APS Wage Claims Get Boost as Inflation Surges Past Government Target

The Australian Public Service (APS) wage claims have received a boost after the Consumer Price Index (CPI) rose to 4.0% in August, up from 3.5% in July.

This increase effectively nullifies the government's efforts to restrain APS wage claims below 4%. The Albanese government had been pushing for offers of as little as a 3% rise to some Australian Defence Force personnel.

The Reserve Bank of Australia’s official cash rate also rose by 25 basis points to 4.6%, further complicating the Finance Minister Katy Gallagher's task of balancing wage restraint with a fair pay deal for federal public servants.