Government calls for wage rise in face of fuel crisis

The Albanese government is recommending wage increases for minimum-wage and award-reliant workers to help with the cost of living, particularly the ongoing effects of higher fuel prices.

In a submission to the Annual Wage Review, the federal government is recommending that the Fair Work Commission award an economically sustainable real wage increase to Australia’s nearly 3 million minimum-wage and award-reliant workers.

Minister for Employment and Workplace Relations Amanda Rishworth (pictured) and Treasurer Jim Chalmers said that an economically sustainable real wage increase is consistent with underlying inflation returning to the Reserve Bank of Australia’s target band in 2026-27, and it will provide further relief to lower-income workers who are still doing it tough.

The submission comes as concerns continue about the impact of the ongoing US–Israel attack on Iran and the subsequent regional and geopolitical conflict that has ensued, including the impact on Australian jobs, and whether businesses will have to work from home again, should fuel be rationed nationwide.

Conflict in the Middle East is compounding global economic uncertainty, Rishworth and Chalmers said, and putting pressure on fuel prices, inflation, and family budgets.

“All Australian workers will also benefit from another income tax cut this year and next year, in addition to the help we’re rolling out like cheaper medicines and more bulk [billing]. This is all part of our plan to help people with the cost of living, while remaining focused on tackling inflation, boosting productivity and resilience, and navigating all this global economic uncertainty,” the pair said.

Minister Rishworth said: “Our government believes the millions of baristas, care workers, clerks, and cooks should get ahead. Low-paid workers are more exposed to unexpected financial shocks, and they experience greater financial hardship, and we support lifting their wages.

“An increase to the minimum wage can also play a role in closing the gender pay gap, given women are disproportionately represented in award-reliant jobs. Our government remains focused on getting wages moving and supporting higher living standards.”

Treasurer Chalmers said: “Workers are doing it tough right now, and that’s why we think they should get a sustainable real wage increase. With fuel prices going up and mounting pressure on families, we’re helping with the cost of living in responsible ways.

“This will help millions of workers in low-paid and award-reliant jobs deal with these rising costs, alongside all the support we’re rolling out like tax cuts and cheaper medicines.”

The government’s submission does not recommend a specific wage increase, given the Fair Work Commission’s role as an independent arbiter.