Australian gov't asks for "cautious approach" to minimum wage review

The Australian government has warned the nation's Fair Work Commission carefully consider the minimum wage, saying an "excessive" rise in the minimum wage would have adverse effects on job creation and the economy.

In a submission given to the Fair Work Commission ahead of its annual minimum wage review, the government said a "cautious approach" to wage rises was required, and advised against a knee-jerk reaction.

The current minimum wage in Australia in 17.70 Australian dollars (13.60 U.S. dollars) per hour.

"Increasing the national minimum wage is not an efficient way to address relative living standards or the needs of the low-paid," the government's submission, published late Wednesday said.

"Excessive increases in minimum wages are likely to reduce employment in award-reliant industries, particularly for youth, and especially when wages growth elsewhere in the economy remains moderate and inflation is low."

The government said it was important for the Fair Work Commission's panel to consider the "uncertain economic outlook" in making its decision.

"The panel should take a cautious approach, taking into account the uncertain economic outlook and the need to boost employment and job creation, particularly for young people and the low-skilled."

The news come after the Australian Council of Trade Unions (ACTU) announced a push to raise the nation's minimum wage by 45 Australian dollars per week (35 U.S. dollars).

Similarly to the government, the ACTU offered a submission to the Fair Work Commission, saying that "real wages are growing at a glacial pace" and that recent wage had been "characterized by stagnation at to bottom and expansion at the top."

The commission is expected to hand down its decision on the minimum wage later this year. Endit