PM: Trust business for wage growth

AUSTRALIANS desperate for a real wage increase to combat cost-of-living pressures must rely on businesses and not “magic” government intervention, Prime Minister Scott Morrison has warned.

The Reserve Bank of Australia has forecast wages will not rise above inflation until the end of 2023, with “real” incomes dropping 3 per cent this year alone, but Mr Morrison said this was not something a government could directly intervene in.

“Businesses can make wages go up,” he said.

“When businesses are doing well and when unemployment is going down, then wages go up. That is how it works.”

Mr Morrison renewed his attack on Mr Albanese’s promise to lift wages.

“There is no magic pen from (Opposition Leader) Anthony Albanese that makes your wages go up,” he said.

“There is no law you pass that makes your wages go up.

“What makes wages go up is a strong economy where businesses are doing well and they can ensure that they can pay staff even better and above award rates, which we see in so many companies across the country.”

Mr Morrison has repeatedly rejected Labor’s argument that governments could do more to assist wages growth.

Mr Albanese outlined steps on Monday that he said would boost wages.

“One of the things I will do is to convene a full employment summit,” he said.

“We will change the Act so secure work is an objective.

“We will make gender pay equity an objective as well.

“Our clear objective is to lift up living standards,” Mr Albanese said.