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ABC News
ABC News
National
political reporter Stephanie Borys

Federal Treasurer reasserts Labor will stick to plans to formally back minimum wage rise

Jim Chalmers has been forced to clarify that Labor has not abandoned a push to lift the minimum wage. (ABC News: Luke Stephenson)

Federal Treasurer Jim Chalmers has clarified that the new Labor government will formally advocate for workers on the minimum wage to get a pay rise.

The Fair Work Commission is reviewing the minimum wage and during the election campaign, now-Prime Minister Anthony Albanese repeatedly stated his party would make a formal submission if elected.

When asked earlier today, Dr Chalmers would not answer questions about when the government would make that submission to the independent umpire.  

"The Fair Work Commission already knows our view," he said. 

"It may be that we can supplement that with a formal submission but nobody is in any doubt about the new government's view about a decent pay rise for low wage Australians to keep up with the skyrocketing cost of living." 

But Mr Chalmers has since clarified that Labor has not backed away from the commitment.

"The point that I was making this morning was simply that the Fair Work process is currently underway and we have made our views clear," he said. 

"Of course, consistent with the public statements that we've made before, we intend to make a submission to the Fair Work process. That Fair Work process has already begun."

Wages were a key issue throughout the election campaign, with Mr Albanese saying he "absolutely" supported a pay rise of 5.1 per cent for those on the minimum wage.

He repeatedly insisted that a Labor government would make a submission to the commission, even up to the last day of the campaign, but would not say if it would include a suggested figure. 

"They will take submissions until 7 June, and that submission will say that people who are on the minimum wage can't afford to go backwards.

"The Fair Work Commission will make a decision independent of government...and if the Fair Work Commission make a decision in line with that rate, then that is something that we would welcome."

During the campaign, then-prime minister Scott Morrison repeatedly insisted any decision about wages was up to the commission, and he never put a figure on how much they should rise by. 

The former government had made a submission to the commission that included a section that outlined the importance of low-paid work.

Mr Chalmers said he would work with Mr Albanese, Finance Minister Katy Gallagher and Industrial Relations Minister Tony Burke to prepare a new submission.

"We don't want workers in Australia on the lowest wages to continue to go backwards during this cost of living crisis. So I don't think anyone at the Fair Work Commission or indeed around Australia is in any doubt about our position. 

"We want to see those low wage workers get the pay increase they need and deserve to keep up with the skyrocketing cost of living." 

The Fair Work Commission, which reviews and sets minimum wages each year, will accept submissions until June 7. 

PM heading home after high-level talks in Tokyo.
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