Prime Minister Anthony Albanese says inflation won't hit the UK's level of 10 per cent, with cost of living pressures a top priority at Labor's upcoming jobs and skills summit.
Lifting wages and profits without placing additional pressure on inflation - expected to peak later this year before falling - will be a focus at the September summit, he says.
The prime minister said on Sunday an agreement bolstering the "common interests" of employers and unions should be struck.
"What we are interested in is making sure we can have improvements in enterprise bargaining that we can focus there on productivity and we can focus on ways in which business and unions come together," he told Sky News.
"Through collaboration, you'll get better outcomes.
"So I'm very hopeful, for example, at the jobs and skills summit, that we can get agreement between employers and unions about their common interests."
When asked, Mr Albanese said the economy, cost of living pressures and a more "forward-leaning" China were the biggest challenges he faced during his term in office.
"The economy, of course, is always front and centre because if you don't get the economic outcomes right it's more difficult to achieve your social or environmental agendas," he said.
"The second, of course, is the strategic competition in our region, with China being more forward-leaning. That will continue to be something we are focused on in the region."
Mr Albanese confirmed he will be attending the G20 Summit in Bali later this year, with Russian President Vladimir Putin also indicating he will participate.
"It's an important event for our friends in Indonesia to be hosting and I made that very clear," he said.
"I don't believe we should allow such an important international institution to be undermined."
