Minimum wage rise on high side, but Panel recognises costs pressures

Despite a minimum wage rise of 2.6% that is still on the high side, Australia’s premium employer group the ‘Ai Group’, has welcomed the Minimum Wage Panel’s recognition this week of cost pressures faced by employers.

In handing down its decision, which equated to an increase of $15.80 per week on the minimum wage, $18.40 on the base trade rate, and up to $30.70 for professionals, the Panel acknowledged minimum wage increases are a “blunt instrument for addressing the needs of the low paid” and that the “tax transfer system can provide more targeted assistance to low income households”.

“It is time for the unions to adopt a more progressive approach to this issue and to moderate their wage demands when changes to taxation arrangements, transfer payments and superannuation are on the agenda,” said Ai Group Chief Executive, Innes Willox.

Industry was also pleased that the Panel expressly stated the 2.6% increase “is lower than it otherwise would have been in the absence of the superannuation guarantee (SG) increase” – an important principle given that several further increases in the SG have been legislated for.