Wages growth likely subdued in early 2018

Colin Brinsden, AAP Economics Correspondent
Wages grew by just 0.5 per cent in the March quarter, keeping the annual rate at 2.1 per cent

New wage growth figures are likely to show why Australians are enthusiastically supporting the Turnbull government's personal income tax cuts, even if it is only $10 a week for the average earner.

The wage price index - the Reserve Bank and Treasury's preferred measure of wages growth - is released on Wednesday.

Economists expect the index rose by 0.6 per cent in the March quarter, which would keep the annual rate at around 2.1 per cent and only just above the pace of inflation.

It would remain close to the lowest level in almost 20 years.

Last week's federal budget included a three-stage tax plan that would see an average earner receive a $530 tax cut initially.

The weekly consumer confidence index - compiled by the ANZ and Roy Morgan and released on Tuesday - jumped to an 11-week high in response to the budget.

It was the fifth straight week the index has increased.

The monthly Westpac-Melbourne Institute consumer sentiment survey is also released on Wednesday.