However, according to McDonald Murholme, while this appears to be a positive move for low-income earners, the increase in other factors like tax and the cost of living does not actually mean they are reaping the benefits of a higher minimum wage.
Managing director Alan McDonald said: “It is claimed employees in Australia benefit from one of the highest minimum wage standards in the world; however, living costs and taxes are so high that it negates this benefit.”
A 3.5 per cent increase to the minimum wage in July 2018 saw Australia move ahead of Luxembourg. While the study did not take into account another 3 per cent increase in July 2019, Australia is likely to still top the ratings this year.
“The distribution of wealth has widened the minimum wage of low-income earners flat line over more than a decade and the high-income earners wealth grew significantly over that period,” Mr McDonald said.
“No one should believe that the minimum wage earners are well off; these statistics don’t reflect the reality of those on the low.”
Reference: ‘Higher minimum wage not a win for Australians, firm argues‘, Lawyers Weekly, Wednesday 17th July 2019.
