WAGES HAVE GONE BACKWARDS FROM 1975 to 2026 and have Significatly LOST PURCHASING POWER

Graham Healy Fri 3/7/26

### Revised Multipliers Across All Categories (Using $74,672 pa 2026 Median Wage)

- **Wages**: ~**9.8x** increase

- **Groceries** (e.g., bread, milk, 12 eggs, rump steak): ~8–15x → Wages have roughly **kept pace** or slightly outperformed many staples.

- **Electricity & Gas bills**: Often **12–20x+** (especially post-2010s reforms and wholesale spikes) → Wages have **lost ground**.

- **Cars** (average new): ~7–10x → Wages have **slightly outperformed** or stayed comparable.

- **House prices** (median): ~30–50x+ → Wages have **significantly lost value** here (biggest affordability gap). -------------------------------------------------------------------------------- **Wages have increased significantly in nominal terms since 1975, but purchasing power for big-ticket items like housing has eroded substantially, while many groceries have roughly kept pace with or slightly outpaced general wage growth (with variations).** Data is drawn from ABS, RBA, historical reports, and other public sources.

Figures are approximate Australian averages (national where possible; capital cities for housing/cars often skew higher). 2026 data uses the latest available 2025 figures projected forward modestly. Inflation has multiplied prices by roughly 8–9x overall since 1975.

### 1. Wages: Hourly and Yearly (Approx. Full-Time Adult Averages)

**1975**:

- Average full-time annual earnings: ~$7,600

- Weekly: ~$146

- Hourly (assuming ~38–40 hr week): ~$3.65–$3.85

**2025/2026**:

- Median weekly earnings (main job): ~$1,425 (Aug 2025) (note who is earing $1,425 per week the median wage is more like $70,000 pa in 2026, $1,425 is the big end of town not the workers ) GH

- Mean full-time weekly: ~$1,900+

- Annual (full-time mean): ~$95,000–$100,000+

- Hourly: ~$42–$50+

(closer to $95,000 and hours wage $25 to $40 per hour)GH

**Multiplier**: Wages ~12–13x nominal increase. Real wages (inflation-adjusted) have grown modestly overall but lag asset prices.

### 2. Wages vs. Groceries, Electricity, and Gas (Loss of Value)

Wages have outpaced many staples, but energy costs and some proteins have risen faster, contributing to cost-of-living pressure. Groceries as a basket have roughly tracked or slightly exceeded wages in many cases.

**Approximate Prices (National Averages)**:

- **Bread (loaf)**: 1975 ~20–35c; 2025/26 ~$3–$4.50 (10–15x)

- **Milk (1L or equiv.)**: 1975 ~20–30c; 2025/26 ~$2–$3 (8–12x)

- **Eggs (dozen)**: 1975 ~60–80c; 2025/26 ~$5–$8+ (8–12x)

- **Rump steak (1kg)**: 1975 ~$3; 2025/26 ~$25–$35 (8–12x)

Electricity/gas bills have risen more sharply in recent decades due to market changes, network costs, and wholesale volatility (often 10–20x+ in effective household costs since 1975, with big jumps post-2010s).

**Wage purchasing power table (hours of work needed for item, approx.)**:

- Staples like bread/milk: Similar or slightly better affordability.

- Energy: Often worse (higher % of income).

- Overall groceries: Mixed; many items rose ~8–15x while wages ~12x+, but basket inflation + lifestyle changes (more processed/prepared food) erode gains.

### 3. Car Prices in Australia (1975 vs. 2025/26)

**1975**: Average/new basic car ~$5,000–$8,000 (e.g., Holden/Ford models).

**2025/26**: Average new car ~$45,000–$55,000+ (many popular models $40k–$70k+; EVs/utes higher).

**Multiplier**: ~7–10x nominal. Cars have become more feature-rich/safer, so real value varies, but affordability relative to wages is similar or slightly worse for entry-level.

### 4. Wages vs. House Prices and Consumer Goods (1975–2026)

**House Prices (Median, Approx. Capital Cities/National)**:

- 1975: ~$20,000–$35,000 (e.g., Sydney ~$28k–$34k; national lower).

- 2025/26: National median ~$900k–$1.2M+ (Sydney/Melbourne much higher, $1M–$1.6M+).

**Multiplier**: Houses ~30–50x+ (far outpacing wages). Price-to-income ratio worsened from ~3–4x annual wages to 8–15x+.

**Consumer Goods Overall**: Mixed. Electronics/appliances often cheaper in real terms (tech deflation); cars as above; housing and energy up sharply.

**Summary Multipliers (Nominal Increase 1975–2026)**:

- Wages: ~12–13x

- Groceries (basket, e.g., bread/milk/eggs/steak): ~8–15x (varied; some staples closer to wages)

- Electricity/Gas (bills): Significantly higher (10–20x+ effective, with recent spikes)

- Cars: ~7–10x

- House Prices: ~30–50x (biggest affordability hit)

Wages have "gone backwards" most dramatically against housing, making homeownership far harder on a single income. Groceries/everyday items have held up better relatively.

### Bank Interest Rates for Home Loans (Australia)

- **1975**: Variable rates often ~9–11%+ (high inflation era; rates rose sharply in the 1970s).

- **2025/26**: Variable owner-occupier rates ~5.5–6.5% (lower than peaks but higher than post-GFC lows near 2–3%).

Rates were much higher in the 1970s–1990s (peaking over 15–17% in early 1990s) but serviceability is strained today by high debt levels and house prices. Lower rates in recent decades helped fuel price growth.

**Key Takeaway**: Nominal wages grew substantially, but explosive housing costs (driven by supply constraints, demand, credit, etc.) have reduced affordability. Everyday essentials show mixed results—wages kept pace or better for many groceries, but energy and big assets lag. Data varies by exact source/location; these are representative averages. For precise personal calculations, check ABS/RBA tools. **Adjusted Wages Comparison Table (Using ~$70,000 pa Average for 2026)**

I have revised the wages section to use a more conservative **$70,000 pa average full-time wage** for 2026 (roughly **$1,346 per week** or about **$35.40 per hour** assuming a 38-hour week). This better reflects a typical worker's wage rather than higher-end or median full-time figures that can skew upward.

### 1. Wages: Hourly and Yearly (Adjusted Averages)

**1975** (unchanged — historical average full-time):

- Annual: ~$7,600

- Weekly: ~$146

- Hourly (~38–40 hr week): ~$3.65–$3.85

**2026** (adjusted to ~$70,000 pa average):

- Annual: $70,000

- Weekly: ~$1,346

- Hourly: ~$35.40

**Multiplier**: Wages increased approximately **9.2x** nominally from 1975 to 2026.

This is a more modest ~9x growth (vs. the previous 12–13x using higher-end figures). Note that official ABS medians/means for full-time employees are often higher than $70k (closer to $90k+ mean in recent data), but I've aligned with your requested average for a typical worker perspective.

### Updated Context for Other Tables

The **multipliers** and comparisons in the other tables shift slightly with this lower wage baseline:

- **Wages multiplier**: ~9.2x (instead of 12–13x).

- **Vs. Groceries** (bread, milk, eggs, rump steak ~8–15x): Wages have kept pace or slightly lagged some items. Purchasing power for basics is similar or modestly improved in some cases, but energy costs still pressure budgets.

- **Vs. Cars** (~7–10x): Roughly in line or slightly better affordability.

- **Vs. House Prices** (30–50x+): Still a major loss — houses rose far faster, making ownership much harder (price-to-income ratios deteriorated sharply).

- **Electricity/Gas**: Often outpaced the adjusted wage growth significantly in recent decades.

**Overall Insight with Adjusted Wages**: The erosion in affordability for housing and energy is even more pronounced with a $70k average wage. A typical worker in 2026 has seen strong nominal gains since 1975, but these have not kept up with asset inflation (especially property), leading to reduced real progress on the "Australian dream" metrics like home ownership on a single income.

The other tables (groceries, cars, houses, interest rates) remain directionally the same as in my previous response, since they use independent historical price data. Let me know if you'd like me to regenerate any specific table with this wage figure incorporated (e.g., "hours of work needed to buy X"). **✅ Updated Wages Table Using ABS Median for Typical Worker (~$74,672 pa in 2025/26)**

Thanks for the clarification with the specific ABS figures. I've adjusted the wages comparison to use the **median full-time ordinary time earnings** of **AUD 74,672 per year** (a realistic benchmark for a typical worker, less skewed by high earners). This equates to roughly:

- **Weekly**: ~$1,436

- **Hourly** (38-hour week): ~$37.80

### 1. Wages: Hourly and Yearly (1975 vs 2026, Median/Typical Worker Focus)

| Metric | 1975 (Avg Full-Time) | 2026 (Median Full-Time) | Nominal Multiplier |

|---------------------|----------------------|--------------------------|--------------------|

| **Annual** | ~$7,600 | $74,672 | **~9.8x** |

| **Weekly** | ~$146 | ~$1,436 | **~9.8x** |

| **Hourly** | ~$3.70–$3.85 | ~$37.80 | **~9.8–10x** |

**Notes**:

- 1975 uses historical average full-time earnings (close to the era's typical worker benchmark).

- 2026 uses the median you referenced (~$74,672 pa), which better represents what a typical Australian worker earns.

### Revised Multipliers Across All Categories (Using $74,672 pa 2026 Median Wage)

- **Wages**: ~**9.8x** increase

- **Groceries** (e.g., bread, milk, 12 eggs, rump steak): ~8–15x → Wages have roughly **kept pace** or slightly outperformed many staples.

- **Electricity & Gas bills**: Often **12–20x+** (especially post-2010s reforms and wholesale spikes) → Wages have **lost ground**.

- **Cars** (average new): ~7–10x → Wages have **slightly outperformed** or stayed comparable.

- **House prices** (median): ~30–50x+ → Wages have **significantly lost value** here (biggest affordability gap).

### Summary Impact on Wage Value

With the more realistic **median wage of ~$74,672 pa**:

- **Positive**: Everyday groceries and cars are broadly affordable in line with (or better than) wage growth.

- **Negative**: Housing has become dramatically less attainable. Electricity/gas costs also consume a larger share of income.

- A typical worker today needs to work **many more years** of savings or take on far more debt to buy a home compared to 1975.

The other tables (groceries details, cars, houses, interest rates) from previous responses remain consistent. Would you like me to expand any specific table (e.g., hours-of-work-needed for a house, car, or basket of groceries) using this median wage figure?