6345.0 - Labour Price Index, Australia, Sep 2007  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 14/11/2007   
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In original terms, the rates of increase for the September quarter 2007 ranged from 0.6% recorded by Accommodation, cafes and restaurants to 2.2% for both Property and business services and Cultural and recreational services. The movement for all industries for the quarter was 1.3%.

The industries with the highest rate of increase through the year to September quarter 2007 were Mining (5.4%) and Construction (4.8%). The lowest rates of increase were reported by Communication services (3.1%) and Accommodation, cafes and restaurants (3.3%).


In original terms, Western Australia recorded the largest change through the year (5.7%) and the equal highest for the quarter (1.8%) which was also recorded by South Australia. The Northern Territory recorded the lowest through the year and quarterly increases of 3.6% and 0.8% respectively.


Annual and public holiday leave

There were no changes in public holiday entitlements between 2005-06 and 2006-07 and relatively few changes reported in annual leave entitlements. As a result, this index generally reflects increases in wages and salaries, with the exception of the Mining industry. Some employers in this industry have reported an increase in annual leave entitlements through the provision of one additional week of paid annual leave for employees working shift work over a twelve month period.


The percentage change from the previous financial year was 4.2% for 2006-07, the same as for 2005-06. Few variations in the rate of superannuation were reported and the increase in this index was mainly driven by higher wages and salaries. At the industry level, the superannuation index for Mining increased by 9.3% in 2006-07. Some employers reported an increase as a result of changing the superannuation entitlement from a flat dollar amount to a percentage of wages and salaries, while some others are now paying above the minimum rate.

Payroll tax

Changes to payroll tax regimes were made in Victoria, Queensland and the Northern Territory. The changes contributed to the payroll tax indexes for Victoria and Queensland each showing smaller increases for 2006-07 than for the previous financial year.

Workers' compensation

Most jurisdictions reduced premium rates in 2006-07 as part of continuing refinements to their insurance schemes. The workers' compensation index for Australia decreased by 4.8% for 2006-07 compared to the previous financial year.