6345.0 - Labour Price Index, Australia, Jun 2007  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 15/08/2007   
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In original terms, the industries with the highest rates of increase through the year to June quarter 2007 were Mining (5.6%), Health and community services (4.5%) and Government administration and defence (4.4%). The lowest rates of increase were reported by Accommodation, cafes and restaurants (3.1%) and Retail trade (3.2%).


In original terms, the states with the largest changes through the year were recorded by Western Australia (5.1%), followed by Queensland and Tasmania (both 4.5%). Among the states and territories, Western Australia and the Northern Territory had the highest increases in the June quarter 2007 with 1.7% and 1.1% respectively.


The Australian Fair Pay Commission (AFPC) has had responsibility for setting federal minimum wage rates since early 2006. The first decision by the AFPC had a date of effect of 1 December 2006 and it mostly impacted upon the March quarter 2007 wage price index figures. There was minimal impact of this decision on the June quarter 2007. The second AFPC Federal Minimum Wage decision was announced in July 2007 with a date of effect of 1 October 2007. The second decision is expected to impact the wage price index in December quarter 2007.


The recent industrial relations changes, including the date of effect of the AFPC decisions and changes in the timing of wage increases have affected the seasonally adjusted and trend estimates for the wage price index. In calculating the seasonally adjusted estimates the ABS applied both a trend and a seasonal break to the September quarter 2006, and a further trend break has been applied to the Private sector seasonally adjusted estimates for the March quarter 2007. For further details, see paragraphs 37-45 of the Explanatory Notes.