July 1 marked the implementation of the next stage of reduced penalty rates in the retail and hospitality industries in Australia. It is now two full years since the first reductions were imposed for Sunday and holiday work in several segments of retail and hospitality. Once fully phased in, these reductions will reduce wage payments in the two broad industries by an estimated $1.25 billion per year – at a time when concerns over weak wages and their impacts on the Australian economy are growing.

Australia’s economy continues to endure historically slow growth in wages and salaries, that is undermining household incomes, consumer spending, and economic growth. The Commonwealth government continues to predict an imminent rebound in wages – like in its most recent budget, where it yet again forecast wage growth accelerating quickly to 3.5% per year. But is the government willing to actually do anything to support wages?

New analysis of income tax data confirms a dramatic slowdown in Australian wages in recent years – and the slowdown is worse than previous statistics indicated.

Tomorrow the Australian Bureau of Statistics will release its quarterly Wage Price Index: the most commonly-reported measure of wage growth in Australia’s labour market. Given the importance of public debates about wages and wage policy in the current federal election campaign, this release is timely and politically important.

This briefing note reviews some methodological issues related to the WPI. It also considers recent data confirming the visible impact on the WPI of last year’s strong increase in the national minimum wage.

Many Australians are eagerly anticipating a unique concentration of public holidays in coming days. There is a ten-day period (stretching from Good Friday through Sunday, 28 April) during which many employees only have to work three days. Many Australians are now arranging to take those three days off: creating an extended 10-day holiday for the “price” of just three days leave.

This week’s pre-election Commonwealth budget will feature reductions in personal income taxes, as the Coalition government tries to overcome a disadvantage in the polls in the coming federal election. Public debate in recent weeks has been focused on the economic and social hardship caused by the unprecedented slowdown since 2013 in Australian wage growth. It is likely that the government will portray its personal tax cuts as a form of “compensation” for slower wage growth.

New data on private-sector business conditions confirm that wage increases paid in the private sector of Australia’s economy continue to plumb record lows. The ABS’s quarterly Business Indicators report, released yesterday, indicates total wages and salaries paid out by private businesses grew 4.3 percent in the September quarter, compared to year-earlier levels. This only slightly

The share of total economic output in Australia that is paid to workers (in the form of wages, salaries, and superannuation contributions) has been declining for decades. Workers produce more real output with each hour of labour (thanks to ongoing efficiency improvements and productivity growth), but growth in real wages has been much slower –

On 1 July 2018, workers in several retail and hospitality industries will experience a second reduction in the penalty rates they receive for working on Sundays and public holidays.  The reductions were ordered by the Fair Work Commission, and follow an initial reduction imposed on 1 July 2017. Employer representatives argued that by reducing labour

The Coalition government’s 2018 budget features a plan to cut personal income taxes for many Australians over the next several years. The government claims it wants to reward lower- and middle-income wage-earners with tax savings.  However, the biggest personal tax reductions would not be experienced until 2022 and beyond (after at least two more federal elections).  And the biggest savings go to those with incomes over $200,000 per year (the richest 3 percent of tax-filers).

Workers compensation benefits in New South Wales were dramatically reduced in 2012 by a newly-elected state government, citing an alleged financial crisis in the system.  Benefit payments (adjusted for inflation) declined 25 percent in just five years – and some cuts are still being imposed on injured workers and their families (including some losing benefits

The present submission questions the Business Council of Australia’s (BCA) Commitment to increasing investment, employment and wages in the event that the outstanding tax cuts are legislated. We looked specifically at the 10 corporate CEOs who made the commitment on behalf of their companies and found some half of those paid no tax. One wonders what their commitment could possibly mean.

The workers’ compensation system in NSW has been dramatically scaled back and restructured since the current state government came to office in 2011.  Real benefit payouts have been cut by 30 percent, with the resulting “savings” passed on to employers in lower premiums (down 40 percent over the past decade).  Yet injured workers continue to

Budget-cutting political leaders regularly target the jobs and incomes of public sector workers as the first and most politically convenient target of their austerity measures. But their crusade to balance the books by downsizing headcounts, intensifying work, and freezing the pay of the workers who deliver essential public services can backfire. In this new report,

The record-slow pace of wage growth in Australia’s economy is not just making it difficult for families to balance their budgets, it also threatens severe long-run damage to Australia’s superannuation retirement system.  That’s the finding of new research from the Centre for Future Work at the Australia Institute.

This week the ABS released new GDP data, covering the June quarter, which confirm the continuing structural shift away labour toward capital in the distribution of income. We have prepared a short briefing note, contrasting the strong growth in corporate profits over the past year with the stagnation of labour incomes.  Workers simply do not

Our Centre has conducted considerable research into the impacts of the Fair Work Commission’s decision to substantially reduce penalty rates for Sunday and holiday for workers under the terms of the Modern Awards covering four sectors of the economy: fast food, retail, hospitality, and pharmacy. Penalties for Sunday work will be reduced by up to half; penalties will also be reduced for working on public holidays.

Amidst increasing concerns among economists and budget forecasters about the historic stagnation of Australian wages, the latest GDP statistics from the Australian Bureau of Statistics have confirmed that the proportion of national economic output that is paid to workers has reached an all-time low.

The Fair Work Commission released two major decisions this week: its order regarding the timing for the implementation of reductions in penalty rates for Sunday and public holiday work in four major retail and hospitality awards, followed by its annual review of the general minimum wage. Both decisions will take effect on July 1. It

As Australians debate the Fair Work Commission’ decision to reduce penalty rates for retail and hospitality workers, the Centre for Future Work has published new research on the prevalence of weekend work in other sectors of Australia’s economy – and the macroeconomic importance of extra income generated by weekend penalty pay. The analysis is based

Government and business leaders have proposed a range of possible “transition” mechanisms to ease the economic hardship, and defuse political anger, following the Fair Work Commission’s decision to cut penalty rates for work on Sundays and public holidays in the retail and hospitality industries.  This briefing note critically reviews several of these proposals.  Whether they

Today is International Women’s Day, a time to reflect on the continued inequality faced by women — including in the world of work.  Traditional measures of the “gender pay gap” indicate that women earn around 17 percent less than men, in ordinary pay in equivalent full-time positions.  But the situation is worse than that, because

On 2nd March The Australia Institute conducted an opinion poll of 754 residents of the State electorate of Braddon through ReachTEL, with representative samples by gender and age. The polling asked about the Fair Work Commissions ruling that Sunday and public holiday penalty rates should be reduced for full-time and part time workers in the

Remember when Prime Minister Turnbull and Immigration Minister Dutton blamed unionized construction workers for the high cost of housing in Australia? The idea that workers (not property speculators or bankers) are to blame for the property bubble is pretty far-fetched — in fact, it sparked a viral storm on social media, using the #blameunions hashtag.

The scope of the Inquiry is broad. In our submission we have chosen to focus on three areas of policy interest, drawing on our work over the past four years.

Australians may believe that they live in the land of the long weekend but new data lead The Australia Institute to question this assumption.

More than half of the workforce would forgo a 4% pay rise, if it guaranteed them an extra two weeks leave annually. This would create approx. 146,000 new jobs, and help address the over 1 million underemployed and unemployed Australians.