Real Incomes Rise for Third Straight Quarter as Living Standards Recover

Treasurer highlights 1.7% annual increase marks turnaround from previous decline

Australian households experienced their third consecutive quarter of real income growth, with per capita earnings rising 1.1% in the March period as the government's economic policies begin delivering tangible improvements to living standards.

Treasurer Jim Chalmers Wednesday highlighted the income recovery as a key achievement, noting the dramatic reversal from the 1.7% annual decline inherited when Labor took office to current annual growth of 1.7%.

"Real incomes per capita and living standards, we saw solid growth once again," Chalmers told reporters at Parliament House. "Remember, real incomes were falling 1.7% when we came to office, and they're now up 1.7% through the year."

The income improvements came despite overall economic growth of just 0.2% in the March quarter, with annual expansion reaching 1.3%.

Income Growth Outpaces International Peers

Chalmers emphasized Australia's income performance compared favorably with developed nations, particularly during the second half of 2024.

"In the second half of last year, real incomes in Australia grew faster than the OECD average and almost twice the G7 average," he said.

The income growth stems from a combination of moderating inflation, steady wage increases, recent tax cuts, and declining interest rates - all central elements of the government's economic strategy.

Workers' share of national income rose to almost 54%, up from less than 50% when the current government assumed office, reflecting the improved distribution of economic gains.

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