Last month, CBA released analysis derived from internal data showing that average household disposable incomes have grown strongly despite weak wage and salary growth, courtesy of enormous emergency income support and early superannuation release:
Annual growth in wages and salaries paid into CBA bank accounts has accelerated over the past month (latest w/e 20 November). The positive impact of a lift in employment and hours worked coupled with personal income tax cuts has more than offset the reduction in JobKeeper payments…
Overall growth in wages & salaries paid plus government payments has been tracking around 10%/yr over Q4 20 –still well above pre-COVID levels. Overall growth in household income over 2020 will be very strong.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
