New data highlights growing worries about the Albanese Government's spending, as public sector wage costs hit a record $250 billion. Government expenditure on public service salaries has surged sharply, with taxpayers now funding this historic wage bill amid fears it may worsen inflation.
"Wages paid to public sector employees totalled $249.5 billion in the 2024–25 financial year across all levels of government," said Sean Crick, ABS head of labour statistics.
"This was an increase of 7.6 per cent, slightly less than the 8.0 per cent annual growth seen in 2023–24."
Crick attributed the rise to new enterprise agreements and a growing workforce, explaining: "The rise in the public sector wage bill reflected a combination of underlying wage growth driven by new enterprise agreements and growth in employment."
During a heated Question Time, the Opposition blamed Labor's spending for making it difficult for the Reserve Bank to reduce interest rates, warning that excessive government expenditure was keeping inflation persistently high.
Author’s summary: The record $250 billion wage bill driven by new agreements and workforce growth has intensified inflation fears amid mounting political criticism of government spending.