What is the real cost of the recent 5.2% rise?
Andrew McKellar, the head of the
Australian Chamber of Commerce, described the July 2022, 5.2% increase ($40 per week) to the Minimum Wage as a “very significant risk” and predicted it would add $7.9 billion in costs to Australian businesses.
Will these costs be passed on to the consumer in higher prices?
Prime Minister Anthony Albanese, when small business owners complained about their increasing costs, said: “This is $1 an hour ..These people (minimum wage earners) are really struggling”.
I can’t help wondering if he will also recommend increasing prices to help those people (small business owners) who are also really struggling”. Many of these businesses needed time to recover from the Covid related closures and drop in trade etc.
In other wage related news, Members of Parliament are also getting a pay rise, with Anthony Albanese’s salary rising to $564,000. The PM’S salary was $549,250 in May. An extra $283 per week.