Today’s Credit Opinion from Moody’s highlights the need for the Government to maintain its two per cent wages policy.
Moody’s notes that any increase in expenditures through a lack of fiscal resolve such as the two per cent wages policy would risk the Budget’s projected financial position across the forward estimates.
This is no surprise given that if wages rise by an additional one per cent to a three per cent pay rise, it would cost an additional $28 million, including superannuation, each and every year
We have balanced the budget through careful financial management and we hope the public sector will support our offer of a two percent wage rise each year, because it’s fair, affordable and reasonable.
There is no question that the State’s finances are back on track after the dark days of the Labor-Green Government, and we will continue to put in place the right conditions to create jobs and strengthen the economy even further without risking our credit rating.

Peter Gutwein, Treasurer