Yahoo Finance Fair Work Commission to make annual minimum wage decision
Australians on the minimum wage will receive a new minimum wage today, that will come into effect on 1 July.
The Fair Work Commission will release its minimum wage decision at 11am today (Thursday 30 May), a decision that will affect around 2.3 million workers.
Currently, the minimum wage is $719.20 a week, after the Fair Work Commission chose to enact a 3.5 per cent or $24.30 per week increase in 2018.
How much should it be increased?
The Australian Council of Trade Unions believes the minimum wage should rise by $43 a week, or 6 per cent, to $762.20.
“The Fair Work Commission should close the gap between the minimum wage and the OECD definition of relative poverty within two years so that no full-time worker is living in poverty, starting with a 6 per cent increase this year – or $43 per week,” the ACTU said in a statement in March.
“Currently the minimum wage is below the OECD definition of relative poverty, which is 60 per cent of median earnings. A 10.7 per cent increase – or $72.80 per week – would be necessary this year to guarantee no full-time Australian worker lives below the poverty line.”
However, employers believe a smaller increase of $13-$14 a week is more appropriate as this sort of increase would be in line with inflation.
The Australian Industry Group believes a 2 per cent increase, or $14.40 boost is ideal.
"The Australian economy is clearly slowing this year and looks set to stay there for some time. The Reserve Bank of Australia has slashed its growth forecasts and is widely expected to cut interest rates this year,” Ai Group Chief Executive, Innes Willox, said earlier this month.
“Now is not the time for risky movements in minimum wages. The minimum wage increases awarded by the Fair Work Commission in the last two Annual Wage Reviews (3.3 per cent and 3.5 per cent respectively) were exceptionally high and out of step with overall wage movements and economic settings.
“It is essential that the increase awarded by the Panel this year is much more modest.”
Willox argued that low wage employees will benefit from tax changes announced in the 2018-19 Federal Budget. However, Prime Minister Scott Morrison has admitted beneficiaries will be unlikely to see any benefit of the tax offsets until July 2020, as the Coalition has limited time before the end of financial year to legislate the cuts.
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