Tax cuts to drive wage growth: treasurer

Matt Coughlan
(Australian Associated Press)


Treasurer Josh Frydenberg says the coalition plan to cut personal and business taxes will arrest Australians’ sluggish wage growth.

Mr Frydenberg said the coalition’s tax plan, along with infrastructure spending and moves to boost workplace flexibility would lead to Australians getting pay rises.

“Wage growth has been gradual and we’d like to see it to be stronger,” he told ABC’s Radio National on Tuesday.

The treasurer said the September quarter had seen the biggest jump in wage growth in three years, at 2.3 per cent, above the inflation rate of 1.9 per cent.

He said the most recent monetary statement from Reserve Bank Governor Philip Lowe was positive for the labour market.

“Over time, we will see increases (in wages),” Mr Frydenberg said.

Labor’s promised changes to capital gains tax and negative gearing concessions would punish aspiration and reduce the overall economic pie, he said.

Australian Council of Trade Unions secretary Sally McManus said the Morrison government’s plan offered nothing for workers facing a wage crisis.

“Morrison and Frydenberg believe in a failed trickle-down fairytale that says if you give more money to corporations and the already wealthy, that they will eventually decide to share it with working Australians,” Ms McManus said.

“This is a lie.”


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Categories: Tax