Some initial business group reactions are beginning to emerge following the announcement of the 2026 Fair Work Annual Wage Review.
The Australian Retail Council (ARC) says the Fair Work Commission’s decision to increase minimum and award wages by 4.75% will significantly increase labour costs for retailers already navigating weak consumer demand, rising operating expenses and some of the most challenging trading conditions in recent years.
“ARC Chief Legal & Industrial Relations Officer Lindsay Carroll said retailers value their employees and recognise the importance of fair wages, but decisions of this magnitude cannot be viewed in isolation.
“Retailers support fair wages and recognise the contribution retail employees make every day, but this decision comes on top of a growing list of cost pressures that businesses are already struggling to absorb,” Ms Carroll said.
“Labour is one of the largest costs in running a retail business. Combined with rising energy, rent, insurance, freight, compliance and security costs, this decision will place additional strain on already thin margins across the sector.”