Unions welcome Bill to protect penalty rates for 2.6 million workers

Media Release - July 24, 2025

The ACTU welcomes the Albanese Government’s introduction of a Bill to protect penalty and overtime rates for 2.6 million award-reliant workers – marking the first workplace legislation introduced in the new Parliament.

The legislation delivers on a key election commitment to prevent employers from reducing workers’ take-home pay by cutting penalty rates.

Under the proposed Bill, employers cannot cut penalty rates of award-reliant workers, who are disproportionately low-paid women, young people, and those in part-time and insecure work. This protects the safety net for all workers.

Unions urge all Members of Parliament and Senators to support the Bill to provide workers’ financial certainty and stability.

The ACTU will oppose any future attempts to undermine basic workplace entitlements.

Quotes attributable to ACTU Secretary, Sally McManus:

“Penalty rates are an essential part of millions of workers’ take-home pay. Unfortunately, for decades, employers have pushed and pushed to erode or abolish them.

“Fair protections like penalty rates matter most to the people who can least afford to lose out, including young workers, women, casual workers and those in part-time jobs.

“Our Government is finally stepping in to stop employers cutting penalty rates and protect working people’s pay. This was a key election promise, and we thank the Albanese Government for making it one of their first priorities. We call on all political parties to respect the election’s outcome and pass this law.”

The ACTU Network

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