The Horns of Malcolm Turnbull’s Jobson Growth Dilemma

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Dilemma Horn No 1

Private-sector wage growth has slid to a record low of just 1.8 per cent, throwing into doubt budget projections and confounding the Reserve Bank, which would prefer not to have to cut interest rates again and run the risk of reigniting house prices.

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Dilemma Horn No 2

Full-time and part-time workers in retail will have their Sunday penalty rates dropped from 200 per cent to 150 per cent of their standard hourly rate, while casuals will go from 200 per cent to 175 per cent.

Hospitality employees will face a reduction in Sunday pay from 175 per cent to 150 per cent, while casual hospitality workers’ pay will remain unchanged.

So the problem now is that for many people, particularly those were not earning high salaries, wage growth is declining and now access to overtime has been slashed.

So it’s a double whammy.

This means people will have less money to spend and the hope that businesses will be open and thriving as result of cutting overtime rates will not materialise.

It’s disastrous timing for Malcolm Turnbull. We could expect that Bill Shorten would extract a lot of political mileage from this. But Bill has proved to particularly inept of late so he may not lay a glove on Malcolm.

 

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