EARNINGS

Earnings from paid work determine most Australians' capacity to buy goods and services for consumption, and are a key determinant of material living standards.

Full-time adult ordinary time earnings is a widely used measure of earnings. It is unaffected by fluctuations in the hours of part-time work or overtime performed. Full-time adult ordinary time earnings grew at an average rate of 4.8% per year over the last decade from $750 per week in 1999 to $1,199 in 2009.

Not all of this increase has resulted in improved spending power for Australian employees, as inflation has increased the prices of goods and services. The Consumer Price Index has remained at about 3% per year since 2001-02. For further information see the Inflation section.