Charities say the increase in the national minimum wage is "a start" but that families in need will continue to struggle to make ends meet with the cost of living continually rising.
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The national minimum wage will sit at $812.60 per week, or $21.38 per hour, up from $772.60 a week, or $20.33 an hour.
Mission Australia program manager for Albury, on the NSW-Victorian border, Amanda Greenhow said the increase needed to double in order for families to afford private rentals and the general cost of living.
The charity works with families on two incomes that still struggle to make ends meet, regardless of whether or not they are on minimum wage.
"It's a start but we do need to see more," Ms Greenhow said.
"Talking to the families we support, even those that aren't on minimum wage, it's so hard to make ends meet.
"Even if you are just on minimum wage, you're very unlikely to even be successful in getting a private rental in the current market."
She also said access to allied healthcare and medication that "play a big part in being able to make ends meet" needed to be factored in.
Albury Wodonga Regional FoodShare's Katrina Pawley said the increase in the minimum wage would effectively be consumed by the rising costs of basics, like food.
"Those in the community who are on the minimum wage, many of whom have needed additional support, will still need the help of organisations like FoodShare," she said.
"This is because of the extraordinary surge in inflation, particularly in relation to fuel, energy and food costs, that mean that the increase of $40 per week will be swallowed up."
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Business Wodonga chief executive Graham Jenkin said businesses already paid wages that are "above award" to keep employees.
Albury Wodonga Cleaning Service owner David McNamara said the increase would not affect his bottom line: "I pay everyone higher than that," he said.
Business NSW Murray-Riverina regional manager Anthony McFarlane said the increase would add pressure for embattled businesses.
"This increase is going to take the wind out of the sails of a number of business owners," he said.
"In the short term it seems that prices will continue to rise as businesses need ways to cover this dramatic rise in staff costs."
Caroline Tung
Since moving to the Border, I have grown to love the community and telling stories of its extraordinary people. I previously worked in Gladstone, Sydney and Melbourne. In 2019, I was awarded the Walkley Foundation's Jacoby Walkley Scholarship for TV journalism. 2018 Melbourne Press Club Quill Awards finalist. Monash University Master of Journalism graduate.
Since moving to the Border, I have grown to love the community and telling stories of its extraordinary people. I previously worked in Gladstone, Sydney and Melbourne. In 2019, I was awarded the Walkley Foundation's Jacoby Walkley Scholarship for TV journalism. 2018 Melbourne Press Club Quill Awards finalist. Monash University Master of Journalism graduate.
