"The Government's submission recommends that the Fair Work Commission ensures that the real wages of Australia's low-paid workers do not go backwards. Notably, the Government's recommendation relates only to 'low paid workers' – not to all award-covered workers," Innes Willox, Chief Executive of the national employer association Ai Group, said today.
"Also, the Government's submission does not mention the 0.5% Superannuation Guarantee (SG) increase that is operative from 1 July 2022 and the equivalent of a 1.3% increase in pre-tax income that an employee on the National Minimum Wage will receive in coming months as a result of the announced increase in the Low and Middle Income Tax Offset.
"Consistent with longstanding past practice, it is appropriate for the Commission to take into account the increase to the SG and changes to both taxation levels and tax transfer payments when determining the quantum of any minimum wage increase in the Annual Wage Review. As the Commission has consistently stated in Annual Wage Review decisions, the effect of taxes and transfers on disposable incomes of the low paid are relevant to the needs of the low paid and their relative living standards.
"Ai Group will consider the Government's submission carefully, and file a submission in response by the deadline that the FWC has set (i.e. by next Wednesday 8 June)," Mr Willox said.
Ai Group's latest Annual Wage Review submission as filed today with the Fair Work Commission is available at this link.
