The federal government has called on the Fair Work Commission to ensure the pay of low-income workers does not go backwards, in its submission on a potential rise to the minimum wage.
The government handed in its six-page submission to the commission on Friday afternoon, as the body reviews whether the minimum wage should rise above the current level of $20.33 an hour.
“Keeping wages low is no longer a position from the government of Australia, we want to make sure that wages can get moving, and the first step of that was taken today,” Mr Burke told reporters in Sydney.
“We have made clear to the Fair Work Commission in its annual wage review that the position of the government is that we do not want low paid workers to go backwards.”
The submission from the government said: “In considering its decision on wages for this year, the government recommends the Fair Work Commission ensures that the real wages of Australia’s low-paid workers do not go backwards.”
The government said it did not suggest that wages should automatically increase in line with inflation.
“The current economic circumstances are highly unusual and challenging, and the government’s submission pertains specifically to the low-paid and in the current macroeconomic context,” the submission said.
The government said in its submission the commission had increased the minimum wage in nine out of the past 10 years in line with, or above, inflation.
Prime Minister Anthony Albanese said during the election campaign he would “absolutely” back a 5.1 per cent increase in the minimum wage.
Mr Burke said the submission was not limited to those on the minimum wage, also referring to low-wage workers.
“We don’t want anyone to go backwards, but there’s a particular priority right now with respect to low-paid workers.”
The Australian Council of Trade Unions lodged a new submission to the commission following the government’s stance, after the council previously said it backed a 5.5 per cent rise.
Union secretary Sally McManus said she welcomed the government’s submission.
“Workers’ share of national income is at a record low right now while productivity is strong and profits are at record highs.”
