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ABC News
ABC News
Business
business reporter Kate Ainsworth and political reporter Tom Lowrey

Federal government backs wage increase for lowest-paid workers in line with inflation

The Fair Work Commission will consider submissions from the federal government, unions and business groups to determine the new minimum wage rate. (Unsplash: Israel Andrade)

The federal government is advocating for a pay increase for Australia's lowest-paid workers at least in line with inflation, a move business groups warn may "tip Australia into recession".

The Fair Work Commission (FWC) has commenced its annual wage review, ahead of determining the new minimum and award wage rates, which will come into effect from July 1 and directly impact the pay packets of 2.67 million workers, including 184,000 people who receive the minimum wage.

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