Labor leader Anthony Albanese continues to attract scrutiny over his push for the minimum wage to be increased in line with the inflation rate.
The Institute of Public Affairs (IPA) estimates that a 5.1% increase in the minimum wage would add about 2.25% to the inflation rate over the next 12 months. It would, therefore, see mortgage interest rates increase by 57 basis points, which would cost the average homebuyer an additional $3,279 a year in mortgage repayments.
Daniel Wild from the IPA warns that Labor’s proposal would risk a return to “the bad old days” of spiralling inflation and surging interest rates:
