Media Release - The Government Giveth and the Fair Commission Taketh Away?

Catholic Social Services Australia's Executive Director, Frank Quinlan, today called on the Australian Fair Pay Commission (AFPC) not to undermine gains of around $8 a week promised to low income earners via tax cuts in this year's Federal Budget.

Mr Quinlan said a ‘fair' pay commission would not discount the lowest wages in the country to claw back tax breaks given to all wage earners.

Mr Quinlan made the comments today following a meeting with the Fair Pay Commissioners late yesterday, where he encouraged the Commission to make the most of the opportunity to make significant changes ahead of the establishment of the Fair Work Australia in 2010.

"The AFPC must commit to setting and maintaining real wages for low income Australians, based on solid research. The Commission must guard against inadequate decisions based on out-moded formulae and advice," Mr Quinlan said.

"The AFPC has, to date, underestimated the cost of living for certain families and overestimated the disposable income for families dependent on the Federal Minimum Wage (FMW)," Mr Quinlan said.

"The Henderson Poverty Line, used by the AFPC to inform its previous decisions, sets the current cost of rent for a family of four at $158.80 a week.

"This measure is clearly out-dated and suggests the Commission needs to reassess the real cost of raising a family in Australia in 2008.

"Rents are rising fast, and average up to $440 a week in some parts of the country for a three bedroom house.

"The Commission has a mandate to provide a real safety net for people on low wages, but the current arrangements risk a real wage reduction for the most vulnerable people.

"Catholic Social Services Australia has always held the view that minimum rates of pay must be sufficient, after allowing for income tax and relevant government transfers, to support a family of four without the need for the second parent to undertake paid employment.

"The current Federal Minimum Wage, combined with government transfer payments provides this family with a total disposable income of $754.75 a week.

"This amount does not provide a family with an acceptable standard of living well above the poverty line. A worker cannot support a family and educate children on this income.

"The Commonwealth must commit to a strategy that ensures the maintenance of real wages. It must also ensure the promised tax cuts are not offset by discounted wage increases," Mr Quinlan said.

Catholic Social Services Australia provides services to over a million Australians each year through its 64 member agencies in remote, regional and metropolitan Australia.

30 April 2008

CONTACT Judith Tokley 0 6285 1366 / 0408 824 306