Industry warns ’small business can’t afford it’ after Albanese backs 5.1% minimum wage rise

Cost of living pressures and wage stagnation have emerged as the most important issues for voters ahead of the 21 May election. Photograph: Bloomberg/Getty Images

Employers have warned against “unaffordable” wage increases after Anthony Albanese backed a 5.1% minimum wage rise to keep up with inflation.

Despite the warnings, the Australian Industry Group has raised its own submission to the Fair Work Commission from 2% to 2.5%, while the Australian Chamber of Commerce and Industry has asked for low-paid workers to get a 3% rise.