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Penalty rates: $667 million LOST

Penalty rates cut will see $667 million lost to workers in regional communities.

McKell instituteNew data from the McKell Institute released today shows workers in 45 regional communities will lose $667 million each year from penalty rates cuts.

$289 million of this money will leave these electorates altogether to line the pockets of corporations in the cities and overseas.

The research shows that more than 277,000 workers in regional communities will be hit by the cut in Sunday penalty rates and much of the savings business owners stand to make will not feed back into the local economy.

The reason for the severe impact on regional and rural communities is due to:
1.        Higher proportion of retail and hospitality workers in rural and regional Australia
2.        These workers earn less than their urban counterparts
3.        Where workers are employed by firms that are not locally owned, the benefits to employers does not stay in local communities.

Quote from GraemeThe full report can be downloaded here: https://mckellinstitute.org.au/app/uploads/The-McKell-Institute-Unfair-Burden.pdfThe report identifies the aggregate reduction of disposable income in each rural and regional electorate across Australia.

According to the report the total loss in disposable income per year in NSW will be $212,660,832.20. The total income leaving regional & rural NSW is $91,121,484.80.

The disproportionate impact on regional and rural communities means more pain for people in those areas already feeling the combined impact of rising cost of living and flat or falling wages.

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