Minimum wage increase of 5.2 per cent is a ‘risk’ for the economy

Australian Chamber of Commerce and Industry CEO Andrew McKellar says the minimum wage increase of 5.2 per cent is, at this point in time, “a risk” for the Australian economy. He said ACCI would prefer to be “a bit more cautious” than the government on the matter of increasing wages.“We’re seeing a number of pressures building on business, we’re seeing acute labour shortages, we’re seeing real supply chain disruptions, energy prices spiking up, and now we see that inflation risk present as well,” Mr McKellar told Sky News Australia. “Our calculation is that this increase will result in an additional cost to the affected businesses of about $7.9 billion a year -that’s got to either be absorbed on the bottom line or passed through to consumers.”