Business profits boom as workers’ wages bust

Thursday 5 December 2019

Monday’s September quarter Business Indicators release from the ABS, which feeds into today’s national accounts, showed that wages & salaries remain wildly divergent from business profits.

As shown in the next chart, real business gross operating profits continued to boom in the year to September:

Whereas, there remained a huge gulf between wages & salaries:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.