Household real incomes are not expected to recover to their pre-pandemic levels until 2027, with new data showing Australia’s prolonged decline in living standards extended into the second half of last year.

In the 12 months to September 2023, Australian household incomes slumped 6.1 per cent adjusted for inflation, the sharpest fall recorded across measured OECD economies, according to analysis by The Australian Financial Review. The data is also adjusted for population growth.