Real wage growth for Australian workers is expected to improve earlier than previously anticipated, with Treasury forecasts predicting that pay packets will grow faster than consumer prices by early 2023. This is due to nominal wages expected to increase alongside inflation, which is predicted to cool off more quickly than expected. The cost of living package in the upcoming May budget aims to push down inflation by making energy cheaper and contains policies to drive wage growth, including support for minimum and award workers and initiatives to help parents work. While inflation remains a top concern, the Albanese government is on track to achieve a surplus thanks to better commodity prices, lower unemployment and faster wage growth.