Treasury has no idea on wages

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It is clear from last night’s federal budget that the Australian Treasury has no idea on wages.

For years we watched the Treasury make bullish predictions on wage growth, always forecasting a marked pick-up in wages over the forward estimates period:

Budget wage blunders

Years of Budget wage blunders.

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About the author
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.