FX.co ★ Australia Raises Minimum Wages by 3.5%

Australia's independent wage-setting authority announced an increase in the national minimum wage by 3.5% on Tuesday, effective from July 1, following a decrease in inflation. According to the Fair Work Commission (FWC), this adjustment will raise the minimum wage to A$24.94 ($16.19) per hour, benefiting approximately 20% of the Australian workforce. This decision leads to a genuine wage increase for about 2.6 million workers earning the minimum wage. In the first quarter, consumer price inflation was recorded at 2.4%, which comfortably aligns with the Reserve Bank of Australia's target range of 2% to 3%, a decline from its 7.8% peak in late 2022. In the meantime, the unemployment rate stood at 4.1% as of April 2025. FWC President Adam Hatcher stated, "The Reserve Bank's assessment that inflation has sustainably returned to its target range suggests that this inflationary period has concluded."