Wage boost 'to help Aussies compare car insurance'

The recently announced increase in the minimum wage will give low income Australian families more options when it comes to their financial security in areas like car insurance and home insurance, it has been suggested.

Hotel housekeeper and mother of two Made Riata told the Sydney Morning Herald that the extra $26 a week would greatly ease her financial worries.

’’For more than four years no pay raise for me. We really need this,’’ she said.

’’Car insurance, house insurance, you save for six months to get them, plus saving $20 a week for a computer for the children"

Ms Riata said she earns about $540 a week, most of which goes towards the family’s $350 mortgage payment – meaning that extra money every week can be spent elsewhere.

Business groups have expressed anger at the increase, which is due to kick in next month, claiming it will put more pressure on small businesses struggling to shake off the effects of the recent global financial crisis.

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