Business owners are expected to push back on a call for 7% wage rise for award workers.
The rise, if given the green light, is in line with recent inflation figures.
A Federal Government submission to the Fair Work Commission’s annual wage does not seek to nominate a wage increase figure but Finance Minister Katy Gallagher says they want to ensure low-income workers are being given sustainable and affordable pay rises.
Treasurer Jim Chalmers warns there should not be automatic minimum wage rises that always match the headline inflation rate.
“But we do believe that this time was a special circumstance, as did the Fair Work Commission, and that’s why we welcome the outcome.”
Business Council of Australia’s Jennifer Westacott says lifting productivity is a more sustainable way to increase wages.
A Productivity Commission report, released last week says: “The sustained path to sustained wage increases is to lift our level of productivity, which is as low as it’s been in 60 years.”