Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Brandis. May I first congratulate you and thank you for the leadership you provided to the chamber today.

Yesterday, the wage price index was released for the June quarter, showing annual wage growth continues to languish at 1.9 per cent. Can the minister confirm that under the Turnbull government wage growth remains at the lowest levels since the index was first published in 1998?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

Thank you for those gracious remarks, Senator Marshall. I can't confirm that, because I'm not familiar with the latest statistics on that particular index. What I can tell you is that we have lately enjoyed, in the last financial year, the highest jobs growth since the GFC. In the 2016-17 financial year 240,200 new jobs were created, full-time employment increased by 175,400 jobs, the participation rate increased and in the month of June alone—and this is remarkable—we had some 60,000 new jobs, full-time and part-time.

So the overall picture of the labour market is healthy. There is a real spurt in jobs growth. As you know, Senator Marshall, because I know you take an interest in these matters, healthy labour market conditions will have an effect, in due course, on the price of labour—in other words, on wages. The government is optimistic in this regard, but we are particularly pleased with the strength of the growth in jobs.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Marshall, a supplementary question.

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

The Department of Employment historical trends data shows that in the March quarter private sector agreements wage rises fell to 2.7 per cent and in the public sector fell to 2.4 per cent. Can the minister confirm the data shows that wage rises in the private sector are at the lowest levels in a quarter of a century?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

No, I can't confirm that, because, as I said to you a moment ago, I'm not familiar with that particular index, but I can confirm the overall health of the labour market, and that is the key. Let me give you some more indications of the health of the labour market. In the last six months alone, 210,800 full-time jobs have been created. That is the largest six-month increase in the labour force since the survey began, in 1978. When you have buoyant conditions in the labour market then, as I said in answer to your primary question, that will, in due course, have an effect on the price of labour, as we both know.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Marshall, a final supplementary question.

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Given working and middle-class Australians are already struggling with stagnant wage growth and real wage decline, why is the Turnbull government imposing an increase in the Medicare levy on eight million Australians who earn less than $87,000 a year?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

What, in fact, the Turnbull government and every single one of its policies is doing is stimulating the economy to encourage the kind of jobs growth that I have been telling you about, to encourage businesses to employ more people and to encourage businesses to give businesses the capacity to pay higher wages to the employees they hire. That is why, for example, we have introduced the enterprise tax plan and front-end loaded the enterprise tax plan, so the first beneficiaries of the enterprise tax plan are the small and medium enterprises, which are the engine room of the Australian economy. So, rather than take one thing in isolation, I encourage you to look at the overall picture, because our whole suite of policies is a suite of policies designed to boost the economy and to increase prosperity and wages.