Penalty rate push undermines productivity summit

Jul 18, 2025
Financial Review

A bill to enshrine penalty rates in law will be among the first to be rushed through parliament when it sits next week, prompting claims from business that the government is not serious about fixing productivity.   :)

The penalty rates move, which was promised in the election campaign, will effectively ensure 2.6 million workers on awards and their employers cannot have penalty rates reduced in return for a higher rate of base pay if it leaves a single worker worse off.   :)


Workplace Relations Minister Amanda Rishworth says those who rely on the award safety net deserve to have their wages protected.

Currently, such decisions are made by the industrial umpire when varying awards, which, in turn, form the basis for other wage agreements negotiated by enterprise bargaining.

The move will effectively scuttle recent applications by employer groups across the retail, clerical and banking sectors to reduce entitlements for some workers in exchange for higher pay.

“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,” said Workplace Relations Minister Amanda Rishworth.



Legislation to slash student debt will be another priority when parliament sits next week. The government will not say when it plans to introduce the bill to double the tax on superannuation balances above $3 million.

Australian Industry Group chief executive officer Innes Willox said the government’s decision to fast-track the penalty rates bill when parliament sits for the first time since the election contrasted with its planned three-day productivity summit in mid-August.

‘Dark irony’
“The dark irony of the impact of anti-productivity workplace relations changes introduced over the past three years now rolling across the economy at a time when we are trying to have a serious conversation about boosting our long-term flatlining productivity is not lost on the business community,” he said.

“Although there is the potential for significant progress to drive productivity-boosting reform across tax, deregulation, skills, energy and environment approvals and research and development, the jumbo-sized elephant sitting in the corner of the room will be the inability to discuss the negative impact of the recent workplace relations measures on productivity.

“As we predicted, it is only now that unions are beginning to muscle up around right of entry, pursuing multi-party bargaining deals across the economy and gaming the intractable bargaining provisions to force employers into outcomes where they can’t trade off productivity changes for wage increases.”

He said while the employer group and others were still in negotiations with the government about the proposals to legislate penalty rates, “there is obvious concern that it could further reduce workplace flexibility, especially at a time when we are already seeing rising national unemployment and the private sector clearly in job-shedding mode”.

At the same time, Willox said the organisation was updating work-from-home arrangements for more than 1 million workers covered by the clerks award.

“This is a clear sign that the nine-to-five working arrangements no longer suit many workers, and we need to update our systems to recognise this.”

Business is still reeling from the outcome of the 2022 Jobs and Skills summit, when the government unveiled two tranches of industrial relations changes, such as eradicating the use of labour-hire and bringing back multi-employer bargaining.

Industrial relations will not be the agenda at the productivity meeting to be held in mid-August.

Quote:

The penalty rates move, which was promised in the election campaign, will effectively ensure 2.6 million workers on awards and their employers cannot have penalty rates reduced in return for a higher rate of base pay if it leaves a single worker worse off.

So the unions oppose 99% of employees getting a raise because the 1% who are best at milking the current system won't get as much bonus overtime?

Penalty Rates Protection Tops Government Agenda   :)
July 19 2025 Mirage news.
The Hon Amanda Rishworth MP
Minister for Employment and Workplace Relations
Penalty and overtime rates for millions of Australian workers are one step closer to protection enshrined in law, with the Albanese Labor Government set to introduce legislation on its key election commitment next week.

The Bill will protect crucial entitlements for around 2.6 million modern award-reliant workers, many who count on penalty rates to make ends meet.

The legislation inserts a high-level principle into the Fair Work Act that operates alongside the modern awards objective, ensuring penalty rates and overtime can't be rolled up into a single rate of pay where it leaves any individual employee worse off.

Employers in the retail, clerical and banking sectors have made applications to the Fair Work Commission to trade away the penalty rates of lower paid workers from awards, leaving some workers worse off.

The Bill we will introduce next week ensures that in applications like these, no worker sees their pay packet reduced.

Minister for Employment and Workplace Relations Amanda Rishworth said the legislation builds on the significant reforms of Labor's first term, and the re-elected Government's submission to secure minimum wage earners a 3.5 per cent pay boost.

"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."


"We want this law passed as a top priority, so workers are protected from the loopholes that see their take-home pay go backwards."

"Enterprise bargaining is the appropriate place to negotiate on entitlements - not eroding the award safety net."

Modern awards provide entitlements such as pay, hours of work, rosters, breaks, allowances, penalty rates and overtime. They form part of the safety net of minimum wages and entitlements for Australia's lowest paid workers.

People who are covered by awards are more likely to be women, work part time, be under 35 and employed on a casual basis.

The unions are good at putting a positive spin on screwing over everyone else, in particular the unemployed. But in this case they are screwing over their own members.

People that work overtime, weekends and public holidays should get paid the penalty rates.  Good on labor for protecting the penalty rates.   :)

freediver wrote on Jul 19^th, 2025 at 11:40am:

Quote: The penalty rates move, which was promised in the election campaign, will effectively ensure 2.6 million workers on awards and their employers cannot have penalty rates reduced in return for a higher rate of base pay if it leaves a single worker worse off. So the unions oppose 99% of employees getting a raise because the 1% who are best at milking the current system won't get as much bonus overtime?

This is about penalty rates, not overtime.

Two different things.

greggerypeccary wrote on Jul 19^th, 2025 at 1:10pm:

freediver wrote on Jul 19th, 2025 at 11:40am: Quote: The penalty rates move, which was promised in the election campaign, will effectively ensure 2.6 million workers on awards and their employers cannot have penalty rates reduced in return for a higher rate of base pay if it leaves a single worker worse off. So the unions oppose 99% of employees getting a raise because the 1% who are best at milking the current system won't get as much bonus overtime? This is about penalty rates, not overtime. Two different things.

https://www.fairwork.gov.au/pay-and-wages/penalty-rates-allowances-and-other-payments/penalty-rates


Quote:

Employees may be entitled to a penalty rate when working: weekends public holidays overtime late nights shifts or early morning shifts.

whiteknight wrote on Jul 19^th, 2025 at 12:58pm:

People that work overtime, weekends and public holidays should get paid the penalty rates.  Good on labor for protecting the penalty rates.   :)

Good job at keep the propaganda simple. It will appeal more to stupid people, who are the unions target customers.

i wonder how long it will take FD to figure out that he shot down his own argument? :D

freediver wrote on Jul 19^th, 2025 at 1:43pm:

greggerypeccary wrote on Jul 19th, 2025 at 1:10pm: freediver wrote on Jul 19th, 2025 at 11:40am: Quote: The penalty rates move, which was promised in the election campaign, will effectively ensure 2.6 million workers on awards and their employers cannot have penalty rates reduced in return for a higher rate of base pay if it leaves a single worker worse off. So the unions oppose 99% of employees getting a raise because the 1% who are best at milking the current system won't get as much bonus overtime? This is about penalty rates, not overtime. Two different things. https://www.fairwork.gov.au/pay-and-wages/penalty-rates-allowances-and-other-payments/penalty-rates [quote]Employees may be entitled to a penalty rate when working: weekends public holidays overtime late nights shifts or early morning shifts.

[/quote]

Yes.

That doesn't change the fact that penalty rates and overtime are two completely different things.

Overtime refers to hours worked beyond an employee's standard or regular hours, while penalty rates are additional payments for working during specific times or under specific conditions, such as on weekends, public holidays, or late at night.

I really can't make it any simpler for you.

But, don't take just my word for it:

"Here’s something that may surprise you. Penalty rates and overtime are NOT the same thing.

"Using these terms interchangeably is quite common, but incorrect.

"Unsurprisingly, getting pay right can be a confusing task – and it is one of the most important things legal and HR MUST get right."

Quote:

That doesn't change the fact that penalty rates and overtime are two completely different things.

Duh. But does that mean that it has nothing to do with overtime, as you also claimed?

Now, back to my original point:

So the unions oppose 99% of employees getting a raise because the 1% who are best at milking the current system won't get as much bonus overtime?

The unions are good at putting a positive spin on screwing over everyone else, in particular the unemployed. But in this case they are screwing over their own members.

freediver wrote on Jul 19^th, 2025 at 2:19pm:

Quote: That doesn't change the fact that penalty rates and overtime are two completely different things. Duh. Now, back to my original point: So the unions oppose 99% of employees getting a raise because the 1% who are best at milking the current system won't get as much bonus overtime? The unions are good at putting a positive spin on screwing over everyone else, in particular the unemployed. But in this case they are screwing over their own members.

This is about penalty rates, not overtime.

greggerypeccary wrote on Jul 19^th, 2025 at 2:20pm:

freediver wrote on Jul 19th, 2025 at 2:19pm: Quote: That doesn't change the fact that penalty rates and overtime are two completely different things. Duh. Now, back to my original point: So the unions oppose 99% of employees getting a raise because the 1% who are best at milking the current system won't get as much bonus overtime? The unions are good at putting a positive spin on screwing over everyone else, in particular the unemployed. But in this case they are screwing over their own members. This is about penalty rates, not overtime.

You are confused Greg. What makes you think that getting a penalty rate for doing overtime has nothing to do with doing overtime? Are you just confused by the fact that they used a different word?

freediver wrote on Jul 19^th, 2025 at 2:22pm:

greggerypeccary wrote on Jul 19th, 2025 at 2:20pm: freediver wrote on Jul 19th, 2025 at 2:19pm: Quote: That doesn't change the fact that penalty rates and overtime are two completely different things. Duh. Now, back to my original point: So the unions oppose 99% of employees getting a raise because the 1% who are best at milking the current system won't get as much bonus overtime? The unions are good at putting a positive spin on screwing over everyone else, in particular the unemployed. But in this case they are screwing over their own members. This is about penalty rates, not overtime. You are confused Greg. What makes you think that getting a penalty rate for doing overtime has nothing to do with doing overtime? Are you just confused by the fact that they used a different word?

Someone is confused alright.

"Here’s something that may surprise you. Penalty rates and overtime are NOT the same thing.

"Using these terms interchangeably is quite common, but incorrect.

"Unsurprisingly, getting pay right can be a confusing task – and it is one of the most important things legal and HR MUST get right."

greggerypeccary wrote on Jul 19^th, 2025 at 2:35pm:

freediver wrote on Jul 19th, 2025 at 2:22pm: greggerypeccary wrote on Jul 19th, 2025 at 2:20pm: freediver wrote on Jul 19th, 2025 at 2:19pm: Quote: That doesn't change the fact that penalty rates and overtime are two completely different things. Duh. Now, back to my original point: So the unions oppose 99% of employees getting a raise because the 1% who are best at milking the current system won't get as much bonus overtime? The unions are good at putting a positive spin on screwing over everyone else, in particular the unemployed. But in this case they are screwing over their own members. This is about penalty rates, not overtime. You are confused Greg. What makes you think that getting a penalty rate for doing overtime has nothing to do with doing overtime? Are you just confused by the fact that they used a different word? Someone is confused alright. "Here’s something that may surprise you. Penalty rates and overtime are NOT the same thing. "Using these terms interchangeably is quite common, but incorrect. "Unsurprisingly, getting pay right can be a confusing task – and it is one of the most important things legal and HR MUST get right."

I am not using them interchangeably Greg. That is just you getting yourself confused, yet again. But You could if you wanted to, and you would get the same conclusion - the unions are trying to put a positive spin on screwing over their own members.

Can you tell the difference between two words having a different meaning, and them having nothing to do with each other? Do you still think that getting penalty rates for doing overtime has nothing to do with doing overtime? I realise that you have John Smith cheering you on here, but I suggest whenever you see that happen it is because you are saying something stupid.

The unions oppose 99% of employees getting a raise because the 1% who are best at milking the current system won't get as much bonus overtime?

This explains why Mimo and Gwoggy are not rich.

freediver wrote on Jul 19^th, 2025 at 2:56pm:

greggerypeccary wrote on Jul 19th, 2025 at 2:35pm: freediver wrote on Jul 19th, 2025 at 2:22pm: greggerypeccary wrote on Jul 19th, 2025 at 2:20pm: freediver wrote on Jul 19th, 2025 at 2:19pm: Quote: That doesn't change the fact that penalty rates and overtime are two completely different things. Duh. Now, back to my original point: So the unions oppose 99% of employees getting a raise because the 1% who are best at milking the current system won't get as much bonus overtime? The unions are good at putting a positive spin on screwing over everyone else, in particular the unemployed. But in this case they are screwing over their own members. This is about penalty rates, not overtime. You are confused Greg. What makes you think that getting a penalty rate for doing overtime has nothing to do with doing overtime? Are you just confused by the fact that they used a different word? Someone is confused alright. "Here’s something that may surprise you. Penalty rates and overtime are NOT the same thing. "Using these terms interchangeably is quite common, but incorrect. "Unsurprisingly, getting pay right can be a confusing task – and it is one of the most important things legal and HR MUST get right." I am not using them interchangeably Greg. That is just you getting yourself confused, yet again. But You could if you wanted to, and you would get the same conclusion - the unions are trying to put a positive spin on screwing over their own members. Can you tell the difference between two words having a different meaning, and them having nothing to do with each other? Do you still think that getting penalty rates for doing overtime has nothing to do with doing overtime? I realise that you have John Smith cheering you on here, but I suggest whenever you see that happen it is because you are saying something stupid. The unions oppose 99% of employees getting a raise because the 1% who are best at milking the current system won't get as much bonus overtime?

The article is about penalty rates, not overtime.

You don't get penalty rates for doing overtime - you get overtime rates. 

Penalty rates are paid for working weekends, late nights, Public Holidays, etc.

Penalty rates and overtime rates are not the same thing.

You are very, very confused.

"Penalty rates and overtime are distinct concepts related to employee pay.

"Penalty rates compensate employees for working unsociable hours, while overtime is paid for hours worked beyond the standard hours defined in an employee's contract or award."

Quote:

You don't get penalty rates for doing overtime - you get overtime rates.

https://www.fairwork.gov.au/pay-and-wages/penalty-rates-allowances-and-other-payments/penalty-rates


Quote:

Employees may be entitled to a penalty rate when working: weekends public holidays overtime late nights shifts or early morning shifts.

Overtime is a penalty rate.

whiteknight wrote on Jul 19^th, 2025 at 11:37am:

cannot have penalty rates reduced in return for a higher rate of base pay if it leaves a single worker worse off.

This makes zero difference. All employees are worse off by default. The is a great deal for management and assists in removing penalty rates.

Fact is that the strategy is to offer increases in exchange for taking away penalty rates. It doesn't matter if it is compensated adequately. The employer then over time erodes any and all over award payments. That is any pay increase from a negotiation will ever become the award rate is is all over award. No over award payment is protected in any way. The inevitable result in 4 or 5 years after the deal the pay increases are gone as well as the penalty rates.

Jasin wrote on Jul 19^th, 2025 at 10:02pm:

Overtime is a penalty rate.

Your point ?

Typically over time is hours worked outside of the normal weeks hours. i.e hours worked on top of the 16.75 hours per week and penalty rates are paid for working unsociable hours within the normal weeks rostered hours. So while the overtime rate is a penalty it isn't the same as penalty rates as defined in industrial law.

In some industries it is possible to work overtime on penalty rate hours but there are cases where this is not allowed. i.e you can claim one or the other.

Dnarever wrote on Jul 19^th, 2025 at 10:08pm:

Jasin wrote on Jul 19th, 2025 at 10:02pm: Overtime is a penalty rate. Your point ?

Like the end of a sabre in your chest

Jasin wrote on Jul 19^th, 2025 at 10:10pm:

Dnarever wrote on Jul 19th, 2025 at 10:08pm: Jasin wrote on Jul 19th, 2025 at 10:02pm: Overtime is a penalty rate. Your point ? Like the end of a sabre in your chest

Apart of not really being correct it doesn't make any difference to anything even if it were. Its another strawman.

Well - Work"Choices" was supposed to leave no worker any worse off for accepting rates and conditions - and look where that ended...

Tent City .... high unemployment and part-employment ... mass immigration to prop up GDP in a failing economy and consequent failing social milieu ...  rising costs of living without accompanying rises in living standards via incomes to cover, all exacerbated by importing grasping peasants from the Third World - piranha in a complacent pond ........ homing in insecure rentals ... never-ending preferential treatment for some so as to perpetuate social divides and poverty with which to keep the people under control as beggars on the street of work ... rising social disintegration with crime expanding and civil unrest borderlining revolt and revolution.....

Add as you see fit - I'm working without a net as usual..

Sir Grappler Truth Teller OAM wrote on Jul 19^th, 2025 at 10:40pm:

Well - Work"Choices" was supposed to leave no worker any worse off for accepting rates and conditions - and look where that ended... Tent City .... high unemployment and part-employment ... mass immigration to prop up GDP in a failing economy and consequent failing social milieu ...  rising costs of living without accompanying rises in living standards via incomes to cover, all exacerbated by importing grasping peasants from the Third World - piranha in a complacent pond ........ homing in insecure rentals ... never-ending preferential treatment for some so as to perpetuate social divides and poverty with which to keep the people under control as beggars on the street of work ... rising social disintegration with crime expanding and civil unrest borderlining revolt and revolution..... Add as you see fit - I'm working without a net as usual..

Quote:

Work"Choices" was supposed to leave no worker any worse

Workchoices was a disaster for workers, supposedly Gillard's fair work was meant to fix it but was an absolute failure it suffered from the problem I posted on this protection as well as others.

One of the main issues is the boot test only applying to the base award rate. This means that anyone paid above the lowest modern award rate is not protected in any way. This is made worse by the fact that the modern award rate is lower than the real rate paid as the base rate in most industries. This means that the boot test doesn't really protect hardly anyone. It took business advisors about 10 minutes to work out how to work around fair work.

Won't help if you don't have a job and AI won't apply for penalty rates.
It will be the best employee.
No sick days, no whining and complaining

Continue with your irrelevant posting

Dnarever wrote on Jul 19^th, 2025 at 10:24pm:

Jasin wrote on Jul 19th, 2025 at 10:10pm: Dnarever wrote on Jul 19th, 2025 at 10:08pm: Jasin wrote on Jul 19th, 2025 at 10:02pm: Overtime is a penalty rate. Your point ? Like the end of a sabre in your chest Apart of not really being correct it doesn't make any difference to anything even if it were. Its another strawman.

Greg got all confused by my mention of overtime, and John is cheering him on. We are yet to establish what their point is. There probably isn't one. They just don't like me pointing out that the unions are screwing over their own members this time.

The cost of doing anything in Australia is more expensive than anywhere in the world. Nothing gets done here. Can't even build our own subs. International companies don't want to set up shop here and create more industry and jobs, labour costs are just too high.

freediver wrote on Jul 20^th, 2025 at 7:59am:

and John is cheering him on.

you drunk again FD? I haven't mentioned Gregs comments :D :D