Free market think tank the Institute of Public Affairs has called on the federal and state governments to reduce public sector salaries for those on over $150,000 by 20%.
A new nationally representative poll of 1,012 Australians by the Institute of Public Affairs, with data collected by Dynata between 24-26 April, 2020, asked Australians to agree or disagree with the statement ‘Politicians and senior public servants on salaries over $150,000 should have their pay reduced by 20%.’
- 74% agree
- 10% disagree
- 16% neither agree nor disagree
“It’s time for the Morrison Government to listen to the Australian people and reduce politicians and public sector pay for those on over $150,000 by 20%,” said Daniel Wild, Director of Research at the IPA.
“If we are truly ‘all in this together’ then the economic and social pain must be shared around.”
“Equality of sacrifice is required to get Australia through this unprecedented peacetime challenge,” said Mr Wild.
There was strong support across all age groups for a pay reduction – 63% support from those aged 18 to 34 years-old; 73% support from those aged 35 to 64; and 85% support from those 65 and over.
“Even New Zealand Prime Minister Jacinda Arden has announced a 20% pay cut for government ministers,” said Mr Wild.
“Over 800,000 Australians have lost their job in the private sector, but the public sector remains untouched.”
“Reducing public sector pay is not aimed at punishing public servants but ensuring that they have skin in the game. For this reason, no public servant should receive a bonus until unemployment falls back below 5%.”
“Federal public servants have on average 20% higher wages than private sector workers in Australia. This is unacceptable in good times but unconscionable in the middle of economic and social Armageddon,” said Mr Wild.
Download the IPA’s new report: Shared Sacrifice In The Two Australias – which provides a quantitative analysis of a 20% pay reduction in the public service.