Malarndirri McCarthy (NT, Australian Labor Party) Share this | Hansard source

I also rise to take note of Minister Reynolds' responses in question time today to questions asked by Senator O'Neill. You'd think a policy as straightforward as a living wage would be something that the government could wrap their heads around. But, to listen to members opposite, it's really quite difficult. A living wage is, by definition, the minimum income a worker needs to meet their basic needs—to pay for food, housing, clothing and other essentials.

Under this government and its turnstile of prime ministers, wage growth has stagnated. We are seeing growth in the working poor. Australians are working harder and better, but, under this government, they aren't being fairly rewarded for their efforts. The record-low wages growth isn't something to be proud of. Making working families scrimp and forcing them into making decisions such as choosing whether to turn on the heater in winter because they may not be able to afford the power bill should not be a deliberate by-product of government policy. But this is something that confuses this government. We've had a senior government minister—the Minister for Finance and the Public Service no less—stating that record-low wages are a deliberate design feature, suggesting that keeping wages low is part of their economic strategy. It's no wonder that his colleague the Minister for Defence Industry is confused.

As we heard today, Senator Reynolds's initial reaction to the question about whether she agrees with her finance minister's assessment was telling. She ridiculed his statement, saying it showed a 'fundamental lack of understanding about economics'. But do you know what? She's absolutely right. Keeping wages low makes no economic sense. In the last five years, out-of-pocket costs to see a GP have gone up 24 per cent. Private health insurance premiums are up 30 per cent, electricity prices are up 15 per cent and long-day childcare costs are up 24 per cent. But, in the past year, company profits have grown five times faster than wages. So, when Senator Reynolds said that keeping wages low shows a 'fundamental lack of understanding about economics', no doubt she was thinking about how boosting wages is actually good for the economy and how stagnant wages have held back spending and put a handbrake on economic growth.

While the government seem confused about their economic policy and what it means for Australians, it's pretty clear to everyone else. Under this government the economy isn't working for everyday Australians. Everything is going up in Australia except people's wages. People are finding it harder to get ahead. Households are saving less, and families are being forced to dip further into their pockets to pay for essentials. Families are finding it harder to make ends meet. I'm sure we will see more of these stuff-ups and confusion in the Liberal policies tonight—tax cuts for big business and a few throwaways to the workers doing it tough.

In contrast, I can proudly say I fully support Labor's policies to reverse cuts to penalty rates, boost wages for workers and ensure that the minimum wage is a living wage. A fair go for Australia means a fair wage for working people. Labor's living-wage policy will directly benefit around 1.2 million Australians, or one in 10 workers. When low-paid workers get a pay rise, they spend it in the local shops; they spend it in cities like Darwin, communities like Wadeye and Borroloola, and towns like Alice Springs. It helps small businesses in Palmerston, Tennant Creek, Katherine and Nhulunbuy.

As well as reversing the cuts to penalty rates to boost people's pay, Labor will make sure the minimum wage delivers a decent standard of living for families. Labor wants the Fair Work Commission to have the tools to determine what wage is required to provide a decent standard of living for low-paid workers. A living wage should ensure people earn enough to make ends meet and be informed by what it costs to live in Australia today—to pay for housing, food, utilities and a basic phone and data plan. It's not that hard to support.

Question agreed to.