The Federal Government is being slammed again over claims inequality is improving.

The HILDA study released this week showed Australian wages have gone backwards over the past seven years.

The research also revealed the Australia’s richest one per cent have enjoyed a surge in wealth three times that enjoyed by middle income earners.

The HILDA survey, which has been following over 7,000 households since 2002, found the median income had fallen slightly from a peak of $76,000 since 2009.

At the same time, key measurements like childcare cost have climbed sharply, and young people have increasingly been priced out of the housing market.

Couples have seen some of the biggest falls in income over that time.

ACTU president Ged Kearney said the HILDA study showed that the Federal Government’s claims about inequality and pressure on wages were not reflected by the facts.

“The Turnbull Government is on the record as denying inequality is getting worse. We are calling bullshit on that lie right now,” she said.

ABS stats have separately confirmed that for many groups, incomes are not keeping up with rising costs of living.

In the last year alone, the cost of living for pensioners, those on unemployment benefits and other receivers of benefits have risen by two per cent.

The cost of living for working families have seen an increase of 1.3 per cent.

Greens treasury spokesperson Peter Whish-Wilson said the report showed Australia was splintering down class and age lines.

“We hear a lot about class warfare in Australia but what we are now seeing is the beginnings of inter-generational warfare. Income and wealth inequality are now dividing Australia not just on class but also on generational lines,” he said.