Submission to the Annual Wage Review 2023-24

Profit growth has been solid and broad-based in the non-mining sector and across both large and small businesses, even in the face of a slowing economy. [...] Given the nil change in exit rates of businesses this size between 2021-22 and 2022-23, alongside the healthy growth rate in the total number of businesses operating with 20 employees or more, it is difficult to suppose there is a causal link between increases in minimum and award wages arising from the Review process and increased firm exits. [...] THE NATIONAL ECONOMY The Panel is required by the minimum wages objective to consider “the performance and competitiveness of the national economy, including productivity, business competitiveness and viability, inflation and employment growth”2 when making the National Minimum Wage Order and when deciding whether to vary modern award minimum wages in a Review.3 Additionally, in deciding whether t. [...] Both considerations are self-evidently directed to measures at the national level: the former maps the current state and the latter focuses on the aggregate (as opposed to sectoral) impact of an exercise of modern award powers.5 The Panel has taken the view that the “underlying intention of these provisions is that the Panel takes into account the effect of its decisions on national economic prosp. [...] Profit growth has been solid and broad-based in the non-mining sector and across both large and small businesses, even in the face of a slowing economy.