interest that we have a long-term economic plan to get there.

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‘Over-the-top alarmism’: economists dismiss concerns wage rises cause inflation

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Australia’s minimum wage is shrinking compared to median pay, bucking global trends

The recent spurt in inflation has little do with workers being paid more, economists say, warning the claim that wage increases could set off inflation is “over-the-top alarmism”.

Debate over how much the lowest-paid workers should receive has flared during the election campaign after the ACTU this week raised its minimum wage claim to the Fair Work Commission to 5.5% from an earlier goal of 5%, after March-quarter consumer prices spiked.

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Industry warns ’small business can’t afford it’ after Albanese backs 5.1% minimum wage rise

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Employers argue that excessive minimum pay increases will fuel inflation as unions call for ‘incredibly reasonable’ boost to meet cost-of-living pressures

Employers have warned against “unaffordable” wage increases after Anthony Albanese backed a 5.1% minimum wage rise to keep up with inflation.

Despite the warnings, the Australian Industry Group has raised its own submission to the Fair Work Commission from 2% to 2.5%, while the Australian Chamber of Commerce and Industry has asked for low-paid workers to get a 3% rise.

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Labor will announce new measures to close gender pay gap in election campaign’s final fortnight

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Tanya Plibersek says party would look at introducing superannnuation on paid parental leave ‘when we can afford to’

Labor will promise a new measure to close the gender pay gap and attack the government for promoting “the importance of low paid work” in the campaign’s final fortnight.

On Sunday the shadow minister for women, Tanya Plibersek, confirmed another policy push on gender pay inequity, while the shadow industrial relations minister, Tony Burke, signalled a plan to weaponise the Coalition’s submission to the minimum wage review.

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Morrison pledges $20m for tourism; Shorten tests positive as 44 Covid deaths recorded – as it happened

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Foreign minister meets Solomon Islands counterpart in Brisbane; poll shows independent Sophie Scamps has real prospect of taking seat from Liberal Jason Falinski; Bill Shorten tests positive for Covid; NSW records 19 Covid deaths; Victoria nine, Queensland five, Tasmania two, NT one, SA two and WA six. This blog is now closed

Coalition and Labor have so far pledged billions for local projects. But not all sides of the electoral fence are reaping the benefits, write Elias Visontay and Nick Evershed.

Last night Marise Payne met with the foreign minister of Solomon Islands, Jeremiah Manele, in Brisbane. The pair discussed the rising tensions between the two countries.

Australia has been consistent and clear in stating our respect for Solomon Islands’ sovereign decision-making, however we have reiterated our deep concerns about the security agreement with China, including the lack of transparency. I again reinforced this in my meeting tonight. We agreed that Australia remains Solomon Islands’ security partner of choice.

I again welcomed Prime Minister Sogavare’s assurance that Solomon Islands will not be used for a foreign military base.

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Independents slam ‘dirty tactic’, reporting fake campaign signs; 30 Covid deaths – as it happened

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Independents report ‘misleading and unauthorised’ campaign signs; Scott Morrison won’t say if he will resign in case of hung parliament; Anthony Albanese backs royal commission into the pandemic; trans rights ‘debate’ ‘hugely regrettable’, Liberal senator says; at least 30 Covid deaths recorded. This blog is now closed

How does Andrew Bragg think Dave Sharma and Trent Zimmerman are feeling, given their seats are under threat:

As I say, I don’t agree with the analysis. I think the Liberal party has been a strong party of government because we have been able to represent a whole lot of different people across our country and we are doing that right now through things like strong climate policies, but also a social liberal agenda which protects minority groups such as the LGBTI community which I addressed last night at the Equality Forum.

Well, people are entitled to their opinions. I don’t always agree with everything you say and I don’t always agree with what my colleagues say. We are entitled to have our own views and cross the floor and make our own statements known where it is appropriate.

I mean, I’m not a commentator on these things. People are entitled to their own views. I think I have been very clear we have a strong voice for people in the cities and people should absolutely vote for Dave Sharma and Trent because they’ve done a great job in standing up for their communities.

I don’t agree with Mr Turnbull’s analysis. We have done important work for people who live in the inner cities on things like achieving the net zero 2050 commitment, and also developed economic policies which favour the inner city on things like fintech and cryptocurrency and we have made important commitments, as I spoke about last night to the equality forum, on HIV, listing Prep on the PBS.

The idea we are a party only for the bush or for the bushes is not true, or for the burbs is not true. We govern for all Australians.

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Federal election 2022 live updates: O’Connor says PM ‘doesn’t get soft power’ as Dutton defends Solomons response

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Defence debate kicks off at National Press Club; Labor accuses Coalition of ‘cynical and stupid’ lack of attention to Indonesia relationship; ‘significantly poorer health outcomes’ for people living outside cities, NSW health inquiry finds; Anthony Albanese bungles NDIS question; Scott Morrison says he doesn’t have a ‘magic pen’ for wages; NSW records 21 Covid deaths, Victoria records 14, Queensland records 11. Follow all the day’s news live

In that exchange, Stuart Robert said he had been acting as the education minister for a year. But Alan Tudge didn’t announce he was stepping down until 2 December last year.

Perhaps the last five months have just felt like a year for Robert.

I’m the acting education minister, and have been for almost 12 months. So I’ve got full authority in terms of running the education portfolio, as well as skills and workplace and the other things that I do.

I suggest in his electorate. I don’t know where he is. I tend not to keep track of my colleagues’ whereabouts.

I’m not across those issues so, unfortunately, I can’t give you any degree of answer. They’re issues that are dealt with by the Department of Finance, very much at arm’s length from anyone. Certainly arm’s length from me. My responsibility as required by the prime minister as the acting education minister and the acting minister for youth, is to use all of those resourcing and requirement and continue to act in the best interests of the people of Australia, which I’ve been doing with my state and territory colleagues. That’s why just before the election, of course, we signed off on the national curriculum, which was a landmark piece of work that we did together as education ministers right across the country.

Again, Lisa, I’m just not across those issues in any detail at all.

I’m still not across what the details are. I’m not across what the legalities are.

Again, I’m not going to comment on things that I’m just not across. I don’t think that the Australian people expect the acting education minister to wade into every issue, especially issues that I’m simply not briefed on. My brief is to ensure that we can get the best possible curriculum and the best possible teacher education quality out of our universities, and that’s exactly what we’re doing.

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Ruston dismisses suggestion Liberal party has ‘lost its way’; Hunter candidates square off – as it happened

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Jim Chalmers accuses Josh Frydenberg of lying about tax as treasurer and shadow treasurer pressed on NDIS in debate; Coalition ‘oblivious’ to pressures facing working families, Albanese says; border force won’t confirm reports of asylum seekers moved to Christmas Island; at least 56 Covid deaths recorded. This blog is now closed

In a move designed to hold on to what is known as the “grey vote”, the government has announced a two-year freeze on deeming rates, in response to the interest rate rise.

That means pensioners with cash deposits which will increase with the rate rise (interest rates on bank accounts go up too) won’t have to worry about hitting the cap of how much they can earn before their pension is impacted.

We have always said where there are good ideas we will support them. We sought to be constructive during the pandemic and did support many of the measures and, you know, looking at this decision today, we have said, yes, this is a good idea and we will.

He already has, we went to a religious service at a local synagogue and no doubt he has many competing requests on his ...

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Election 2022 live updates: RBA chief warns interest rates could hit 2.5% as Labor seizes on ‘cost of living crisis’

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Scott Morrison defends economic ‘shield’ after RBA lifts cash rate target from historic low; Philip Lowe says more interest rate rises to come; Jim Chalmers says central bank decision ‘a very serious development’; nation records 41 Covid deaths. Follow the latest updates live

Scott Morrison doesn’t get sick of the “silly” photo ops [silly photo opportunities being how the question was framed], he tells Melbourne radio’s Neil Mitchell, because he “doesn’t see them that way”.

He then gives a hero-gram to tradies.

I don’t fit in those ways, what I see is [being] out and about and doing what Australians do every day.

... What I enjoy doing is standing there with an apprentice who shows me what they’re learning, and then I’d have a go at it.

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Victoria’s treasurer delivers health-focused budget and promises return to surplus

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Tim Pallas announces new hospitals, clearing of a surgery backlog and hiring of thousands of healthcare workers

The Victorian government will spend $12bn to repair its Covid-battered health system with the treasurer, Tim Pallas, confident that the worst of the pandemic is behind the state and a return to surplus will happen in the near future.

Pallas’s eighth budget, handed down on Tuesday, includes $2.9bn worth of new health infrastructure. This includes $900m to build a hospital in Melton, in Melbourne’s west, which will include a 24-hour emergency department and an intensive care unit, along with maternity and mental health services.

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Reserve Bank interest rates: RBA lifts official cash rate to 0.35% in first rise since 2010

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Central bank raises rate by 0.25 percentage points in a move that will stoke cost-of-living debate ahead of federal election

The Reserve Bank of Australia has lifted its official cash rate for the first time in more than 11 years in its first intervention in a federal election since John Howard lost office in late 2007.

The central bank lifted its cash rate target from the record low 0.1% it had hovered at since November 2020, during the depths of the Covid pandemic. It was raised more than expected to 0.35%, and the RBA signalled more rises to come.

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In an election budget, Victorian treasurer Tim Pallas is fighting a war on many fronts

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Analysis: To fight his way back to surplus, Pallas relies on economic growth rather than spending cuts or increased taxes

Inflation, a Covid comeback, Russia’s invasion of Ukraine and Josh Frydenberg “short-changing” his home state – these are the major battles Victoria’s treasurer, Tim Pallas, faces as he plots a narrow course towards a small budget surplus within four years’ time.

To fight his way back to surplus, Pallas is relying on economic growth – fuelled by the state’s speedy bounceback from a Covid-19 recession and a full-to-overflowing $21bn-a-year infrastructure pipeline, which itself contains significant potential pitfalls – rather than cutting spending or increasing taxes.

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ABC misses out on final leaders’ debate; key independents back call for robodebt inquiry – as it happened

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Channel Seven to host final debate of election campaign; crossbenchers back call for royal commission into robodebt scandal; Scott Morrison focuses on cost of living concerns; Anthony Albanese marches for May Day in Brisbane; Sally McManus would support wage increase for public sector workers; 13 Covid deaths recorded across the nation. This blog is now closed

Labor is still on the campaign sell for its first homeowner policy.

Jason Clare faced questions ranging from, “Is this too small to have an impact?” to, “Won’t it drive up house prices?”

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