The McKell Institute report released today details the impact of cuts to penalty rates on workers and on the economy in the first quarter since they have been in place.

The Impact of Penalty Rate Cuts on National Growth Trends Report shows that since the cuts to penalty rates on 1 July, Australia has faced the weakest three months of consumer spending since 2008, suggesting there is some correlation between the pay cuts and low consumer spending.

According to the report, in the June - September 2017 quarter, household consumption fell by 0.09 per cent – a decline in spending. In the same quarter, GDP grew by 0.6 per cent (from 0.7 per cent the previous quarter) – a decline in income, expenditure and production.

There is no suggestion that penalty rate cuts will create jobs.

The only impact reducing penalty rates will have is a pay cut for families in the Ipswich and Somerset region who are already struggling with cost of living pressures.

While Turnbull cuts penalty rates for workers in the Ipswich and Somerset region, he is giving millionaires a $16,400 tax cut and spending $65 billion on a tax handout to the big banks and multinational corporations.

Ipswich and Somerset workers need a pay rise, not a pay cut.