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The cost of doing business is about to increase in one of the most lucrative retail markets in Australia.

The West Australian Industrial Relations Commission is set to bump up the full-time adult minimum wage and state awards by $20 per week.

This will convert to a minimum full-time wage of $665.90 from July 1.

Last week, the Fair Work Commission increased the national minimum wage by three per cent to $640.90 per week.

The increase has split opinion in the West.

Western Australia premier Colin Barnett has argued the award structure will disadvantage small businesses.

Barnett said major retailers such as Coles and Woolworths can negotiate enterprise agreements with unions to offset lower weekend and night penalty rates with higher hourly rates during the week.

He said more needed to be done to offer greater support for smaller operators.

Meanwhile, Unions WA secretary Meredith Hammat said growing inequality is a big problem in the state and decent minimum wages and award are necessary.

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