Wages set to rise for millions of Australians as Anthony Albanese confirms backing for ‘cost of living’ pay bump

Anthony Albanese is backing a generous pay increase for Australia’s lowest-paid workers.

The federal government has made a submission to the Fair Work Commission recommending a real wage increase for the three million Australians, either on the minimum wage or an award, from July 1.

Treasurer Jim Chalmers and new Employment and Workplace Relations Minister Amanda Rishworth said this was about helping Australia’s lowest-paid workers.

‘This will help around three million workers across the country, including cleaners, retail workers and early childhood educators,’ they said.

‘Boosting wages, cutting taxes for every taxpayer and creating more jobs are central parts of our efforts to help Australians with the cost of living.’

The annual wage review decision, due to be announced in June, would affect 180,000 Australians on the minimum wage plus the 2.7million low-paid workers on 121 awards. 

Australia’s lowest paid last year received a 3.75 per cent increase that saw the minimum wage rise to $24.10 an hour or $915.90 a week.

The industrial umpire’s decision was made in June last year when headline inflation was at 3.6 per cent, which meant only a small real wage increase of 0.15 per cent. 

But in the year to March, wages rose by 3.4 per cent when the consumer price index was at 2.4 per cent – meaning a real wage increase for most workers of one per cent. 

Unemployment in April remained at a low 4.1 per cent – or at a level below the non-accelerating inflationary rate of unemployment where wage rises can still fuel inflation because workers still have the power to bargain for better pay.

This could discourage the Fair Work Commission from awarding another generous pay increase, considering overall wages are now outpacing inflation again. 

Since Labor in May 2022, the national minimum wage in Australia has increased by 8.5 per cent.

This included a 5.2 per cent rise in 2022, which was the highest in 16 years as inflation climbed to levels last seen in 1990.

‘The minimum wage has already increased by $143 a week since we came to office, and the median wage has increased by $206 per week since we came to office,’ Chalmers and Rishworth said.

‘Now, we’re recommending they should go further, providing an economically sustainable real wage increase to Australia’s award workers.’

Albanese this week told his cabinet that increasing the minimum wage will be one of his first election priorities despite the added financial pressure that will put on already struggling businesses.

‘Labor will always stand for improving people’s wages and conditions,’ he said.

The federal government has made a submission to the Fair Work Commission recommending a real wage increase for the three million Australians either on the minimum wage or an award, from July 1 (Employment and Workplace Relations Minister Amanda Rishworth is pictured second left)