FED Restrictions on the Fair Work Commission Reducing Penalty and Overtime Rates in Modern Awards

Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025

House of Representatives

Senate

Assent

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Introduced by: The Hon Amanda Rishworth MP (ALP)

Links to official parliament websites

Official page: progress through parliament

Effects of this bill

If this bill passes, it means that:

The Fair Work Commission cannot reduce existing penalty or overtime rates when making or changing modern awards.
The Fair Work Commission cannot substitute penalty or overtime entitlements if it results in employees getting less pay.
The Fair Work Commission can still use flexibility terms to adjust pay.
The Fair Work Commission can still vary awards to fix errors or remove ambiguities.
These restrictions apply to awards made before the law starts; they also apply to applications already submitted.

The Debate

What different members said when this bill was debated:

Amanda Rishworth ALP

“I move: That this bill be now read a second time. Introduction I proudly introduce this legislation, delivering on our key election commitment to protect penalty rates. The intent of this bill is simple. 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.”

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Libby Coker ALP

“Let me start with a simple principle. If you are working weekends, public holidays, early mornings or late nights, you deserve to be paid fairly. That time matters to workers, to families and to our communities. That’s what penalty rates are all about—making sure working Australians are properly paid for giving up their precious time that could be spent with family or friends.”

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Tania Lawrence ALP

“The Labor Party is Australia’s oldest political party. Born from the labour movement, defending workers’ rights is in our blood. Now, over 100 years later, we are still here fighting for the rights of workers across this great nation. The Albanese Labor government, like our forebears, is committed to delivering fair pay and decent conditions for Australians.”

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Julie-Ann Campbell ALP

“When I was at school, my local golden arches was a short walk away from my house. I was a frequent visitor to that Macca’s. Sometimes it was for a Happy Meal, but mostly it was because I worked there as a casual, like thousands of young Australians all across the country. Back then, my hourly wage had a four in front of it.”

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Louise Miller-Frost ALP

“Australians expect to be paid a fair day’s pay for a fair day’s work. That’s a principle that should be uncontroversial. It’s how we as a community share around the benefits of economic activity. We harness our shared efforts for the betterment of the Australian community.”

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Gordon Reid ALP

“Today in this chamber it is with great pride that I speak on the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025, a bill that protects the penalty and overtime rates of Australian workers. It is a bill that goes to the very heart of Labor values: the protection and safeguarding of the working men and women of this country.”

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Simon Kennedy LIB

“I’m moving an amendment to the amendment moved by the member for Wentworth, as circulated in my name, because this government has failed to meaningfully consult Australian small businesses on the impact of this bill. We’re condemning the government for refusing to allow this bill to be referred to a parliamentary committee for proper scrutiny and stakeholder input.”

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Ali France ALP

“Did you know that some of Australia’s biggest employers are trying to reduce penalty rates for retail workers, clerical workers and even banking workers? Big retailers like Coles, Woolworths, Kmart and Costco are currently pushing to scrap penalty rates in the Fair Work Commission. We know, if successful, this would leave hundreds of thousands of low-paid workers worse off.”

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Patrick Gorman ALP

“I speak in support of the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025, as introduced by the minister, because millions of workers will benefit from that bill. Penalty rates are not an optional extra; they are essential to the household budgets of millions of Australians.”

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Emma McBride ALP

“I rise to speak on this important legislation, the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025, which gives action to a critical election commitment of our government. I wanted to start with a local person in my community who will be directly affected by this. Her name is Elissa. She’s 43 years old.”

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Anthony Chisholm ALP

“I table a revised explanatory memorandum relating to the bill, and move: That this bill be now read a second time. I seek leave to have the second reading speech incorporated in Hansard. Leave granted. The speech read as follows— Introduction I proudly introduce this legislation, delivering on our key election commitment to protect penalty rates. The intent of this Bill is simple.”

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Maria Kovacic LIB

“I rise to speak on the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025. To be clear, the coalition supports penalty and overtime rates as fair compensation for working unsociable and unpredictable hours. We also support employee choice and flexibility, allowing workers and employers to negotiate arrangements that suit them and best fit their needs.”

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Corinne Mulholland ALP

“This debate, on the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025, goes to the very heart of what it means to be an Australian and to live in Australia. We live in a country built not on privilege or inherited wealth but on the simple, powerful idea that, if you work hard, you deserve a fair go.”

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Dave Sharma LIB

“The Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025 is not about protecting penalty and overtime rates. That might be its title, but that is not its purpose. Instead, this bill is about taking power from an individual and assuming it on behalf of the state. It’s about infantilising grown adults. It’s about denying workers freedom and agency.”

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Ellie Whiteaker ALP

“I rise to speak in strong support of the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025. For millions of Australians, penalty rates are not just a bonus and they are not a luxury; they are part of the safety net. They are the difference between keeping a roof over their heads and falling behind.”

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Penny Allman-Payne GRN

“It’s ironic that six years after I first raised in the Senate the issue that BHP and other multinational mining companies, together with labour hire companies, colluding with the coalmining union bosses and the Fair Work Commission, perpetrated Australia’s largest case of wage theft. An estimated $1.3 billion was ripped off workers.”

Official source →

Deborah O'Neill ALP

“Despite all my years in this place, it never ceases to amaze me. Some of the rhetoric that we hear in these debates inflames uncertainty, fear and despair amongst people who might be driving along listening to this conversation—and there’s so much of it that’s nonsensical and absolutely totally incorrect.”

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Helen Polley ALP

“I rise to speak on the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025 and, in doing so, recognise fairness, sacrifice and an important role penalty rates play in people’s lives within our industrial relations system. I’d like to have my name associated with the good senator’s contribution tonight.”

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Larissa Waters GRN

“I rise to speak to the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025. Penalty rates are a critical protection for workers in this country. Penalty rates ensure that workers are paid fairly for giving up precious time. In a cost-of-living crisis, we know that the price of essentials like housing, food and health care are outstripping wage growth.”

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Jana Stewart ALP

“I rise today in support of the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025.”

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Michelle Ananda-Rajah ALP

“At the heart of the Albanese Labor government is a simple and unwavering belief—that if you put in a fair day’s work you deserve a fair day’s pay. That’s the promise of this Labor government. It’s a value that we hold close. Penalty rates are not a privilege or a bonus.”

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Varun Ghosh ALP

“The Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025 protects penalty rates and overtime rates for 2.6 million Australians who rely on modern awards to set their pay and conditions. Importantly, the bill protects many Australian workers who rely on these overtime and penalty rates for their financial survival.”

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Josh Dolega ALP

“It’s a great pleasure to be able to stand today to speak about penalty and overtime rates. I’d also like to echo some of the words of my colleagues on this side. When I think about why I joined the Australian Labor Party, it comes back to one thing: standing up for everyday Australians, the people who keep our country running, quietly, reliably and often without recognition.”

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Tammy Tyrrell ALP

“Straight off the bat, I support the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025 and will be voting in favour of it, but, to be honest, I wish that we in the Senate knew more about it. The government has decided not to share with us a regulatory impact statement.”

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Dorinda Cox ALP

“I also rise to speak in support of the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025. This bill is something very simple yet absolutely fundamental.”

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Jacqui Lambie JLN

“I seek leave to make a short statement. Leave granted.”

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