Monday’s September quarter Business Indicators release from the ABS, which feeds into today’s national accounts, showed that wages & salaries remain wildly divergent from business profits.
As shown in the next chart, real business gross operating profits continued to boom in the year to September:
Whereas, there remained a huge gulf between wages & salaries:
In the year to September 2019, real per capita business profits rose by 5.4%, whereas salaries & wages rose by 1.4%:
The recent surge in real business gross operating profits was driven by the rebound in commodity prices and the terms-of-trade:
Sadly, the transmission mechanism from mining profits to wages is broken because investment has stalled.