MEDIA RELEASE - Business Reacts to Wage Increase

Business SA says a 2.5 per cent increase to the national minimum wage is disappointing for many South Australian business owners.

Although the current performance of the local economy is exceeding expectations, uncertainties remain amidst the vaccination rollout and the risk of outbreaks and snap lockdowns as we have seen recently over the border.

While a delay to the increase for some Awards to 1 November is welcomed, this is far outweighed by the current risk of shutdowns.

The recent Business SA – William Buck Survey of Business Expectations found that 21 per cent of businesses expect revenues to be below 70 per cent of their pre-COVID revenue by the end of the June Quarter.

A Business SA spokesperson said “Businesses that have been hit the hardest during the pandemic such as these in accommodation, arts, aviation and tourism sectors will receive a double hit with two increases in the calendar year resulting an overall increase of 4.25 per cent."

As a result of today’s announcement, the National Minimum Wage will increase to $772.60 per week, or to $20.33 per hour. This constitutes an increase of $18.80 per week, costing Award reliant businesses a total of $212.4 million.

The Australian Chamber of Commerce and Industry Acting CEO Jenny Lambert said “This is a bitter pill to swallow for the approximately 230,000 small and family-owned businesses which dominate these particular sectors. Australians who have managed to battle on through, keep their business afloat and keep people in work now face a risky hike in wages - always their biggest cost.”

Business SA will hold a free webinar to help businesses across South Australia understand and prepare for the Annual Wage Review decision featuring practical advice from Business SA’s expert Industrial Relations consultants.

Business SA’s Annual Wage Review Webinar will be held on Wednesday 30 June from 10:30am-12:00pm. Register free here.

For media enquiries please contact Anthony Caldwell, A/Director Media and Communications on 0421 508 075