Who's excited about their 5.75% payrise?
Doesn't cover the fact that my favourite frankfurts have gone up by at least 50c at Aldi (still @ $2.50 cheaper than Colesworth).
Not to mention KFC price rises, Guzman, Maccas etc
Who's Excited about Their 5.75% Payrise?
Comments
I can assure you most business will raise prices by 5% to cover the wage lift. particularly small businesses
I'm loving the folk who jump on here, claim how no one understands economics and go on to make statements like this.
If a small business can increase their prices by 5% and have no drop off to their sales then they're currently undercharging for whatever it is that they do.
Same goes for rents. Landlords can't simply keep increasing rents because interest rates go up. However they can keep increasing rents because supply is (profanity) and their is a housing crisis - but the point being they could this regardless of interest rate rises.
If a small business can increase their prices by 5% and have no drop off to their sales then they're currently undercharging for whatever it is that they do.
Can't accuse others of not understanding economics themselves after making over simplistic dumbed down claims like these. There's multiple factors that go into prices that businesses set. One of them is competition. If majority of small businesses are hit with labor cost increases and pass them on, of course it is going to have minimal effect on sales. Prices will have increased across the board. Compared to before if 1 random small business were to increase prices for no reason and a consumer could have just gone to a cheaper competitor. Not sure how you can confidently make the claim they were undercharging prior….
The whole "It's just economics bro…" argument is dismissive of real world complex issues that need attention and is usually made by people who are desperate to appear smarter than they actually are while having no clue themselves.
Why not put negative gearing on pause for next 3 years? It will be unsavoury but will help bring the inflation down. It will also bring down the property prices further. No one has the spine to make difficult decisions
Why the $$% are you not treasurer? Mind you I've said this to friends in the past. etc
Because of this decision RBA will lift the rates again and it will impact people who won’t get any pay rise. Middle class is the Guinea pig of the government. Not just here it’s a phenomena around the world
RBA is way behind USA when it comes to inflation control and hence they will have increased interest rates without this pay increase but this announcement will help them cover their failure as people without understanding economic will blame pay rise as reason for increase in interest rates.
Middle class is just an illusion created to keep the "lower" class in check. In reality, there is only super rich and ruling elites vs the rest of the peasant.
there 2 things that political suicide. one is raising the gst and the other is stopping negative gearing.
Or the slow burn ACTUAL suicide.. do nothing till people start rioting in the streets. Crime and home invasion numbers are already rising in many places and neighbourhoods have begun chipping together to hire private security to patrol their streets because police don't do anything. Mate runs a store selling home security products and in the past few months he's had backlogs of orders and not enough products to meet demand. Won't be long before groups of people crazy and fed-up enough with nothing to lose start directing this anger towards politicians. Aussies are known for being politically passive(apart from making snarky political comments online), but at the end of the day Aussies are still human and humans have been known to do some pretty extreme things when backed against a corner and unable to meet their basic needs.
People already told the government by not voting for bill shorten who proposed to remove capital gain tax on investment property….
If you go back few years on ozbargain then you will see massive thread just to talk against Labor previous policy of capital gain tax on investment property… !
@SydBoy: It doesn't help that Murdoch owns majority of our media outlets and was able to run multiple smear and misinformation campaigns during the time. Heck, most parties tiptoe around this issue carefully just because of the amount of influence the old fart has. The people who actually benefit from these loopholes are in the minority.
@[Deactivated]: i agree media outlet plays big part of it and that is why what labor should have done is what liberal did in NSW where they implemented property tax without going to election on that tax ….. !
the next best labor can do is at-least replace current RBA governor who got into job during liberal time and have someone who can manage inflation better … !
Australia inflation is at 6.8% (monthly) and 7% (quarterly) while America is back to 4.8% so superb management of inflation and they still don't have recession as yet … as feared by many .. !
Australian people ended Bill shorten career prematurely as once he was honest to go to election to end negative gearing and it was also done by renters and property owner both … !
A better decision would be to raise the GST to 15%-20% and remove all the exclusions. The savings could be used to lower income taxes.
Increased GST will bite middle class more than anyone as increase in GST will increase and encourage more cash in hand business which can be exploited by businesses and blue-collar workers but middle class working on PAYG will have no way to escape results into further pain and division in society… !
Only way out is replace RBA governor who failed to manage inflation and remove capital gain tax benefits for investment property but I doubt any politicians will do that after what happened to bill shorten… In my opinion… !
Negative gearing isn't a concept unique to property investment — anyone is allowed to offset their expenses from their income. What you're asking for is for people to pay tax on their incomings but wear the cost of their expenses. Whilst you could phase in new rules gradually, you could bring down the entire system if this was put in place as a snap decision.
Why try when you can just minimum wage? #NOICE
Im looking forward to paying 5.75% more for everything while seeing no increase on my pay packet. /Sarcasm
The best way to increase your income is find a new job.
I didn't get a 5.75% increase this year, and my life has gotten significantly more expensive. Time to jump ship.absolutely correct… those stay in same job for more than 3 year are the victim of low wage growth unless they are on super high position (already on 200k + wages) .. !
Hard to find a new job or new industry if you're over 55.
it's hard to find new industry after 40 …. so 55 isn't a question.. !!!
50 Applications this year, and I've had 2 phone Interviews and 1 'trial', which was on the weekend.
I'm on the wrong side of 50, and have plenty of experience. Fortunately I have casual work, that has kept me from eating Devon Sandwiches every day.
sorry to hear about your struggle but just hang in to the casuals as i do the same as after 40 i have many career gap as either i am too experienced for the role or they prefer to pay peanuts for the experience they are looking … i mostly did amazon flex and thought it wasn't superb or any significant earning but allowed cashflow moving in the bank account .. !
Unfortunately can't do rideshare etc due to being under a Novated Lease.
I did Mystery Shopping, but found it stressful, took too long to get paid, and the companies would do anything to get out of not paying you. CV19 hit, and opportunities and jobs dried up.
This is honestly feels like the only viable solution, aside from sidegigs and investing. People that did get the 5.75% increase are going to find themselves in the same position after upcoming rba rate rises and subsequent rent + cost of living increases. We now just have more people on what is considered minimum wage who are going to experience the same difficulties and every one else's income/savings are worth less.
What should it have been?
A wage reduction on those above 150k.
Cool. I earn more than that - how much should my wages be reduced by?
Didnt know Oz bargain had so many economists with such easy simple solutions to single handily fix high inflation, low wages and high rents/home prices.
Yall should work in government and fix all these issues!
We'll those in government could not do what in US treasury did makes a solid case to get some one from ozbargain to be given fair go .. !
This rate does not apply to private businesses or commercials therefore meaningless unless you are on minimal wage or work for government
I've already started checking out properties in Double Bay.
Poor Gerry. Happy to take Millions of tax payer money when its not needed but forced to distribute any money to his actual staff in extremely high inflation and cost of living rises and cries poor.
Hope his shitty store closes.
Garry made all of us pay tax on ebay stuff worth $1 and then he cry poor if staff wages goes up but he never come out to pay bonus discount to customer when they got bumper profits .. !
So a retail worker at JB gets the 5.75% pay rise as well?
I am lucky enough not to be a minimum wage so this doesn't effect me, but i applaud The Fair Work Commission for recommending this wage increase.