Samantha Maiden: Labor has long-argued that low wages were a deliberate design feature

Scott Morrison’s search for a new job should probably avoid any roles as a fortune teller, writes Samantha Maiden.

It was perhaps one of Anthony Albanese’s most potent lines during the election campaign: everything is going up except your wages.

It’s true of course. Anyone who has bothered buying fresh food at the supermarket or even filling up a petrol tank knows it – notwithstanding the pre-election fuel excise cut.

Brandishing a dollar coin, he was mocked by the Liberal Party for suggesting that wages should keep pace with inflation.

Scott Morrison was adamant that the Labor leader could not deliver on that promise and it was a case of buyer beware for voters.

“He’s been banging on about this for the last three years, talking about how he can boost wages but when push came to shove and he had to answer the question, ‘Can you increase wages?’, well, he can’t,” Mr Morrison said.

“There’s no magic wand to increase wages. There’s no magic pen that makes it happen. Voting at this election for the Labor Party doesn’t automatically make your wages go up and Mr Albanese made that point last night.”

If the former prime minister is looking for a new career as a psychic he may have to get some new tarot cards. His prediction that his replacement could not deliver a serious wage increase for low income workers was sorely tested this week when the Fair Work Commission announced a whopping 5.2 per cent increase to the minimum wage.

Australian Prime Minister Anthony Albanese. Picture: NCA NewsWire / Dan Peled

Given the green light by the incoming Labor Government, the FWC slammed its foot on the wage accelerator. It’s good news for workers captured by the increase. Some employers will be less thrilled.

The bad news of course is that wages are still likely to fall behind in real terms.

That’s because the reserve bank is predicting that inflation will rise by 7 per cent by the end of the year.

The Prime Minister was quick to claim it was a win for workers and an election promise delivered.

“Australia’s low-paid workers will be better off because the Albanese Labor Government fought to get them a pay rise,’’ Mr Albanese said.

“During the election campaign, we promised to put in a new submission to the Fair Work Commission’s annual wage review to argue that people on low wages should not go backwards. We delivered on that promise in our first fortnight in office.

“Today, the Fair Work Commission has delivered a 5.2 per cent rise in the minimum wage, slightly above headline inflation.

“Its decision means an extra $40 a week for full-time workers on the minimum wage or low-paid awards.”

As he pointed out, many low-paid workers are young, female, in casual employment, and are far more likely to find themselves experiencing financial hardship.

“Many of them were on the front line delivering essential services during the Covid-19 pandemic,’’ he said. “They deserve more than our thanks. They deserve this pay rise.

“The government is determined to get wages moving again.”

The rise will take effect on July 1. The increase is slightly above the government’s own submission on the minimum wage, which was 5.1 per cent, the rate of inflation.

Labor has long-argued that low wages were a deliberate design feature of the Abbott-Turnbull-Morrison government policies.

“They never once advocated for low-paid workers to get a pay rise,’’ he said. “That era is now over.”

Former Prime Minister Scott Morrison. Picture: Darren Leigh Roberts

Of course, the devil is in the detail. Award minimum wages will be increased by 4.6 per cent, with a minimum rise of $40 a week.

This means if you’re a worker on award minimum wages above $869.60 you will get a 4.6 per cent rise, while those earning less will receive a $40 increase.

And workers in aviation, hospitality, and tourism will need to wait. The increase will take effect on October 1 as a result of what Fair Work described as “exceptional circumstances”.

And the politicians? While they got a comparatively modest increase of 2.75 per cent the money in their pocket will be much, much more than low-paid workers.

Anthony Albanese’s pay packet will total $564,364, an annual increase of $15,104.

That means he will get a pay hike of $290 a week.

Opposition Leader Peter Dutton will secure $401,000.

Meanwhile, Greens leader Adam Bandt will take home $314,737.

It’s enough to make Scott Morrison, who will now take home $217,000 as a humble backbencher, open up a new LinkedIn account and fire up his contact book for life after politics. And before anyone complains that politicians need to be paid more so it attracts a better calibre of recruits, never forget that Australian politicians are well paid by international standards.

Perhaps just another reminder that the cost-of-living crisis remains an abstract notion for the vast majority of our politicians who are among the most highly paid workers in the community.

Something to ponder when petrol prices are put back up to the standard rate when the temporary petrol excise is removed later this year as interest rates rise.