The South Australian Business Chamber is deeply concerned about the impact of today’s decision by the Fair Work Commission’s annual wage review, delivering an increase of 5.75% to the national minimum wage and awards.
The South Australian Business Chamber had backed its national body, the Australian Chamber of Commerce and Industry’s call for a total increase of 4% (3.5% to wages and 0.5% to super), the highest increase Australia’s peak business body has ever advocated for.
The South Australian Business Chamber CEO Andrew Kay says, “Businesses in South Australia support responsible and sustainable pay increases, but what was announced today runs the risk of embedding high inflation in the economy, putting more pressure on household budgets, creating more pain for business and ultimately lead to job losses and higher rates of unemployment”.
Today’s decision means minimum wages in Australia increase to $23.23 per hour or $882.80 per week. Combined with a further increase of 0.5% to superannuation, businesses will be paying 6.25% more to eligible employees from 1 July.
“The increase would cost South Australian businesses approximately $614 million over the next 12 months.
“Businesses who can pass costs to consumers will have no other choice but to do so, following the Fair Work Commission’s decision this morning”, Mr Kay added.
The South Australian Business Chamber’s March Quarter survey of Business Expectations reported 74% of businesses in South Australia have already been negatively impacted by inflation. The survey also detailed that 59.3% of businesses expected interest rates to continue rising, and with today’s announcement, the likelihood of this happening increases.
The South Australian Business Chamber CEO Andrew Kay is available for comments and interviews today. Contact Anthony Caldwell to book.
