Around three million Australians could see their annual earnings rise by about $2,465 under a new proposal put forward ahead of the national wage review.
The Australian Council of Trade Unions has called for a 5% increase in the minimum wage when the Fair Work Commission conducts its annual review effective from July 1.
If approved, the full-time minimum wage would increase from $24.95 to $26.19 per hour, lifting annual earnings from $49,296 to $51,761. The proposed raise would particularly benefit workers in sectors such as hospitality, retail, disability services, and healthcare.
ACTU Secretary Sally McManus said the push for higher wages is driven by rising living costs, global tensions including the conflict involving Iran, and interest rate hikes by the Reserve Bank of Australia. She argued that low-paid workers have been hit hardest by increasing rents, food prices, and fuel costs.
According to Treasury modelling, inflation could rise to 5.5% if global oil prices reach $120 per barrel due to a prolonged conflict. Inflation had already climbed to 3.8% in the year to January, exceeding the target range.
RBA Governor Michele Bullock said the recent 0.25% interest rate hike was aimed at controlling inflation, while warning of risks of a global recession.
The ACTU maintains that rising housing and energy costs are the main drivers of inflation and argues that a minimum wage increase would account for only about 0.6% of the total national wage bill.
The proposal has been submitted to the Fair Work Commission, which is set to hold hearings in May before announcing any changes to take effect from the first full pay period on or after July 1.
