Opposition Leader Anthony Albanese has been accused of “policy on the run” after he backed a 5.1 per cent minimum wage pay rise to match the inflation rate.

The Labor leader has been campaigning on wage rises.

But Defence Minister Peter Dutton says it’s “pretty disturbing” policy from the opposition.

“It’s essentially made up on the run, it was in response to a question asked by a journalist who put the figure and he adopted it straight away,” he told Scott Emerson.

“Now he has stepped back from that and today Mr Albanese is saying he didn’t say it.”

He says there is no economics behind it, and it would result in higher interest rates.

Press PLAY below to hear Mr Dutton’s response

Scott Emerson says Labor has been trying to defend his take today.

He says there’s no explanation as to how small businesses will pay.

Press PLAY below to hear Scott explain more