Treasurer backs ‘substantial’ minimum wage raise on eve of Fair Work Commission decision

Australia’s Treasurer Jim Chalmers has called for a ‘substantial’ increase to the minimum wage, set to be decided by the Fair Work Commission on Tuesday at 10am. The current minimum wage is $24.95 per hour, or $948 per week, with the government’s submission urging a real wage rise for millions of workers. Chalmers, speaking from Brisbane, emphasized that fair pay is key to easing cost-of-living pressures, though he acknowledged inflation at 4.6% may limit the increase. The Australian Council of Trade Unions (ACTU) has requested a 6% pay rise for 3 million award wage workers, while the Australian Chamber of Commerce and Industry has asked for a more moderate 3.5% increase. The Commission, which operates independently, will consider submissions from both sides before announcing its decision. Any approved raise would take effect from July 1. Chalmers also urged the opposition Coalition not to oppose upcoming tax reforms, including changes to capital gains tax discounts and negative gearing, which he described as critical for workers and first-home buyers. He criticized the Coalition for blocking similar measures in 2025 and accused them of ‘weaponizing’ scare tactics against the government’s economic policies. The Treasurer highlighted the opposition’s $110 billion in unfunded commitments over the next four years, warning their approach could worsen deficits and inflation. The decision comes as Australia debates broader economic reforms, with Chalmers framing the Fair Work Commission’s ruling as part of a ‘big week’ for the economy. The government’s push for wage growth and tax relief contrasts with the opposition’s stance, which Chalmers claims prioritizes maintaining the status quo in housing and taxation.