The Australian government has lodged its submission to Fair Work Australia’s 2010-11 Annual Wage Review, recommending that any increase to minimum wages be in line with cost of living and other economic changes.

Acting Prime Minister and Treasurer Wayne Swan acknowledged that many Australians are having financial difficulties and the need to consider this when lifting wages.

“We know plenty of Australians are doing it tough, particularly those on modest incomes, and we need to ensure cost of living pressures are taken into account by Fair Work Australia,” Mr Swan said.

Senator Chris Evans, Minister for Workplace Relations, welcomed the opportunity to make a submission to the annual wage review.

“The minimum wage is a key part of Australia’s safety net and helps to ensure that people are able to support themselves and their families,” he said.
The minimum wage case covers around 1.36 million, or just over 15 per cent of all Australian employees.

“The Australian economy is performing well and it’s the Government’s strong view that the low paid should not be left behind,” Senator Evans said.

“Wages growth across the economy remains contained, inflation is also moderate and Australia’s productivity is growing - not falling. These economic indicators show that the economy can afford a fair increase to the wages of the lowest paid.”

Fair Work Australia is required to consider minimum wages cases with regard to the state of the economy such as employment growth, productivity and inflation as well as the needs of the low paid.