Australia's government will support a minimum wage increase in line with inflation this year as low-income families continue to grapple with costs of living, although the rise would be smaller as inflation eased.
In a submission to the Fair Work Commission's 2023-24 Annual Wage Review to be unveiled on Thursday, the Labor government will recommend the increase to ensure "the real wages of the low-paid workers do not go backwards", a position the government has held in the last two years.
Last July, the FWC
hiked the minimum wage by 5.75% as costs of living surged, a decision some had feared would further stoke inflation. However, there has been no sign of a damaging wage-price spiral and inflation has slowed to two-year lows of 3.4% from a peak of 8.4%.
The Reserve Bank of Australia sees inflation edging down to 3.3% by June 2024.
