Labor pledges to enshrine penalty rates into law if re-elected

Labor has positioned itself as the protector of penalty rates and is warning a Coalition proposal to ban working from home will be revived if it wins office.

The government on Saturday announced it would enshrine evening, weekend and holiday pay allowances in law if re-elected.

That would prevent business groups like the Australian Retailers Association from applying to the Fair Work Commission to cut penalty rate provisions from award agreements. 

Industrial relations issues have worked in Labor's favour during the campaign, with polling showing the short-lived pledge by Opposition Leader Peter Dutton to force public servants back into the office fared poorly with voters.

Education Minister Jason Clare on Saturday warned the dropped proposal was still on the Coalition's agenda, noting a weekend comment by shadow finance minister Jane Hume that it was "good policy" but just not the appropriate time to introduce it. 

"You know what that means. They think the right time to change this is after the election," he told reporters in Sydney.

He accused the opposition leader Dutton of being "dressed up as lamb", pretending he doesn't want to stop people working from home.

But if the Coalition wins the election, "they'll go out of their way to stop you from working from home", Clare said.

L-R: A combined image shows Leader of the Opposition Peter Dutton during a press conference after visiting a new housing development in Wantirna, Melbourne, Wednesday, April 16, 2025 and Australian Prime Minister Anthony Albanese during a visit to a construction site at Forest Hill, Melbourne, Wednesday, April 16, 2025. Source: AAP Image/Mick Tsikas, Lukas Coch.

More polling has shown the issue of how parties treat penalty rates could be decisive, with the union-commissioned research finding it would be a consideration for up to 70% of voters.

The Essential Research poll said 44% of people were more likely to vote for a party that had policies in place to protect penalties, compared with 10% being less likely to.

Retail worker Pauline Lethborg said the extra money from penalty allowances went a long way.

"If we lose penalty rates, it doesn't just affect the older workers, it's the younger ones as well. That bonus money goes to pay rent and food," she said.

"It's not like we're being paid $100 an hour, a lot of retail workers are on $20 to $25 an hour ... penalty rates is what gives them their supplementary income."

The Australian Retail Association earlier in 2025 submitted a proposal for some staff at large companies to opt out of penalty rates in exchange for a 25% pay rise.

Employer lobby Australian Industry Group has backed a similar push for the clerks and banking awards, arguing the rise in working from home has made it impractical for employees to log their hours and compounds the regulatory burden on employers.

Labor had filed a submission to the Fair Work Commission opposing the changes.

Albanese said on Saturday the penalty rates promise was in line with Labor's goal of delivering for working people.

"(It) is something we've been doing since 1891," he said.

"We have supported working people earning more and also we support them keeping more of what they earn."

Dutton said Labor was using the issue as a scare tactic and a distraction from the rising cost of living.

An independent umpire sets the conditions and both sides of politics had abided by that, he said.

"We don't propose any departure from the current arrangements."

"If you are after another stunt from the Labor Party go no further than this."

The Coalition has also announced it will offer tapered tax offsets for newly incorporated small and family businesses in the first three years of operation under a policy to "revive entrepreneurship".

Small businesses would also be able to claim a tax deduction of $2,000 for technology upgrades of $4,000 or more.

Albanese and Dutton spent Good Friday in Sydney, both visiting the Easter show.

Electioneering will heat up again with early voting opening on Tuesday ahead of the May 3 poll.

This article was first published by AAP.

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