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December 12, 2017

Today’s report from the McKell Institute puts the lie to claims from local LNP MPs that penalty rate cuts are good for the economy.

The Impact of Penalty Rate Cuts on National Growth Trends Report shows that since the cuts to penalty rates on 1 July, Australia has faced the weakest three months of consumer spending since 2008, suggesting there is some correlation between the pay cuts and low consumer spending.

According to the report, in the June - September 2017 quarter, household consumption fell by 0.09 per cent – a decline in spending. In the same quarter, GDP grew by 0.6 per cent (from 0.7 per cent the previous quarter) – a decline in income, expenditure and production.

These figures show that, rather than helping create jobs, the penalty rate cuts that our Gold Coast LNP MPs supported are in fact hurting the local economy.

This follows the restaurant industry’s recent admission that it had no evidence that penalty rate cuts would create restaurant and café jobs.

Steve Ciobo must immediately retract his claim that “this decision will create jobs and boost tourism” (Gold Coast Bulletin, 13 June 2017)

The only impact reducing penalty rates will have is a pay cut for some of the lowest paid families, who are already struggling with cost of living pressures.

How out of touch can you get?

Steve Ciobo and the Turnbull Government voted for these changes. Not just once, but again and again.

To make matters worse, Mr Ciobo’s electorate of Moncrieff has the highest number of workers that rely on penalty rates of any electorate in the whole country, up to 16 800 workers.

In total, the Gold Coast LNP MPs and the Turnbull Government are responsible for the impact these cuts will have on up to 50 000 Gold Coast families.

While they are supporting penalty rate cuts, the Turnbull Government is also giving millionaires a $16,400 tax cut and spending $65 billion on a tax handout to the big banks and multinational corporations.

Gold Coasters need a pay rise, not a pay cut.

And yet again, the wall to wall Federal LNP MPs has backed in Malcolm Turnbull over their community.


The Gold Coast is sick of being taken for granted by MPs that won’t fight for them. The Gold Coast deserves better.