Penalty rate cuts whack Dubbo workers Senator says

More than 700,000 Australians received a cut to their take-home pay on Monday as the third round of penalty rate cuts commenced.

Both business owners, who spoke to the Daily Liberal but did not want to be named, said they "have not employed anyone new since the cuts came in" and were "solely focused" on building their businesses.

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Labor Senator Deborah O'Neill said the penalty rate cuts have not created jobs nor simulated the economy as promised by Member for Parkes Mark Coulton and the Morrison Government.

But Mr Coulton said the government's plans for tax relief would put money in low paid workers' pockets.

"These unfair cuts to take-home pay have made life much harder for retail and fast food workers already struggling to make ends meet at a time of historic low wage growth," Senator O'Neill said.

"The last thing people need is less money in their pay packet, and local businesses in Dubbo who tell the truth have said they have not created one job as a cause of these penalty rate cuts. That makes a mockery of Mark Coulton and the Morrison Government who keep telling us they are delivering the economic growth Dubbo desperately needs.

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"Less money moving around in Dubbo is not good for our local economy as well as having a devastating impact on our local families who are already under huge final pressure to make ends meet.

"I struggle to see how Mark Couton has the best interests of the retail and hospitality workers in his electorate at heart when their take-home pay is going down, and he is doing nothing about it."

Mr Coulton said the government is not in the habit of undermining the independent umpire and said politicians don't set the pay of people in the Parkes electorate and further afield.

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"Don't be confused by Labor's commentary; penalty rates in modern awards still apply on weekends and public holidays," he said.

"Australia has one of the highest minimum wages in the world. As a result of the Fair Work Commission's latest wage decision, about 180,000 of our lowest-paid workers and up to 2.2 million workers covered by modern awards will benefit from a three per cent pay rise from July 1.

"With the return of Parliament this week, we will deliver additional tax relief to hard-working Australians as our first priority. It is a plan for tax relief not just now, but into the future, and includes positive measures for the economy, for jobs and confidence."