![\"Patrick](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/06\/Patrick_Commins.png\")
Patrick Commins<\/p>\nNearly 3 million workers to receive a 4.75% pay risePatrick Commins<\/p>\n
Nearly 3 million workers will receive a 4.75% pay rise after the Fair Work Commission handed down its annual minimum wage decision.<\/p>\n
Unions had demanded a higher 6% pay increase after last month\u2019s budget projected inflation reaching 5% in the year to June. A peak employers\u2019 association, the Australian Chamber of Commerce and Industry, was calling for a 3.5% increase.<\/p>\n
The government estimates that fewer than 80,000 Australians are paid the current national minimum wage of $24.95 an hour, or $948 for a 38-hour working week.<\/p>\n
But the change in the minimum wage affects about 2.8 million employees who have their pay set by an modern award.<\/p>\n
Cost of living has been the No 1 issue weighing on Australian households since inflation tore through the economy in the wake of the Covid-19 lockdowns.<\/p>\n
The previous minimum wage increase was 3.5% for 2025-26.<\/p>\n
Inflation was 4.2% in the year to April, according to the latest Australian Bureau of Statistics figures, and the budget also predicted consumer price growth could push beyond 5% should the Middle East conflict extend further and oil prices climb higher for longer.<\/p>\n
With the Reserve Bank warning it may have to hike interest rates further to squash any signs an inflationary mindset has taken hold of the country, Jim Chalmers, the treasurer, has called for a \u201creal\u201d wage increase, but added that it also needed to be \u201csustainable\u201d.<\/p>\n
Share<\/a><\/p>\n Updated at\u00a020.25 EDT<\/p>\n Key events<\/p>\n Older Australians waiting months for support at home<\/p>\n Senate estimates has heard there are 100,191 elderly people waiting for support at home funding that they have been approved for, but have not yet received.<\/p>\n People waiting for high priority support are waiting for an average of 1.3 months, those at a medium priority are waiting an average of almost eight months, and those waiting for a standard level of care are waiting more than 10 months, estimates heard.<\/p>\n Department of health and ageing staff said while high and medium priority wait times had decreased, standard support wait times had increased.<\/p>\n Share<\/a><\/p>\n Wage rise \u2018will be too much to bear\u2019 for some small businesses says industry group<\/p>\n The reaction to the fair work decision is coming in thick and fast \u2013 it\u2019s a decision that has significant political implications at a time when the economy and cost of living is firmly in the spotlight.<\/p>\n The Australian Chamber of Commerce and Industry\u2019s David Alexander is in the Parliament\u2019s mural hall \u2013 which as Patrick Commins noted earlier \u2013 is jam packed with advocates and pollies waiting to talk about the goings on of the day.<\/p>\n Alexander says that the FWC\u2019s decision could lead to some businesses raising their prices, which would add to inflation, or be a tipping point for others.<\/p>\n double quotation markFor some small businesses, this will be too much to bear. So they\u2019re being asked to wear an increase in their wage costs of 4.75%. So for some businesses, they will pass that on, and it\u2019ll end up in inflation. For others, they\u2019ll wear it themselves – it could be the tipping point for some businesses. Others will scale back their investment intentions. So this is not good news for the business community.<\/p>\n Share<\/a><\/p>\n \u2018A really good outcome\u2019: ACTU welcomes minimum wage decision<\/p>\n The Australian council of trade unions secretary, Sally McManus, has welcomed the fair work commission\u2019s decision to increase the minimum and award wages by 4.75% at a press conference in Sydney.<\/p>\n She says the decision to award a 6% increase to 100,000 of the lowest-paid Australians. The ACTU had been pushing for a 6% wage rise for all minimum-wage workers.<\/p>\n McManus says:<\/p>\n double quotation markThis is a really good outcome for everyone struggling with cost of living, in particular of course lowest-paid Aussies are the ones that are struggling the most with cost of living and they need this pay rise, absolutely.<\/p>\n She says the \u201conly spanner in the works\u201d is the US president, Donald Trump, and the conflict in the Middle East which could continue to fuel domestic inflation.<\/p>\n double quotation markHopefully, if the war ends, this will mean that throughout the whole calendar year that people will keep ahead of the cost of living.<\/p>\n Sally McManus in 2023. Photograph: Dean Lewins\/AAPShare<\/a><\/p>\n Updated at\u00a021.32 EDT<\/p>\n Greens senator slams minimum wage decision<\/p>\n Greens senator Barbara Pocock has slammed this morning\u2019s 4.75% minimum wage increase, saying the Fair Work Commission had \u201cdecided to erode the wages of some of the lowest paid workers\u201d.<\/p>\n \u201cThe Fair Work Commission\u2019s decision today amounts to a real wage cut for millions of Australians,\u201d she said in a statement.<\/p>\n double quotation markEven with this 4.75% increase in the minimum wage, low-paid workers still face an uphill battle as wages have failed to keep up with inflation.<\/p>\n Since Labor came into power, real wages have decreased by 1% while rents have increased by more than 22%. How on earth can renters keep a roof over their head?<\/p>\n Pocock did not mention the higher 6% for the roughly 100,000 lowest paid employees.<\/p>\n Business groups and unions are due to front the press pack this morning, but there\u2019s a bit of a traffic jam in Parliament house\u2019s mural hall – a favourite spot for media conferences.<\/p>\n The Coalition says it \u201csupports the independent process to determine the minimum wage increase of 4.75%\u201d, but shadow minister for employment, Jane Hume, added:<\/p>\n double quotation markThere is little comfort in a wage increase if Labor\u2019s inflation simply eats it away.<\/p>\n Share<\/a> Coalition to vote against Labor\u2019s tax changes<\/p>\n Angus Taylor\u2019s opposition has confirmed it will oppose Labor\u2019s changes to negative gearing and the capital gains tax ahead of debate in the lower house on Tuesday.<\/p>\n The Coalition resolved its position at a party room meeting this morning, which was hardly surprising given the opposition has vowed to repeal what it describes as \u201ctoxic taxes\u201d if he wins the next election.<\/p>\n Labor has included its $250 \u201cworking Australians tax offset\u201d <\/a>in the same legislation, which is a measure the Coalition supports but will be forced to vote against given its opposition to the wider package.<\/p>\n Guardian Australian understands the opposition will seek to amend the bill to instead include its proposal to index the tax brackets to inflation.<\/p>\n That attempt will fail given Labor\u2019s numbers in the lower house but the Coalition will push ahead regardless, hoping to create the impression that the government is opposed to combating bracket creep.<\/p>\n Share<\/a> Health department defends internal testing of aged care algorithm<\/p>\n Independent Senator David Pocock had grilled Department of Health and Aged Care officials in Senate estimates about creating an algorithm used to assess the home care needs of older Australians in-house, and testing it internally without consulting any aged care advocates or experts about the final version of the algorithm.<\/p>\n The department confirmed it validated the algorithm in-house.<\/p>\n Department officials said while the final algorithm was not consulted on, it had undergone many reiterations and assessments before being finalised.<\/p>\n \u201cWe have tended to move away from kind of end-point evaluation of the final product to think about what are all the steps on the way through that have led to give confidence that something leads to the right outcome,\u201d Pocock was told.<\/p>\n David Pocock in Senate estimates last week. Photograph: Lukas Coch\/AAP<\/p>\n Greg Pugh said the department ran the algorithm through a process of refinement on more than 200,000 completed assessments over 2024 and 2025 … \u201call of that work ensured that those algorithms would be achieving those reliable outcomes when support at home commenced,\u201d he said.<\/p>\n Pocock said the current algorithm in its final, current form should also have been clinically assessed.<\/p>\n He gave the example of an experienced geriatrician who contacted him about a patient with significant visual impairment who was assessed by the algorithm as needing a level two support package, \u201cbut any experienced clinician could see that the man needed a level four\u201d.<\/p>\n Because of inadequate support, the man\u2019s daughter has now moved in with him, Pocock said, \u201cand while he waits for reassessment, she\u2019s using up her long-service leave because he\u2019s obviously now at significant risk of injury\u201d.<\/p>\n Pugh said it was not appropriate to \u201creadily dismiss all of the professional clinical work\u201d that went into designing the assessment and algorithm before the final version was implemented.<\/p>\n Share<\/a><\/p>\n Updated at\u00a021.19 EDT<\/p>\n Former Labor minister launches public Aukus inquiry<\/p>\n The former Labor minister Peter Garrett has launched the public inquiry into the Aukus nuclear submarine agreement, alongside independent MPs David Pocock and Andrew Wilkie.<\/p>\n Garrett says he sees no evidence that the US military industrial base has sufficient output to build submarines for Australia \u2013 putting at risk the costly deal with Australia and the UK.<\/p>\n Garrett will have four fellow commissioners for the five-month inquiry: former chief of defence Chris Barrie, former Western Australian premier and Keating government minister Carmen Lawrence, as well as the Australia Institute\u2019s co-CEO Leanne Minshull and Karina Lester, a Yankunytjatjara community leader.<\/p>\n The inquiry is due to report by the end of October.<\/p>\n Share<\/a><\/p>\n Updated at\u00a021.14 EDT<\/p>\n Fair Work Commission president \u2018regrets\u2019 no real pay increase for award workers<\/p>\n The Fair Work Commission\u2019s president, Justice Adam Hatcher, described it as \u201cregrettable\u201d that this morning\u2019s minimum wage decision for a 4.75% increase could not deliver a real pay rise for the millions of workers on award wages.<\/p>\n Hatcher said \u201ca fundamental consideration\u201d was that most employees on modern awards \u201care still in the position that their wage rates in real terms remain lower than what they were in July 2021 prior to the post pandemic spike in inflation\u201d.<\/p>\n double quotation markThe real wage gap \u2026 has particularly affected the living standards of the low paid and their capacity to meet their needs.<\/p>\n This was the background to the higher 6% increase in the pay rates of roughly 100,000 employees on the very lowest wages.<\/p>\n The RBA forecasts inflation will hit 4.8% by June, and Hatcher said \u201cit would now take a wage increase of well over 5% to close the real wage gap\u201d.<\/p>\n double quotation markWe have concluded, regrettably, that it would not be practicable or responsible in the current uncertain circumstances to award a real wage increase for employees reliant on modern award wage rates that would be sufficient to close the real wage gap entirely,\u201d he said.<\/p>\n However, we consider that we should at least ensure that modern award-related employees generally are not worse off in real terms than they were as at one July 2025, and that we should also take additional measures to protect the position of the very lowest paid workers under modern awards.<\/p>\n Share<\/a><\/p>\n Solomon Islands prime minister attends welcome to country in Canberra<\/p>\n The Solomon Islands prime minister, Matthew Wale, is in Canberra this morning ahead of high-level meetings and has attended a welcome to country ceremony.<\/p>\n Wale replaced the former PM Jeremiah Manele<\/a>, who was ousted from power in a no-confidence vote earlier this month. Wale has long advocated a more cautious approach on ties with Beijing and is expected to push for a closer security relationship with Australia and the United States in office.<\/p>\n He will attend talks with the prime minister, Anthony Albanese, on Wednesday.<\/p>\n Solomon Islands prime minister Matthew Wale (R) attends a Welcome to Country ceremony in Canberra. Photograph: Hilary Wardhaugh\/AFP\/Getty Images Photograph: Hilary Wardhaugh\/AFP\/Getty ImagesShare<\/a><\/p>\n Updated at\u00a021.13 EDT<\/p>\n No consultation before aged care algorithm was implemented<\/p>\n Greg Pugh, from the Department of Health<\/a> and Aged care, confirmed in Senate estimates that no aged care provider, advocacy group or expert was consulted when the government made the decision to remove the ability for aged care assessors to override the outcomes of an aged care assessment tool.<\/p>\n The Integrated Assessment Tool (IAT) involves an assessor asking an older person questions about their physical, social and personal circumstances. An algorithm then determines the level of support and funding for home support that person is entitled to.<\/p>\n The department\u2019s user manual states that assessors must accept the IAT\u2019s classification outcome when assigning home support, with assessors telling Guardian Australia<\/a> their role had effectively been reduced to data entry.<\/p>\n![\"Melissa](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/06\/Melissa_Davey2.png\")
Melissa Davey<\/p>\nPatrick Commins<\/p>\n![\"Dan](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/06\/Dan_Jarvis-Bardy.png\")
Dan Jervis-Bardy<\/p>\nMelissa Davey<\/p>\n![\"Tom](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/06\/Tom_McIlroy.png\")
Tom McIlroy<\/p>\nPatrick Commins<\/p>\nMelissa Davey<\/p>\n