Media Transcript: Member Advocacy on the 2026 Wage Review & Business Cash Flow

CHAMBER NT BUSINESS NEWS

5 June 2026

 

This week, the Fair Work Commission decided to increase award wages by 4.75% and the minimum wage by 6%, and we know this will significantly impact many members across the Territory, particularly alongside other rising costs and the introduction of Pay Day Super from 1 July.

Media Interview: Mix 104.9 morning host Katie Woolf spoke with Chamber NT CEO Glen Hingley about the 2026 annual wage review and its effect on business cash flow.

Date: Thursday 5 June 2026

Topics: annual wage review, payday super changes and further pressures on business cash flow.

Transcript:

Katie Woolf:
We spoke about this yesterday. It follows a Fair Work Commission decision to lift award wages by 4.75% and the minimum wage by 6%. Now, the Northern Territory Chamber of Commerce and Industry says that these increases, combined with higher superannuation obligations and upcoming payday super changes, are going to put further pressure on business cash flow.

Joining us on the line to talk more about this situation is the Chamber’s Chief Executive, Glen Hingley. Good morning to you, Glen. Lovely to have you on the show.

Now, Glen, the Fair Work Commission says these wage increases are about helping workers keep up with the cost of living. But why do you feel this decision may go a bit too far?

Glen Hingley:
Well, firstly, may I say that for all the workers, we don’t begrudge them getting a pay rise. Times are tough. The cost of living is really difficult, if you’ve got a mortgage, interest rates are going up, and you’re dealing with inflation.

But if we think about it from a business perspective, especially for small and medium sized enterprises, when interest rates go up, they go up on both their home and their business. Fuel costs affect not only getting to and from work, but also all the inputs into their business, which are rising with inflation. So, the cost of goods they buy is increasing.

Now add to that these disappointing outcomes from the Fair Work Commission. Businesses are already struggling with high inflation, high fuel costs, and rising interest rates, and this makes it even more difficult to maintain margins.

What we’ve found in our research across businesses in the Territory since the start of March is that many are still absorbing these fuel increases and are not passing them on, their margins have already been squeezed. So now, with this on top, cash flow is tight.

When we came out of the wet season (across the NT), balance sheets were already very lean. Add increased fuel costs, inflation, interest rates, and now minimum wage increases, and soon, the requirement to pay super on payday, and it becomes very challenging. 

We’ve known this was coming, but we’re warning businesses that they’ve got to be very careful with their cash flow. For some, this could potentially be a tipping point.

Katie Woolf:
Yeah, I mean, I was going to ask, how much pressure do you think businesses are already under? How big an impact could this have?

Glen Hingley:
For many businesses, particularly small retail, cafés, and restaurants, a large portion of costs is payroll, along with the cost of goods. These minimum wage increases push up both wages and the cost of goods, especially for anything that’s transported.

It gets to a point where business owners start asking themselves, “Why am I doing this if I can’t pay myself, let alone cover my expenses?”

This will put enormous pressure on businesses. We’ve had many reach out saying they are gravely concerned. They want to keep their staff and avoid making hard decisions, but in effect, rising interest rates are designed to slow the economy.

When inflation increases, measures like higher interest rates are used to take money out of the economy, and unfortunately, one outcome can be increased unemployment. Now, we’re putting more pressure back into the system, which creates a difficult cycle.

Previously, the focus was on tackling inflation while monitoring productivity. Now, productivity has become disconnected from policy direction. It’s simply tough for businesses to turn a profit, to pay themselves, meet their obligations, and retain staff they value. If they could pay more, they would, but often they just can’t.

Katie Woolf:
It sounds like a bit of a perfect storm for a lot of businesses. Are there particular industries in the Northern Territory that you think will be hardest hit?

Glen Hingley:
I think “perfect storm” is exactly the right term, Katie.

My concern is for businesses dependent on the visitor economy, whether directly serving tourists or supporting tourism operators. Rising fuel costs, both for road travel and aviation, are already impacting forward bookings across the Territory and Northern Australia.
So those businesses, especially after effectively hibernating through the wet season, haven’t had the bounce back they were hoping for. This is a vulnerable time.

Retail businesses are also under pressure. On the other hand, some sectors are still performing well, those tied to mining, energy, and defence. These are key pillars, and it’s critical we continue supporting their growth.

But the real vulnerability lies in discretionary spending. People might skip the avocado on toast and just have a coffee because prices are rising. When that happens, businesses feel the pinch and may have to reduce staff hours or roles.

Katie Woolf:
And that’s the difficult situation we could be heading into. Is there anything you’d like to see governments, territory or federal, do to help businesses manage these rising costs while still ensuring workers are paid fairly?

Glen Hingley:
At a federal level, we’re still seeing a lot of money being injected into the economy, which can add to inflationary pressure. That leads to higher interest rates, and the cycle continues, putting more strain on businesses.
So we need to be careful about how we stimulate the economy. That’s something we’ve just been discussing at a national level with the Australian Chamber of Commerce and Industry.

At a local level, one key area is regulation. Governments can make it easier for businesses by reducing unnecessary red tape. The Yes Business report released after the Red Tape Taskforce identified several ways to improve productivity and reduce barriers.

Making it easier for businesses to operate, invest, and grow will ultimately allow them to employ more people and pay better wages. But excessive regulation across all levels of government makes it harder to do business.
We need to continually review regulation and ask, “Is this still necessary? Why are we making it harder for businesses?”

There are other examples, like aspects of capital gains tax, but that’s a discussion for another day.

Katie Woolf:
It certainly feels like a lot is happening at the moment that’s making things more difficult for businesses. And you’re right, we’ll have to save that for another day.

Glen, I always appreciate your time. Thanks very much for joining us. And I’d encourage everyone to get out there, support their local businesses where and when you can.

Glen Hingley:
And if you’re a business that’s struggling, please reach out.

Katie Woolf:
Great to speak with you, Glen. We’ll talk again soon.

Glen Hingley:
Thanks, Katie. Thank you.

Listen to the full discussion between Glen and Katie Woolf »