Millions of workers across Australia will have their penalty and overtime rates shielded under landmark legislation introduced to Parliament today by the Albanese Labor Government, aimed at strengthening the industrial safety net and easing cost-of-living pressures.
Prime Minister Anthony Albanese said in a statement the move reflects his government’s core priority. “Our number one focus is continuing to deliver cost of living relief to Australians,” he said.
“Protecting penalty rates for millions of workers is an important part of that – making sure Australians can earn more and keep more of what they earn.”
The Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025 seeks to stop any future variations to modern awards that would reduce or eliminate employee entitlements to penalty and overtime pay.
Workplace Relations Minister Amanda Rishworth added that the legislation would directly impact approximately 2.6 million award-reliant workers, many of whom are employed in industries such as hospitality, retail, health and aged care.
“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.
“This legislation will prevent award variations from reducing or removing penalty and overtime rates.”
She emphasised that many Australians depend on these additional rates to stay afloat amid rising living costs.
“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 Government argues that penalty and overtime rates are not luxuries, but fundamental components of the award safety net – a lifeline especially for low-paid and vulnerable workers.
The Bill now awaits debate in Parliament, with Labor calling on all parties to back the changes in support of fairness, dignity, and economic stability for working Australians.
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