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Why is Labor now formally backing a 5.1pc increase in the minimum wage?

Shadow Industrial Relations Minister and Manager of Opposition Business Tony Burke spoke to News Breakfast’s Michael Rowland not too long ago.

He was asked why Labor is backing this 5.1 per cent increase. 

Mr Burke said Australians can’t have a situation when “everything is going up except wages” and “people keep going backwards”. He also accused the government of wanting to “deliberately” keep wages low. 

“The extraordinary thing about this story is not that Labor wants to make sure that wages keep pace with the cost of living, the extraordinary thing about this story is Scott Morrison doesn’t,” Mr Burke told the ABC.

“The outrage we’re seeing from him and his ministers at the moment as though somehow it would be a terrible thing for Australians to stop going backwards really says it all.”

What about business owners worried about how they’ll pay a potential 5.1 per cent increase?

Mr Burke said he has a “good relationship” with those businesses and that he has had “very constructive conversations” with them.

“I do have to say some of those commentators, most of them actually, for nearly a decade have been saying we can’t have wage increases because inflation is low.

“And now they’re saying we can’t have wage increases because inflation is high.”

The Chamber of Commerce and Industry has backed a 3 per cent rise …

Mr Burke said that was akin to a pay cut.

“If inflation is running at 5.1 per cent, then the figure you have just nominated there is a pay cut.”

Until yesterday, Labor’s position on the Fair Work Commission case was it wasn’t going to back any figure. Was Anthony Albanese freelancing in responding that way?

“Not at all — you heard all of us on many occasions for a long time now say people can’t keep going backward,” Mr Burke said.

“The figure yesterday is the figure that if you fall below, people are going backwards.”

Something you’ll be hearing a lot about today: wages

Yesterday, federal Labor leader Anthony Albanese backed increasing the minimum wage to be in line with inflation, which is currently at 5.1 per cent.

The ACTU has asked the Fair Work Commission to increase wages by 5.5 per cent.

That would see the minimum wage rise from $772.60 to $815.09 per week, or $42,384.84 a year.

Mr Albanese says Labor would make its own submission if it wins the election, pushing for an increase in line with the cost of living. 

“What we know is that at the last increase, that the Fair Work Commission made was 2.5 per cent, even though inflation was just 1.1,” he said.

“So we know that the Fair Work Commission has taken these issues into account, we’ve clearly said that people should not fall further behind.”

The Coalition argues a dramatic increase to wages could throw the economy out of whack and lead to higher inflation. 

Minister for Superannuation Jane Hume said the Fair Work Commission would need to consider a range of factors in its deliberations, accusing Mr Albanese of interference. 

“What’s wrong is Albanese weighing in on the independent Fair Work Commission’s decision as to what it should do with minimum wages,” she said.

“That would be unprecedented — no government should weigh in on the Fair Work Commission’s decision.”

Business groups only support a 3 per cent rise to the minimum wage.

Welcome to our live election coverage

Good morning and welcome to our election live blog! My name is Emily and I’ll be bringing you the latest updates from the campaign. 

It’s Wednesday, May 11, and we’re a week and a half out from polling day (we’re on the home stretch!). It also means the third and final leaders’ debate is tonight on Seven. As always, we’ll be bringing you all the updates here on our ABC live blog.