The Australian Council of Trade Unions (ACTU) will push for the minimum wage to be replaced by a “living wage”, which would be set at 60% of the median wage, in line with UK wage targets. ACTU secretary Sally McManus argues that three million Australians are living below the poverty line due to the minimum wage system, and notes that the Fair Work Commission had conceded that the 3.3% increase in the minimum wage in 2017 will still leave many workers in poverty. McManus adds that a living wage should be high enough to ensure that families can pay for necessities as well as any unexpected expenses. From The Canberra Times:
In 1999 the minimum wage fell below 60% of the median wage and continues to lose ground [Median wage shown in dark blue; 60% of median wage in light blue; and current minimum wage in yellow]:
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
