We can only go on the best advice of Treasury and you’re right, since 2010, including for Labor budgets, they have had to change their forecast on wages. Chris has got a three-point plan for lifting wages. $387 bn of high taxes won’t do it.
Strong arming the Fair Work Commission won’t do it. Ensuring that the tax payer subsidises childcare workers in the private sector, that is Labor’s answer to increasing peoples’ wages.
I can tell you that Labor is promising childcare workers a 20% increase over the next eight years.
Their numbers of $10bn of taxpayers’ money is modelled on 100,000 childcare workers. I have news for Chris Bowen, there are 193,000 childcare workers. Which childcare workers will miss out from your taxpayers’ subsidy?
What will happen in eight years time? Will you remove the government subsidies, the taxpayers’ subsidy for childcare workers, what will happen there? Under Labor the government will be on the hook for decades to come.
This will erode our budget, the economic performance of this country. That is the reality of this step with a government under Labor would use taxpayers’ money to fund private sector wages.
When Bill Shorten raised this idea he said: “We’re going to start with childcare.” The next day when there was a lot of criticism of this policy he said “That’s it, it is a one-off.”
What about people in the aged care space, what about people in disability support services? When will you tell them that you’re not going to do anything for your wages, Chris? $387bn of higher taxes will lead to lower wages, fewer jobs and it will lead to a weaker Australian economy.