Increase to Australia’s national minimum wage

Increase to Australia’s national minimum wage

On 31 May 2016, the Fair Work Commission lifted the Australia’s national minimum wage by 2.4 per cent, constituting an increase of $15.80 per week for the country’s lowest paid workers.

The increase will see Australian businesses paying $821.60 more per year per employee on the minimum wage.

The national minimum wage will be increased from $17.29 to $17.70 per hour or $656.90 to $672.70 per week, and is set to take place from the first pay period to commence on or after 1 July 2016.

More than 1.8 million people who are on the minimum wage will receive the increase from the beginning of July. A robust economic climate is said to be the reason behind the modest increase to Australia’s lowest paid workers, following strong labour market conditions and low inflation and wage growth rates.

However, business groups and unions have called the increase inconsistent and disappointing, pointing out that the rise makes for little change when in line with the rates of inflation.


If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.

Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.

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