The Australian Government has introduced a minimum wage across Australia!

Yesterday, the Government voted on a new bill to introduce a minimum wage across Australia. 3 members voted in favour of the bill, with 2 abstentions. 

The minimum wage in Australia will now be 2 AUD per day. The Government’s intentions behind the new minimum wage is to make Australians richer, strengthening the economy and increasing spending in the Australian market. 

Some people are suggesting the new minimum wage does not go far enough, with calls for a minimum wage of 2.5 or 3 AUD.

A minimum wage is new to the Pacific region, with neither China nor Indonesia implementing such a policy yet. 

Other countries offering a minimum wage include Japan, which has a minimum wage of 7JPY. In return, the Japanese markets are booming, and products there fetch far more yen than they would Australian Dollars. This is an example of how increased wages can lead to increased spending. On the other hand, it could also lead to hyperinflation, if the Government doesn’t successfully control the economy. Japan however appears to be a successful example of how increasing wages can lead to a stronger economy. 

Formerly, the highest wages in Australia sat at around 2 AUD. The introduction of a minimum wage has also increased the wages of higher paying jobs.