David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Hansard source

The bill before us, the Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire) Bill 2016, underpins a new government policy. It is a policy of encouraging businesses to employ young people at the minimum wage of $17.70 an hour by giving businesses a subsidy so that their overall outlay is only $7.60 an hour. I support the intention of the bill but I oppose the policy. I recognise the concern for youth jobs but I am not persuaded that this is an appropriate response. It is wrong in principle and a waste of taxpayers' money.

Businesses should simply be allowed to offer jobs to people at $7.60 an hour. After all, the dole delivers $7 an hour for doing nothing. The government's policy, and this bill, is a response to the fact that no job exists at $17.70 an hour, but a job does exist at $7.60 an hour. It is a clear admission that the minimum wage destroys jobs. The logical solution is to abolish it, not subsidise it. Abolish the minimum wage and you create jobs and growth. Abolish the minimum wage and you save thousands of Australians from soul-destroying unemployment. Abolish the minimum wage and you save each taxpayer hundreds of dollars a year. I oppose this bill and the logic it represents.