Proposed minimum wage hike ’savage’ for small business
The Australian Small Business and Family Enterprise Ombudsman is firmly opposed to Labor’s proposed increase of minimum wage, saying it would only serve to damage small business.
In a statement, Kate Carnell said the benefits and consequences of upping minimum wage need to be "thoroughly investigated." In particular, the impact on small business, as opposed to just employees who would temporarily benefit from the rise, need to be appropriately assessed.
“Nearly half of our small business owners already earn less than the minimum wage and for these people, an increase in awards will mean job losses, limited employment opportunities and businesses closing," Ms Carnell said.
“The sentiment coming through this morning from small business is that they are already doing it tough.
“They are saying they would like to pay themselves and their employees more, but are literally struggling to pay their ever increasing business bills.
“When 97 per cent of Australian businesses cannot afford to employ more people, the spark of confidence and potential for economic growth we are seeing will be extinguished.”