A living wage or a living income - Looking backwards and forwards at the Australian Minimum Wage

Abstract

The Australian Federal Minimum Wage was established as a living wage for a man and his dependent family. Over time the income of this type of family has increasingly been impacted by tax and transfer policies. This is particularly marked in the past 25–30 years. Over this period the minimum wage can be seen as having transitioned from a family wage to that for a single person, with the state taking over the role of providing financially for dependents. This has been accompanied by little growth in the real minimum wage. While the living standards of this type of family reliant upon the minimum wage has increased in line with community changes, that of single persons has not. The scope for this to continue, without potentially adverse consequences, is limited and policy options for the future need to be considered. Show more