The Forum > Article Comments > Interest won't rate > Comments
Interest won't rate : Comments
By Clive Bean, published 7/8/2006The direct impact of a small one-off rise in interest rates on support for the Howard Government is likely to be negligible.
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I agree that WorkChoices is being badly received, but I would expect some compensation for minimum wage earner - like LITO uplift or EITC's: the Fair Pay Commission will likely request it anyway.
See the recent OECD report which paves the way for reducing effective marginal taxation rates on the welfare transition - I think Labor could struggle against a bouyant labour-market with income distribution offset for minimum wage earners and other low paid workers. Whether Aussies prefer jobs and compensation over minimum wage uplift - well the Accord was popular for years in that context - though not now perhaps.
Labor will be tested if they don't get a welfare to work framework out soon. Because they will play catch up on job creation ... small target is still as risky as releasing policy direction.