NSW Labor's promise to scrap public sector wage cap could cost billions, review finds

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NSW Labor's promise to scrap public sector wage cap could cost billions, review finds
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Voters will go to the polls on Saturday without knowing the budget impacts of Labor's signature policy to scrap the public sector wage cap, but it is likely to cost billions of dollars.

Help keep family & friends informed by sharing this articleCopy linkVoters will go to the polls on Saturday without knowing the budget impacts of Labor's signature policy to scrap the public sector wage cap, but it is likely to cost billions.

But the PBO, which has independently reviewed both the Coalition and Labor election promises, found that a 1 per cent wage rise on the current cap would increase government costs by $2.6 billion over three years. The example from the PBO is based on a 4 per cent pay rise this year, then 3.5 per cent for the following years — and "to fully offset these costs, the government would need to identify new productivity savings".Visit the ABC's NSW election home page for everything you need to know about your seat"Essential workers will always have better pay, better conditions under Labor and will continue to own assets like Sydney Water," he said.

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