Inflation-Linked Minimum Wage Recommended By Australia

(CTN News) – It has been confirmed that the Australian government will support a minimum wage increase in line with inflation this year in order to ease the cost of living for low-income families, although the increase will be smaller than in past years because of the slowdown in inflation.

During its 2023-24 Annual Wage Review, which will be unveiled by the Labor government on Thursday, the Fair Work Commission will recommend an increase in order to prevent “the real wages of low-paid workers from going backwards”, a stance the government has maintained for the past two years.

The expectation is that the minimum wage will be raised. However, what we’re trying to do is ensure that people on the lowest pay in our economy and in our country will not go backwards as much as possible,” Jim Chalmers, the Treasurer of Canada, said in an interview on CTV on Monday.

It’s all about ensuring that people can earn more… And this is because we realize that these cost-of-living pressures do fall disproportionately upon the lowest paid in our workplaces, whose incomes are already low.”

As costs of living surged, the Federal Wage Commission (FWC) upped the minimum wage in July by 5.75%, an increase some had feared would further fuel inflation.

There have been no signs of a damaging wage-price spiral, and inflation has slowed from its peak of 8.4% in early 2012 to a two-year low of 3.4% in late 2012.

By June 2024, the Reserve Bank of Australia expects inflation to decrease to 3.3% from its current level of 4.6%.

Moreover, the Labour government has also pledged to reduce the cost of living by more than 25 percent in the May budget. From July of this year onwards, every taxpayer will receive tax cuts as a result of this legislation.

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