REVEALED: Federal politicians to be handed a pay rise from July 1 - as Scott Morrison announces low paid workers will LOSE $459 a year and nearly a million workers' penalty rates slashed
- Scott Morrison will get an extra $10,000 per year on top of his $538,460 salary
- 700,000 hospitality/ retail workers are set to have to have their penalty rates cut
- Workers could lose as much as $2000 when further penalty rates cut come in
- Graduates earning $46,000 will soon be paying more than $450 in student debt
Federal politicians will receive a pay rise while Australia's lowest earning workers will start paying even more tax.
From July 1, Federal MPs will be handed a two per cent pay rise, with Scott Morrison raking in an extra $10,000 per year on top of his $538,460 salary.
Meanwhile, 700,000 hospitality and retail workers are set to have their penalty rates scrapped, it was announced on Thursday.
From July 1, federal MPs will be handed a two per cent pay rise, with Scott Morrison raking in an extra $10,000 per year on top of his $538,460 salary. (Pictured with wife Jenny and daughters Lily and Abbey)
The independent Remuneration Tribunal said in its decision 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 on Thursday.
'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.'
Workers in the hospitality industry could lose as much as $2000 a year when further penalty rate cuts come into force on July 1
MPs and senators currently get a base annual salary of $207,100.
United Voice secretary, Jo-anne Schofield, said workers in the hospitality industry could lose as much as $2,000 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 in a statement.
The average hospitality worker earns $20.91 an hour for weekday shifts.
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The next 10 percentage point penalty rate transition in the new financial year will mean weekend hospitality workers will have lost $40 a week.
Graduates earning a salary of just $46,000 will also be targeted, and will soon be paying more than $450 a year in student debt.
The Higher Education Loan Program's repayment threshold will be lowered from $51,957.
This means those earning $45,881 will be paying one per cent of their taxable income on tuition fee repayments, which works out at $459 a year.
Graduates earning a salary of just $46,000 will soon be paying more than $450 a year in student debt (pictured are graduates at the University of Sydney)
When the deferred student loan program was introduced in 1989, under Labor prime minister Bob Hawke, graduates didn't start paying back their debt until they earned an average salary.
In today's money, graduates weren't paying off their loans until they earned more than $83,500.
Now those earning less than Australia's median salary - effectively putting them in the bottom half of workers - are repaying student loans.
Almost 2.7 million Australians now have a student debt, which stands at an average of $20,000.
From July 1, the Higher Education Loan Program's repayment threshold will be lowered from $51,957 (pictured as university student protesters in Melbourne)
