Government asks Fair Work Commission for real wage rise for 3m Aussies

Three million Australians struggling to make ends meet on the minimum wage are in line for a real increase in pay under a government submission, Treasurer Jim Chalmers has revealed.

Three million Australian struggling on the minimum wage would get a “real’’ pay rise under a Federal Government submission to the Fair Work Commission, as the Treasurer again batted off fears about his super tax on the wealthy.

Treasurer Jim Chalmers announced the submission yesterday but refused to put a percentage figure on the claim, however with inflation running at 2.4 per cent it would be above that level.

He meanwhile would not be drawn on whether the government would further extend its $150 electricity rebate, which was due to run out in weeks but would now end by Christmas.

The State Government is currently offering public servants including nurses and police 3 per wage cent rises, which their respective unions have rejected for claims up to 5 per cent a year.

The “real’’ wage increase announced by Mr Chalmers compared with 4.5 per cent being pursued by the Australian Council of Trade Unions and, at the other end, a modest 2.5 per cent being sought by the Australian Retailers Association.

The news came as Mr Chalmers again fended off fierce attacks about its proposed super tax slug on well-off Australians.

Mr Chalmers announces the pay rise submission at Strathpine. Picture David Clark

The tax on unrealised capital gains for those with $3m or more in superannuation balances would not be indexed, leading to fears it would capture people with much lower super balances in coming years.

Mr Chalmers shrugged off criticism from the nation’s largest retail boss, Gerry Harvey, who described it as “stupidity of the highest order’’ and fears from wealth advisers that many people were already withdrawing money from their superannuation to invest elsewhere, potentially even offshore.

He reiterated that the super slug was “modest’’ and had been supported by some economists, and said it was standard not to index such a tax because future governments routinely adjusted tax thresholds.

“We’ve made a detailed submission today (Friday). We put a lot of effort, a lot of thinking, we applied a lot of consideration to the submission that we made but we don’t put a number on it like other groups do,’’ he said.

“The Fair Work Commission has provided decent pay increases for Australians who are low paid or on awards (so) we hope to see a real wage increase.’’

When asked if the government’s submission could put upward pressure on inflation after it had only recently dropped to within the Reserve Bank’s preferred band of 2-3 per cent, he noted that the government had twin objectives on containing inflation and improving living standards, including wages.

He and Treasury officials had consulted with Reserve Bank Governor Michele Bullock on the submission.

“The most important feature of today’s submission is we are seeking an economically sustainable real wage increase for Australians on awards,’’ he said.

“This is all about ensuring that three million Australians get the decent pay that they need and they deserve to provide for their loved ones.’’

Mr Chalmers said unemployment was at historically low levels, inflation was back under control and recent figures showed wages had begun to grow, delivering real rises, while coming tax cuts would also help address affordability.

Originally published as Government asks Fair Work Commission for real wage rise for 3m Aussies