The Albanese government has flagged that minimum wage rises slightly above 3 per cent this year would be economically sustainable, while also admitting that high labour costs could become an inflationary risk if productivity continues to flatline.
At the annual wage review on Wednesday, Fair Work Commission president Justice Adam Hatcher asked Treasury whether wage growth forecasts of 3.1 per cent to 3.25 per cent in 2025-26 would be consistent with inflation staying in its target band of 2 to 3 per cent.
