MPs Debate as Australia Set for Minimum Wage Increase on July 1

An Australian politician told parliament that continual wage rises under Labor were a sign the nation was in financial distress.

Australian dollars are seen in an illustration photo Feb. 8, 2018. Daniel Munoz/Reuters

Federal Labor has been accused of taking a symptom of its poor economic management, and just repackaging it as a gift to the people of Australia.

The claims were made by Member for Casey Aaron Violi during Parliament on June 24, as part of the debate around increasing the nation’s minimum wage.

From July 1, the nation’s minimum wage will increase by 3.75 percent—bringing minimum wages to $915.90 a week or $24.10 per hour.

Labor MP and Member for Spence Matt Burnell moved a motion to support the wage increase, saying it would help millions of Australians trying to get ahead in life.

Prime Minister Anthony Albanese spoke about the move briefly during Questions Without Notice, where he expressed support saying it would be a pay rise for 2.6 million Australian workers.

But in a colourful speech, the centre-right Liberal Party’s Mr. Violi likened the move to burning down someone’s house before offering them a casserole.

He accused Labor of taking credit for the decision made by the Fair Work Commission, which was responding to ongoing inflationary pressures—something he said was “home-grown” under Labor’s watch.

Mr. Violi said wage rises were crucial when the cost of living was on the rise, but questioned Labor’s pride in wages increasing more than at any other time during the past three years.

“Well done—that’s because inflation is going through the roof, the cost of living is out of control,” he told Parliament.

“It is the equivalent of burning someone’s house down, taking them a casserole for dinner and saying: ‘Sorry I burnt your house down, here’s a casserole, please be thankful, please be grateful.’”

“The reason the minimum wage has to go up so much is because inflation is continuing to grow and grow and compound and it is ‘home-grown’ as the [Reserve Bank of Australia or RBA] treasurer said.”

Mr. Violi cited RBA analysis from last week showing the nation’s budget had been expandatory and that an expandatory budget coincides with inflation and puts pressure on all Australians.

“All we get from those opposite is spin and politics and taking credit for an independent Fair Work Commission,” he said.

Labor Lobbied for Wage Increase: MP

Labor Member for Chisholm Carina Garland rebutted Mr. Violi’s take on wages and said the Coalition should have backed wage increases while in government.

She said since Labor had come to power, workers received $143.30 a week more.

Ms. Garland said the increases were helping some of the lowest paid workers, including those in child and aged care, where a majority of workers were women.

The MP denied Labor was a passive player in the move to secure higher wages, saying her party had recommended wage rises to the Fair Work Commission.

“We have consistently advocated for an increase to the minimum wage both before we were in government and since, unlike those opposite who support plans to supress wages. I think it’s important that we don’t forget that for one moment,” she said.

Ms. Garland said the party believed the best way to fight cost of living pressures was to increase wages and help people “get ahead” and spend more money in their communities.

She highlighted the party’s move to introduce cheaper childcare, medicines, tax cuts, and increasing support payments.

Australian Bureau of Statistics wages data in 2023 showed the average weekly wage for men was $2074.20, while for women it was $1814.90.