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Terry McCrann has once again warned of a wage-price spiral following the Fair Work Commission’s increase in award wages by 5.75%, which will impact around one quarter of Australian workers.
McCrann argues that the cost will be much higher for employers when the 0.5% increase in the superannuation levy is taken into account.
The wage decision may, in turn, put upward pressure on wages across the private and public sectors, which could derail the Reserve Bank’s push to restore inflation to its target range of 2-3%, according to McCrann.
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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.
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