Frydenberg The Carpetbagger’s Pitch
Fairly typical of government’s successful pre-MYEFO marketing was: “The update will also forecast an associated uptick in wages growth of about 11 per cent between now and 2024-25, which is up from the 9 per cent forecast in the May budget, and worth about $10,000 to those currently earning $90,000 a year.” Sounds good, doesn’t it? But it’s the old trick of adding up a number of years and ignoring inflation and taxation, never mind interaction with the transfer system. The document itself forecast “wages growth to outstrip inflation over the four-year forward estimates”. But that was only for pre-tax wages. After-tax is still going backwards over that period.