What is the catch to Australia's awesomely high minimum wage?
Firstly, political certainty. National minimum wage and Awards (industry specific default conditions) are set annually by an independent agency currently called Fair Work Australia, so business has a much higher degree of certainty about what's going to happen. Peak union and business groups will make submissions to FWA about what is reasonable, and they'll whinge about the result, but at the end of the day can pretty reliably factor in ~2-3% increases each year.
This is in contrast to the USA where minimum wage is set sporadically by politicians. Inasmuch as minimum wages
do have dislocative and unemployment promoting effects, the uncertainty and suddenness of politically determined minimum wages is a recipe for increasing them.
Secondly, our pay looks better than it is because the Australian dollar is currently high thanks to mining commodity demand. It's around 90 US cents and previously was over $1 US) rather than historical levels closer to 70 cents. So automatically our pay looks maybe 20% better than it would otherwise.
Thirdly, this country is more expensive to live in than most of the United States in terms of rent, food, energy and consumer durables, so higher pay is needed to match that. We suffer in international comparisons once you do a purchasing power conversion.
We've still got higher pay than the US, but not as extreme as this makes it appear. In 2011 our minimum wage of about AUS $15 converted to about US $10 in purchasing power parity terms. Also bear in mind, though, that we have other legislatively guaranteed entitlements aside from just the wage value (like penalty rates for night and weekends, minimum shift breaks and gaps between shifts, penalty loadings for night and weekend work, a loading for being casual instead of permanent, etc).
Fourthly, there's a
youth wage so teenagers can be paid a rising fixed percentage of the adult Award based on age. The problem with that is that full pay doesn't kick in til 21 rather than a more reasonable 18 or 19. The idea is this promotes employment of unskilled and inexperienced workers who otherwise wouldn't be particularly attractive.
These wages only apply to people who aren't covered by another industry-specific award. For example although the minimum age is currently $16.37, in the fast food industry the award is $17.98.
There's also a
disability wage for those with assesed capacity impairments.
(Due to fuel costs and such, pizza delivery is apparently still a pretty rubbish job here pay-wise, though.)