Treasury boss to front senators
Treasury head John Fraser will give his department’s latest view of the economic outlook when he faces senators at instagram viewer private a hearing on Wednesday.
In particular, the Treasury secretary is likely to be pressed on the outlook for wages growth given that it remains close to its lowest level in at least two decades.
Annual wage growth, as expressed by the wage price index released last week, ticked up to 2.1 per cent but only keeping just ahead of inflation.
Treasurer Scott Morrison told parliament on Monday he was encouraged by the modest rise but conceded “there is more work to be done”.
In its annual appraisal of Australia last week, the International Monetary Fund forecast wage growth remaining below three per cent out to 2023.
This is below 3.5 per cent projected by Treasury to assist a return to a budget surplus by mid-2021 through increased tax revenue, although employment growth has been a lot more robust than it had previously predicted.
Senators are again likely to quiz Mr Fraser over the government’s 10-year business tax reduction plan which looks set to be blocked in the upper house.