Redlands Coast Chamber of Commerce
QUEENSLAND businesses are digesting the impacts of the Fair Work Commission’s newly announced 3.5 per cent increase to the National Minimum Wage and minimum award wages, handed down as part of the 2024-25 Annual Wage Review.
Business Chamber Queensland did advocate for a 2.5 per cent rise instead, but it was not to be.
From July 1, the National Minimum Wage will rise to $948 per week (or $24.95 per hour), with modern award minimum wages also increasing by 3.5 per cent.
Employers must ensure that from the first full pay period on or after July 1, all employees are paid at or above the new minimum wage or their applicable award rate.
This will require businesses to review and update payroll systems, employment contracts, and budget forecasts.
For businesses with enterprise agreements, now is the time to check agreement terms to ensure compliance with the new wage rates.
Adding to cost pressures, the compulsory superannuation guarantee rate is also set to rise from 11.5 per cent to 12 per cent on July 1 – further increasing payroll costs for employers.
While most employers support paying staff fairly, there is growing concern among small and medium-sized businesses about the cumulative impact of rising costs.
“These sorts of changes keep coming – more costs falling on employers,” one local operator said.
“Of course, employees deserve fair pay, but government also needs to support the people creating jobs.”
Business owners point out that higher wages and superannuation costs will inevitably flow through to consumer prices.
“That cup of coffee will rise; the sandwich will rise – those costs have to be covered somewhere,” another said.
“I don’t see this helping cost of living – it creates a domino effect.”
Many also say that the frequency of industrial relations law changes is adding to business uncertainty, with few incentives currently on offer to encourage hiring or growth.
“If we could cut overheads like insurance and commercial costs, and the IR laws were fairer, businesses would have more confidence to hire and lift wages naturally,” one local cafe owner said.
“Right now, it feels like more is being dictated, with no relief.
“I won’t be taking on any more staff anytime soon, it’s just getting too hard to keep up with the all the changes.”
