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Tasmania continues to fall behind on wages growth

  • Budget predicts wage increases nationally while Tasmania falls behind
  • Time for Gutwein and the Liberals to scrap their wages policy and negotiate in good faith
  • Liberals’ flawed wage policy sets benchmark for rest of the economy

The Federal Budget highlights that Tasmania is falling further behind on wage growth, which is contributing to cost of living pressures and the housing affordability crisis.

“Tasmanians earn the lowest wages in the country.  Not by a little bit, but by a lot,” Shadow Treasurer Scott Bacon said.

“Average weekly earnings in Tasmania are $200 less than the national average and over $400 less than the ACT.

“The Australian Budget now predicts wage increases of up to 3.5 per cent a year over the forward estimates, meaning Tasmania risks falling even further behind.”

Mr Bacon said the Hodgman Government could help to close the gap by using increased revenues from the 2018-19 GST distribution to scrap their two per cent wage cap.

“The two per cent wages cap doesn’t only affect public servants – it is effectively the benchmark that other employers use across the economy,” Mr Bacon said.

“The Consumer Price Index for Hobart is rising – the year average change is 2.1 per cent, meaning anyone who is affected by the wage cap is earning less in real terms every year.

“If the Liberals want to tackle cost of living pressures they could start by scrapping their wages policy and negotiating with their workforce in good faith.”

Source: Treasury