Fair Work Australia's First Minimum Wage Decision: Context, Impact and Future (Invited Paper‪)‬

On 3 June 2010, the Minimum Wage Panel of Fair Work Australia concluded its Annual Wage Review for 2009-10. Having considered the evidence from written submissions, public consultations and a range of internal and external research, the Panel decided to increase minimum wage rates in modern awards by $26 per week with effect from 1 July 2010. The increase brings the National Minimum Wage for adult employees to $569.90 per week, or $15 per hour for a standard 38-hour week, with proportionate increases for employees paid less than the adult rates. The decision is important for several reasons relating to: the context in which it was made; the impact it will have on living standards and business costs; and for what it signals about the future of minimum wage adjustment under the Fair Work Act 2009. I review the decision with respect to each of these themes in the following sections.