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Concerns raised for small businesses if minimum wage increase not ‘mirrored’ with productivity gain

The Fair Work Commission has announced that the minimum wage will increase by 3.5% from 1 July. The current hourly minimum wage for adults over 21 will increase from $24.10 to $24.95.

Minister for Small and Family Business Steve Minnikin told Bill McDonald on 4CB Mornings, “Paying extra in wages is fine as long as there’s a commensurate uplift in productivity.”

“Everyone deserves to be paid well, but you’ve got to also make sure that the small business in particular has that profitability and that productivity to be able to afford those extra costs,” The Minister continued.

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