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NZ’s wage growth half that of Australia’s

10 March 2005

John Key - National Party Finance Spokesman

NZ’s wage growth half that of Australia’s

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.


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