A number of proposals for reducing unemployment in Australia focus on cuts or freezes in award wages. Typically, such proposals include (often vague) proposals to offset some of the distributional consequences by top-ups or other adjustments to the tax/transfer system. This paper examines the available options and concludes that, given the current structure of the social security system, there are serious obstacles to the most common ones such as the NIT or the EITC. There is a case for further reducing tax burdens on low wage earners, but options in this area tend to be very expensive and/or require targeting on a family needs basis
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