Labor will push for an increase to the minimum wage as part of an independent annual wage review.
Every year, the Fair Work Commission reviews the minimum wage and invites submissions from interested parties.
The current minimum wage is $24.10 per hour.
The Coalition, unions, and business groups are set to put forward their recommendations over the next few days.
Here’s what you need to know.
Wage review
The Fair Work Commission (FWC) is the national agency governing Australian workplaces.
It’s responsible for the annual review of minimum wages, including the awards covering one in five workers.
Last year, the FWC raised the minimum wage in line with inflation at 3.75%, meaning a full-time employee earns $915.90 a week at a minimum.
Public submissions for this year’s wage review are due by Friday. Any changes will come into effect on the first day of the new financial year, 1 July.
Labor
In its FWC submission today, Labor is urging an “economically sustainable real wage increase” for awards.
The annual rate of inflation was 2.4% to the December quarter, according to the latest Australian Bureau of Statistics (ABS) data.
A ‘real wage increase’ would mean a minimum wage lift of more than 2.4%.
Your contribution ensures The Daily Aus can continue doing the work you love.
I want to give $10 monthly to help TDA keep doing the news.
Your details:
The submission states that Labor believes a wage rise slightly above inflation is “fair” and “economically responsible”.
Coalition
The Coalition is due to put forward its submission to FWC within the coming days.
Speaking to reporters on the campaign trail, Coalition Leader Peter Dutton said: “We support wage increases”, without specifying an amount.
“We want higher wages and we want to make sure we have downward pressure on costs,” Dutton said.
Business groups
Top business and industry groups are expected to release their recommendations within the next two days.
The Australian Chamber of Commerce and Industry (ACCI), one of the key peak bodies, is calling for a “wage increase of no more than 2.5 per cent.”
In a statement, ACCI chief executive Andrew Mackellar said: “To be sustainable, any increase in wages must be linked to productivity.”
What now?
Key unions are expected to release their submissions the coming days.
Submissions close on Friday.
The FWC will host consultations in Sydney in late May.
It’s then expected to hand down a decision ahead of 1 July, which marks the beginning of the next financial year.
