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NZ’s wage growth half that of Australia’s

Friday, 11 March 2005, 11:14 am
Press Release: New Zealand National Party

10 March 2005

John Key - National Party Finance Spokesman

National’s Finance spokesman, John Key, says OECD average production wage data issued today contain some alarming statistics for New Zealand.

They are:

When compared with Australia, the UK and the US, New Zealand is the only country in which after-tax wages rose less than gross income. The wage for a Kiwi worker married with two children averaged half of that of an Australian over the past five years. Since 1999, an Australian’s gross wage increased by 25%, and the net wage by 30%, compared with 14% and 5% respectively for a Kiwi.

The wage for a single Kiwi production worker increased by half that of an Australian in the past five years. An Australian’s gross wage increased by 25%, and the net wage by 28%, compared with 14% and 12% respectively for a Kiwi.

“Dr Cullen has chosen to highlight that New Zealand has a low income tax wedge for a single production worker, but what he can’t hide is the fact that overall we are not a low-tax economy nor are we a high-wage economy,” says Mr Key.

ENDS

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