"Imagine what a 10% cut to wages above say $150k and a 5% cut to wages between say $50-149k could do for Australia's productivity."
Tell that to the CEOs of our public companies.
Pay cuts do nothing for productivity, it has everything to do with profitability. We should try not to get mixed up this two concepts.
People in the $50 - $149k region, when they have their pays cut by 10%, what will most likely happen is, they will "adjust" their productivity downwards by 10%. A 10% pay cut is a significant reduction, and you can expect a significant impact on a worker's morale.
