Tom Elliott says business owners should be “very, very worried” after the man favoured to become Australia’s next Prime Minister publicly backed a 5.1 per cent rise to the minimum wage.

Anthony Albanese made the call at a press conference in Melbourne on Tuesday, saying he would “absolutely” support a pay rise to match the current rate of inflation.

Business owners have reacted with anger to the news, saying they simply can’t afford it.

Tom Elliott said he feared a “wage-price spiral” loomed, should Labor win power and Mr Albanese follow through with that policy.

“In this case, the modern-day Fair Work Commission gives everybody a 5.1 per cent pay rise, businesses then pass that on to their customers, they push their prices up, the rate of inflation goes up again, the trade unions go back to the Fair Work Commission and ask for a six per cent pay rise and on, and on, it goes,” the 3AW Drive host said.

Press PLAY below to hear Tom Elliott explain