Penalty rate protections take centre stage in new Labor legislation
Casual workers in hospitality could soon see their weekend penalty rates — around A$40 an hour — locked in under new legislation aimed at preventing cuts to take-home pay.
Employment Minister Amanda Rishworth will introduce a bill into Parliament on Thursday to safeguard penalty and overtime rates by embedding them in law. The move delivers on a core Albanese government election promise and marks one of the first legislative actions in Labor’s second term.
“If you rely on the modern award safety net and work weekends, public holidays, early mornings or late nights, you deserve to have your wages protected,” Rishworth said.
“Millions of hard-working Australians rely on penalty rates and overtime rates to keep their heads above water, which is why this bill is so critical and should receive the support of both the opposition and the Greens.”
The legislation is designed to block any changes to industry awards that would result in lower pay. Under the current award system, casual hospitality workers can earn A$40.85 per hour for Saturday shifts and A$47.65 on Sundays, according to Fair Work Commission calculations.
The bill comes after business groups floated ideas for allowing large employers to swap out penalty rates in favour of higher base pay — a concept Labor has moved to shut down.
Opposition employment spokesperson Tim Wilson said the Coalition supported penalty rates but stressed the need for proper consultation.
“We will work through the legislation to make sure we consult the businesses and those it's going to impact to get the best outcome,” he said.
Wilson also raised concerns about the lack of a regulatory impact statement, noting the importance of evaluating how the changes would work alongside Fair Work Commission processes.
Jonathan Jackson, 24th July 2025
