Australian prime minister would welcome inflation-matching minimum wage rise

SYDNEY (Reuters) – Minimum wage increases that match inflation would be welcomed by the Australian government, the prime minister said on Friday, although government submissions to an independent wage-setting body would not advocate for a specific number.

Changes to minimum wages, which vary by industry, are reviewed annually by the independent Fair Work Commission (FWC). The union peak body, the Australian Council of Trade Unions, has already called for a 7% increase to match inflation.

Prime Minister Anthony Albanese said the Labor governments submission to the FWC would not contain a specific number but he would welcome an inflation-matching increase in minimum wage.

“My values havent changed,” Albanese told ABC Radio.

“If the Fair Work Commission makes that decision then I would welcome it, but it is an independent decision of government. It‘s up to them to determine the range of factors they’ll consider.”

An inflation matching wage bump could complicate the job of a Reserve Bank expected to pause rate hikes at its meeting next Tuesday in response to moderating inflation. Prices eased to 6.8% in the year to February, the slowest pace since June last year.

Australian Council of Trade Unions Secretary Sally McManus said on Thursday a 7% increase was about survival for the lowest paid workers.

“Any argument by business lobbyists for anything less is an argument that their customers – the people who drive consumer spending – should cut back even more.”

Submissions to the FWC close on Friday and most changes will take effect after 1 July.

(Reporting by Lewis Jackson; Editing by Lincoln Feast.)