Australia's wage slowdown a double-edged sword

Sydney

AUSTRALIAN wages grew at the slowest pace in at least 16 years last quarter in what is proving to be a sedative for household spending and tax revenues, but a tonic for employment by keeping labour costs low.

Wednesday data showed that hourly rates of pay excluding bonuses edged up just 0.5 per cent in the first quarter, from the previous quarter when they rose an already slim 0.6 per cent.