raising minimum wage

Raising Minimum Wage Would Devastate Small Businesses

Every Australian working a full-time job should be able to enjoy a comfortable life.

For that reason, Australia already has the highest minimum wages in the world. Minimum wage workers take home more pay than in Luxembourg or Belgium, who come in at number two and three respectively, according to data from CNN Money.

While raising salaries for the lowest paid workers even further sounds noble, it is also idealistic. The extra money they take home, after all, has to come from somewhere.

The small business ombudsman has hit back at Opposition Leader Bill Shorten’s pursuit of a living wage rather than a minimum wage, saying an increase would be a ‘devastating blow’ to small firms.

Let’s be quite clear that this proposal is a war on small business, not big business,’ the Australian Small Business and Family Enterprise Ombudsman Kate Carnell said in a statement on Wednesday.

Mr Shorten, in his first major speech of the year on Tuesday, argued the minimum wage is no longer a living wage and said the present system of slow, incremental increases was seeing too many working people fall behind.  

But Ms Carnell said nearly half of small business owners already earned less than the minimum wage and for those people, an increase in awards would mean job losses, limited employment opportunities and businesses closing.

She said the consequences of hiking the minimum wage would need to be thoroughly investigated, particularly the impact it would have on small businesses.

A reality check on this issue is certainly required,’ she said.

Labor finance spokesman Jim Chalmers backed his leader’s call, believing it was possible to responsibly lift the minimum wage.

It would be subject to a process via the Fair Work Commission with input from all sectors of the economy, which he thought was a good way to go about it. Mr Chalmers told Sky News:

We want to make sure that people aren’t left behind. We want to make sure that people can provide for themselves and also spend in the economy so that we can get the growth that we need’.

The Australian Tribune with AAP

The Australian Tribune with AAP

The Australian Tribune with AAP

Comments: 3

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  1. But small business are happy to exploit workers make profits. I would question any economic modelling that can prove that giving people a living wage will close many businesses. Remember to they want a tax break. This will cover it and the money they have saved by not paying penalty rates. People need to eat. There is little point to the argument of saying people do not need a liveable wage. It is akin to saying we need to make sure only the middle class need to eat.

  2. I would think talking about minimum wage levels without including the relevant “cost of living” levels in each country would be relatively meaningless. I would be interested in other peoples views on the issue.

  3. So many times we hear arguments against wage increases, particularly those going to the lowest paid amongst us. So many times, these arguments come from the upper echelons of our country – CEO’s, Business Council of Australia etc etc etc. Until CEO’s and their ilk limit their own pay increases to a level more commensurate with those at lower levels (who are the very ones copping rubbish on the front line from irate customers, from policies created by those same overpaid bigshots) their incessant bleating will bear no credibility whatsoever.