Income growth to halve from historic average: According to Treasury, if labour productivity grows at its long run average of around 1.5% per year over the medium-term, per capita incomes would grow on average by about 1% per year. This is less than half of what Australians have become used to over the past three decades. Treasury estimates the difference in growth rates translates to a difference in real per capita incomes of $13,000 per year by 2025 or around 20% of today's average income of $63,500. What are the implications for the share market from this slower rate of growth in domestic income? It will make earnings and dividend growth for domestically focused companies in aggregate more difficult to achieve. For instance, credit growth for banks should be lower as households have a lower level of overall income to support interest and principal repayments. Full report here: (VIEW LINK)