“ACOSS is concerned that jobless households and low paid households are under strain with rising living costs and relatively low wages,” said ACOSS Executive Director Andrew Johnson.

“Taking into account inflation, the minimum wage is at the same level as it was in 1989. The Fair Pay Commission should boost the minimum wage to benefit low paid and jobless families in Australia.”

“Minimum wages are critical in determining the income of unemployed and employed households. Australia has a relatively high rate of part time and casual work and this kind of employment is often insecure so many families rely on a mix of work and welfare payments to get by. Their meagre budgets are under strain as costs of housing, petrol, education and services rise.”

“ACOSS believes there is further scope for helping families under strain and preventing child poverty by increasing minimum wages and family payments. We know that there is a strong link between wage levels and child poverty.”

UNICEF figures indicate that in the US, 25% of workers are low paid and 25% of children are living in poverty. In Australia 13% of children are living in poverty and 14% of workers are low paid.

“Lowering minimum wages is not necessary to help more people into work. People who are jobless are often the most disadvantaged Australians and face barriers like discrimination, low levels of education and work experience. The best way of moving these people into work is to increase education, training and support. Then minimum wages and family payments can help ensure low paid working people are not left behind by Australia’s economic growth.”

The ACOSS submission points out modest increases in minimum wages do not negatively impact employment. Employment rose by 18% between 1997-2005 despite increases in minimum wages awarded by the Australian Industrial Relations Commission in recent years