Unions will push for a $43 weekly boost to the minimum wage, arguing the current rate forces people to live below the poverty line.
The Australian Council of Trade Unions is urging the Fair Work Commission to start with a $43-a-week increase this year, and assuming a 1.5 per cent increase in the median next year, an additional 5.5 per cent rise in 2020.
While Labor had hinted it could change the law if elected to government to influence the minimum wage set by the commission, big business has warned against compromising the independence of the tribunal.
The Australian Chamber of Commerce and Industry argues the rate has been set by an independent body rather than governments for more than a century.
ACTU secretary Sally McManus said the business lobby and the Morrison government were out of touch because they thought workers living in poverty was acceptable.
"No one in Australia should be forced to work below the poverty line but that is exactly what the current minimum wage guarantees," she said.
"Within two years, we can make sure no full-time working Australian lives in poverty while also stimulating spending and generating economic activity and growth."
Australia's minimum wage is $18.93 an hour or $719.20 per 38 hour week before tax.
Business Council of Australia chief executive Jennifer Westacott said her organisation had consistently supported an independent mechanism to set the minimum wage.
"The way to lift wages and keep them higher is by lifting productivity," she said.
"We can start by maintaining and making stronger the enterprise bargaining system, that sees workers and employers working together to boost productivity in return for changes to wages and conditions."
Ms Westacott said consumers could be hit with price rises, while only some workers would see real wages growth unless increased pay went hand-in-hand with productivity improvements.
"Employers want to grow and invest more in new jobs and higher wages, we can only do that if the settings are right for growth," she said.
