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Australia is set to get a pay rise, but at what cost?

Will the unemployment rate continuing to fall around the country, it’s looking like Australia will get a pay rise.

Over the past 12 months, the average pay rise in Australia was 2%, around 1.9% for the private sector, and 2.4% for the public sector.

Ross Greenwood speaks with Senior Economist and Deloitte Access Economics Partner David Rumbens.

“It’s real, but it’s a slow-moving phenomenon.

“A lot of people haven’t had a wage rise for some time, [but] the conditions are starting to turn.

“There is not going to be a dramatic shift this year, this is over the next couple of years.”

Mr Rumbens warns the pay rise will mean individuals won’t be receiving tax cuts.

“We’re still running a pretty significant budget deficit.

“If we add in further tax cuts onto that, then we’re still further away from that day where we start to pay that off.”

Listen to the full interview below