Low-paid workers optimistic as wages bill introduced

July 24, 2025 16:34 | News

About one in seven Australian workers will have their penalty rates increased and their employers will not be able to reduce them, under changes proposed by the Albanese government. 

One of those workers is service assistant Ruth Sumner, who for 25 years had to struggle to provide for her kids. 

Although her children have moved out, she still has to look for deals to pay for her basic needs, sacrificing her quality of life. 

“It’s sad because everything’s going up. It’s your power and everything,” Ms Sumner told AAP. 

“I look at an apple that I really like but if there’s one two dollars cheaper, I’m going to buy the cheaper one.”

Anthony Albanese and Amanda Rishworth meet retail workers in Canberra
Prime Minister Anthony Albanese and minister Amanda Rishworth met retail workers in Canberra. (Mick Tsikas/AAP PHOTOS)

She stands to benefit from a bill Labor has introduced to the lower house that seeks to enshrine higher rates of pay for award workers when they work late nights, early hours, weekends and public holidays.

If it is passed, award workers will earn a base weekend penalty rate of about $40 an hour.

While rates can vary depending on an employee’s specific award or agreement applicable to that industry, common pay rates for workers on a Sunday are double time (200 per cent) or time and a half (150 per cent).

A calculation of rates on the Fair Work Commission’s website shows a common penalty for a casual hospitality Saturday shift to be $40.85 per hour, while a Sunday shift could bring in $47.65 per hour.

Ms Rishworth said award workers deserved to have their wages protected.

“Wages of low-paid workers should not go backwards because that’s not fair and not what Australians expect of our workplace relation system,” Ms Rishworth said as she introduced the bill. 

“The bill is designed to be simple, fair, and workable.”

The Australian Chamber of Commerce and Industry said the bill was anything but simple and fair, calling it a “backwards step” and “out of touch.”

Acting chief executive David Alexander said it made negotiating wage changes harder for employers, especially small businesses who already struggle to work through the “complex” fair work act.

“Tying Australian businesses up in knots around workplace systems has the effect of strangling growth and that means less jobs and lower wages,” Mr Alexander said.

“This bill is at odds with the government’s plans to improve productivity, and instead injects more rigidity and complexity into the fair work laws.”

Employment Minister Amanda Rishworth
Award workers deserved to have their wages protected, Employment Minister Amanda Rishworth said. (Lukas Coch/AAP PHOTOS)

Peak retail and business groups also put forward proposals for large companies to opt out of providing penalty rates for staff in exchange for a base-level pay rise.

Opposition employment spokesman Tim Wilson said the coalition supported penalty rates.

“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 told AAP.

The coalition also wants to assess how the changes would interact with the Fair Work Commission, which would be required to apply the new rules.

AAP News

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