Media release | Thursday, 21 March 2024
A significant increase to the minimum wage, and accompanying increases to award rates, would not have a significant effect on inflation, according to new analysis by the Centre for Future Work at the Australia Institute.
The analysis, The Irrelevance of Minimum Wages to Future Inflation, examines the correlation between minimum wage increases and inflation going back to 1997.
It finds that, contrary to employer concerns, there is no consistent link between minimum wage increases and inflation in the modern Australian context.