Scott Morrison gets $11,000 pay rise on the day workers lose penalty rates

Mr Morrison has had three significant pay rises in a year.

Mr Morrison has had three significant pay rises in a year. Photo: Getty

Scott Morrison has earned an $11,000-a-year pay rise on the same day some of Australia’s lowest-paid workers had their penalty rates cut.

But there’s even better news for the Prime Minister if his tax cut package gets the Senate’s approval.

Mr Morrison stands to double his money and secure an $11,000-a-year tax cut in 2024 if he’s still in the top job. 

The independent remuneration tribunal announced a 2 per cent increase to all MPs’ pay on Thursday.

The Prime Minister has secured three pay rises in just a year, taking his annual salary to $549,229 annually.

His total annual pay increase since July 1, 2018, including becoming PM, is $141,229. 

For Mr Morrison, the 2 per cent pay bump will deliver an immediate salary increase of $10,769 on July 1. 

Mr Morrison secured a $12,409 wage rise as Treasurer in July, bringing his salary to $420,409.

But a month later, after Malcolm Turnbull was dumped as PM, Mr Morrison grabbed the top job and his salary jumped on August 24. 

ACTU assistant secretary Liam O’Brien pointed out that the Prime Minister’s latest pay increase came on the same day that retail workers faced further penalty rate cuts. 

“Australian workers have seen six years of near-record, low wage growth under this government. The policies of the Morrison government have driven down wages and eroded workers’ rights,” Mr O’Brien told The New Daily.

“The Morrison government will enjoy a pay rise on the same day that 700,000 low-paid workers will once again have their penalty rates cut. 

“We need systemic change to give working people more power to fight for, and win pay rises, not a government which admits low wage growth is a feature of its policies.”

The independent Remuneration Tribunal said in its decision, which also applies to federal judges and public servants, it had taken into account economic restraint, lower wage growth more broadly and the government’s public sector workplace bargaining policy.

“The tribunal notes that various indicators predict that wage growth is expected to increase gradually, lagging economic growth,” it said.

“Wage growth has increased modestly over the past year, with reliable measures indicating private sector wage growth is now equalling or outpacing the public sector.”

MPs and senators currently get a base annual salary of $207,100. That means the 2 per cent pay increase will deliver a $4000 pay rise for backbench MPs.

United Voice secretary Jo-anne Schofield said workers in the hospitality industry could lose as much as $2000 a year when further penalty rate cuts come into force on July 1.

“Working people need jobs that are secure and pay them fairly – not more cuts that stop them from being able to pay for life’s essentials,” she said.

The average hospitality worker earns $20.91 an hour for weekday shifts.

Under Mr Morrison’s tax cut plan, any workers earning over $200,000 a year stand to secure an $11,000-a-year tax cut from 2024. 

Workers earning $41,000 a year will secure $680 in tax relief in the same year. 

The federal government’s tax estimator allows workers to use their annual income to calculate their tax cuts in future years under the tax plan here.

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