The Federal Labor Government has acted on its election commitment and introduced legislation to protect penalty rates.
In July 2025, Minister for Employment and Workplace Relations, Amanda Rishworth MP, introduced the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025.
This legislation will prohibit the Fair Work Commission from reducing overtime or penalty rates in awards.
It also prohibits substituting penalty or overtime rates that reduce workers’ take-home pay flowing from overtime or penalties they would otherwise receive.
Right now, the Australian Retailers Association is proposing to vary the Retail Award to cut entitlements, including penalty rates and overtime for salaried workers.
As the Australian Retailers Association and major employers try to cut penalty rates in the retail industry, it’s great to see the Albanese Government standing up for workers.
This proposal could cost 200,000 retail workers over $1 billion in wages and entitlements.
This legislation will help protect workers’ rights from these attacks.
This bill is currently before Parliament and we will keep members updated on its passage through parliament.