In its submission to Fair Work Australia’s annual wage review, the Accommodation Association of Australia argues a rise of more than 2.25% would hurt accommodation businesses in regional NSW and Queensland already reeling from recent natural disasters.
In opposing a rise of more than 2.25% the AAA also cites the lingering effects of the global financial crisis, an increase in superannuation payments from 9-12% over the next eight years and the carbon tax, due to come into effect on July 1.
The AAA wants its 2.25% cap to apply to the national minimum wage, which stands at $589.30 and minimum wages in modern awards.
“The effects and uncertainty surrounding the proposed carbon tax would be felt in particular, by small and medium-sized businesses in the accommodation sector because although the tax will be directly targeted at the top 500 polluters (and none are operators of accommodation businesses), the cost of permits for the biggest polluters will be passed through the supply chain to the accommodation industry,” the AAA submission states. “Such a scenario would preclude many businesses from consolidating on 2011, where our industry is still in recovery mode from the global financial crisis.
“The downturn in the tourism industry means predictions for trading in 2012 and 2013 are underwhelming, to say the least.”
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