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Pay rise or pay cut? Victoria’s wage stance puts pressure on Fair Work

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Representational Photo by ThisisEngineering RAEng on Unsplash

A real wage rise—not just an inflation chaser—is what the Allan Labor Government is urging the Fair Work Commission to deliver to the quarter of Australian workers who rely on minimum award wages.

Victoria’s submission to the Annual Wage Review was unveiled by Minister for Skills and TAFE Gayle Tierney alongside a group of retail and hospitality workers, who make up a large portion of those stuck at the bottom of the wage ladder. It’s a nudge for Fair Work to go beyond tinkering and make sure wages actually improve living standards.

The submission asks the Commission to modernise how apprentices and trainees are paid. No longer school-leavers fresh out of Year 10, these apprentices are more likely to be older, financially independent, and juggling responsibilities far beyond the training site. The government proposes a move to adult apprentice wages based on age thresholds, alongside a push for a competency-based progression system that rewards actual skill rather than just time served.

“Apprenticeships have changed—and their wages should too,” said Tierney. “In a nationwide skills shortage, we need to make it easier for Victorians to finish their apprenticeship—not harder.”

The push comes off the back of the state’s Apprenticeship Taskforce Report, all of whose recommendations have been adopted by the government. The report placed apprentice wages at the top of its priorities—a clear sign the old model is no longer working.

It’s not just about apprentices. The submission zeroes in on the structural problems that keep some demographics trapped on lower wages. Women make up 60 per cent of those on award wages and earn on average $117.40 less per week than men, according to the ABS. The government wants this addressed too—asking the Commission to factor gender, age, and structural inequalities into its decision-making.

Minister for Industrial Relations Jaclyn Symes didn’t shy away from drawing a line in the sand. “With inflation heading in the right direction—it’s time for minimum and award wage earners to get a real increase.”

This isn’t a lone crusade either. Victoria’s push matches the Albanese Labor Government’s submission at the federal level, which also calls for real wage growth for low-paid workers. But it’s where the contrast begins that the Victorian Labor Government is keen to highlight.

The Liberals, the press release says, have never once called for a wage rise for Victorian workers. Worse, the Opposition has repeatedly let slip that keeping wages low has been part of their economic thinking all along. The quote that’s become a lightning rod in this debate is the Liberal Party’s “low wages are a deliberate design feature” remark. And for good measure, the Federal Shadow Finance Minister’s comment last year that a real wage increase would be “the worst thing for Australians” is again being waved around like a warning sign.

That messaging is now being linked to Peter Dutton’s broader economic stance, especially after the Coalition confirmed a cut to Victoria’s infrastructure funding. The state government is tying this directly to job risks—a move designed to draw a clear contrast ahead of the next election.

The politics of wages is clearly heating up. And unlike in years past, this review isn’t happening in a vacuum. Australia’s job market is tight, the cost of living is still biting, and the country is on a long road out of inflationary chaos. The argument being made in this submission is that now—right now—is when workers need to see the difference in their weekly payslip.

The data backs up the urgency. One in four workers in the country is award-dependent. That’s millions of people for whom a decision in a Fair Work meeting room will directly shape whether groceries get paid for, whether rent goes up faster than pay, and whether going to work still makes financial sense.

The government’s appeal seems built on a simple premise: wage justice shouldn’t be theoretical. It should be measurable—in hours worked, in energy spent, in dollars earned. And in the case of apprentices, in whether people are walking away from vital qualifications simply because they can’t afford to stay.

The submission, which leans heavily into economic fairness, seeks not just to lift wages but to redraw who benefits most from changes to the system. That’s where it departs from previous years—it’s not only asking for a number but asking for the right people to receive it.

Victoria’s wage push joins a broader call for fairness across the country. But the sharpest message is political: the difference between the major parties, says Labor, isn’t just in rhetoric. It’s in outcomes—and in whether the person working a till, serving tables, or laying bricks will see any reward at all for their effort.

The Commission’s response to these calls will shape the bottom end of Australia’s wage market. But the battle lines are already drawn—between those pushing for pay rises and those still clinging to “low wages by design.”


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