2025–26 ABS CPI + RBA Forecast
A $60,000 salary in January 2021 needs to be ~$75,600 today to match the same real purchasing power. Most Australians have not seen their pay rise that much — see your exact gap.
ABS CPI history, RBA forecast through end-2028, and Stage 3 tax-cut overlay — instant, private, free.
If you've never had a raise, use your start date.
Defaults to today. Move forward to use RBA forecast.
How much your salary needs to have risen, by starting income — using national CPI compounded across the five financial years. Stage 3 columns show the after-tax restoration from the 1 July 2024 cut.
| Jan 2021 salary | Needed May 2026 | Effective in Jan-21 $ | Gap | Stage 3 restores |
|---|---|---|---|---|
| $45,000 | $56,686 | $35,718 | −$11,686 | +$804 |
| $60,000 | $75,581 | $47,624 | −$15,581 | +$1,179 |
| $80,000 | $100,775 | $63,499 | −$20,775 | +$1,679 |
| $100,000 | $125,968 | $79,374 | −$25,968 | +$2,179 |
| $135,000 | $170,057 | $107,154 | −$35,057 | +$3,729 |
| $190,000 | $239,341 | $150,810 | −$49,341 | +$4,529 |
Calculated by compounding ABS All Groups CPI annual rates: 2021 (3.5%), 2022 (7.8%), 2023 (4.1%), 2024 (2.4%), 2025 (3.6%), Jan-May 2026 (4.1% annualised). Stage 3 saving uses Velofy's verified bracket math (in force since 1 July 2024). For Jan 2021 baselines, your real take-home gap is the cash gap MINUS the Stage 3 restoration.
The math, plainly: for each year between your last pay rise and your comparison date, the calculator multiplies your salary by (1 + that year's CPI). Partial years use a daily fraction. The Stage 3 overlay applies the difference between pre-Stage 3 tax (19/32.5/37/45 at $45k/$120k/$180k) and current Stage 3 tax (16/30/37/45 at $45k/$135k/$190k) at your current income — capped at the maximum legislated $4,529/year for incomes above $190,000.
The calculator compounds Australia's annual Consumer Price Index (CPI) inflation rate across each year between your last pay rise and your comparison date, using ABS All Groups CPI data (catalogue 6401.0) for historical periods and the RBA Statement on Monetary Policy forecast for future periods. The result is the salary you would need today to have the same real purchasing power as your original salary on the pay-rise date.
CPI (Consumer Price Index) measures changes in the prices of a basket of goods and services households consume — it tells you how much more expensive living got. WPI (Wage Price Index) measures changes in employer wage rates — it tells you how much more your peers got paid. When CPI rises faster than WPI, average real wages fall. From 2022 to 2024, Australian CPI rose by roughly 11.4% while WPI rose by 8.5% — a real-wage cut of roughly 2.9 percentage points for the average worker. Sources: ABS catalogue 6401.0 (CPI) and 6345.0 (WPI).
Partially. The Stage 3 tax cuts (in force since 1 July 2024) increased after-tax income by roughly $804 at $45k, $2,179 at $100k, and a capped maximum of $4,529 for incomes above $190k. For someone whose last pay rise was 2021, inflation has eroded purchasing power by roughly 18-26%, while Stage 3 has restored 2-4% depending on income. The Stage 3 saving helps, but for most workers below $150k it does not fully offset the cumulative CPI hit between 2021 and 2026. The calculator toggles the Stage 3 overlay automatically when your last pay rise date is before 1 July 2024.
The most recent quarterly CPI annual rate published by the ABS is approximately 4.1% (Mar 2026 quarter, year-on-year). This is above the RBA target band of 2-3% and reflects a rebound from the 2.1% trough in mid-2025. The RBA's February 2026 Statement on Monetary Policy forecasts CPI to remain near 4% through end-2026, falling to around 2.4% by end-2027 as restrictive monetary policy continues to take effect. Always verify with the ABS direct release (abs.gov.au, catalogue 6401.0) for the latest quarter.
Three steps backed by data: (1) Calculate your inflation-adjusted salary above — that's the dollar figure you'd need to be at parity. (2) Pull the Fair Work annual wage review and your industry's WPI growth (ABS 6345.0 publishes by industry) as a comparative reference. (3) Frame the request as real-income restoration, not a "rise". Present the year-on-year CPI accumulation alongside any productivity contribution you've made. Velofy doesn't provide industrial-relations advice — for complex situations consult your union (if covered) or Fair Work Commission free resources at fairwork.gov.au.