Tyler Redway
WHILE the increase in minimum wage of 5.2 per cent will benefit workers across Australia, business owners will not be so lucky in avoiding the extra costs.
Mount Gambier Chamber of Commerce president Hayley Neumann said the wage increase, which applies from today, would bump up day-to-day operational costs for businesses such as Work Cover, and superannuation which also increases today from 10 per cent to 10.5 per cent.
“They are probably going to have to look at putting up the prices of their products to cover it,” Ms Neumann said.
“They have probably tried to [cut costs for heating or electricity] before but at the moment it’s really unpredictable.
“Heating and electricity is really costing them because there is so much change with it.”
She said it would be unlikely that the change would impact how new workers are hired due to the current staff shortages meaning there is still a large demand for employees.
“I think if you are looking for people, you will probably be offering a little bit more at the moment because there are just not as many people available or willing to work,” she said.
“There is such a staff shortage at the moment so a lot of businesses are paying above award anyway.”
Ms Neumann added the changes have the potential to affect hours of trade, particularly in retail and hospitality industries.
“Potentially, business owners, especially in the retail and hospitality industry, may look at where they are most profitable and when staff can be available when they are not costing as much for them,” she said.
“On the other hand, people will have more money to spend but it’s a great life cycle for the dollar because their cost of living is also going up.”
Sorrentos Café owner Amanda Hudson said all businesses are currently feeling the pinch and hoped people would keep showing support to the business as the costs of living continue to increase.
“That’s the only way all small business survives is through loyalty of our customers and the support from the town,” Ms Hudson said.
“It’s definitely gonna hurt, especially coming off the back of Covid and then with this on top of it has a flow on effect for every business.”
Ms Hudson added the café had not put its prices up yet but eventually the extra cost would have to be passed onto customers.
“Everyone is feeling the pinch, so we all do the best we can to keep our prices low,” she said.
Ms Hudson mentioned 5290, the function room directly adjacent to the café, was also affected by this increase.
“With everything going up, we have to put little things like room hire and beer prices up so we don’t get hurt too much,” she said.
“I will try my hardest to keep those hours for the staff I have and look after them.
“I have to because their cost of living is going up so they have to be paid accordingly.”
