CDU EXPERT: What does the national minimum wage increase mean for the everyday Australian?
Charles Darwin University
11 JUNE, 2025
Who: Charles Darwin University Lecturer in Economics and Business, Dr Bhanu Bhatia
Topics:
- How does the minimum wage increase compare to inflation?
- Does the wage increase go far enough?
- Are there risks around higher prices for consumers to offset the wage increase?
Contact details: Call +61 8 8946 6721 or email [email protected] to arrange an interview.
Quotes attributable to Dr Bhanu Bhatia:
For all National minimum wage or current award minimum wages, increasing the national minimum wage represents a real salary increase of 1.1 per cent based on the most recent annual inflation numbers, which were 2.4 per cent during the year to the March quarter 2025. However, the main factor influencing this choice was that, since July 2021, workers who depend on the national minimum wage or current award minimum wages have seen a decline in the actual worth of their pay rates.
These measures go some way towards addressing the real wage losses of the last few years. With inflation coming down, this was a golden opportunity for wage reform. If this were not taken now, low standards could become entrenched in our society. However, some argue that these changes don’t go far enough.
It is possible the change in wages will be passed on to consumers via higher prices, though some of these costs may also be absorbed in a business’s profits. Risks persist in the hospitality sector and for small businesses. This highlights the need for reforms in economic policy rather than stagnation of wages of our poorest-paid workers.
Contact details:
Sierra Haigh she/her
Communications Officer
Marketing, Media & Communications
Larrakia Country
E: [email protected]
W: cdu.edu.au
Charles Darwin University acknowledges all First Nations people across the lands on which we live and work, and we pay our respects to Elders both past and present.
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