How the minimum wage decision will affect your portfolio
Increasing wages at the same pace as inflation – without improving efficiency – opens the door to a spiral that would likely need much higher rates to reverse.
Battle lines are quickly being drawn in the debate over how much the Fair Work Commission should lift the minimum wage, with a decision likely by the end of June.
After a 4.6 per cent rise last year (a decade high), unions are seeking an inflation-matching 7 per cent lift, supported again by the federal government. Business groups are arguing for a lower increase of just under 4 per cent, albeit one of their highest opening bids on record.
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Scott Haslem is chief investment officer at LGT Crestone.
