Australian Real Wage Values Decline Amid Strong Inflation

Taxpayer-backed public sector wage growth continues to outpace the private sector.

Treasurer Jim Chalmers speaks at Parliament House in Canberra, Australia, on Feb. 9, 2026. Hilary Wardhaugh/Getty Images

Australians’ pay packets grew again at the end of 2025, but new data shows many workers are still worse off due to high inflation.

According to the Australian Bureau of Statistics (ABS), the Wage Price Index (WPI) rose 0.8 percent in the December 2025 quarter, taking annual wage growth to 3.4 percent.