Question Time AU

Bill Debate · Second Reading

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

Senate · Monday 25 August 2025

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

The Senate debated legislation to protect penalty and overtime rates in modern awards, preventing them from being rolled up into single pay rates that leave workers worse off. Labor and Greens senators supported the bill as essential protection for low-paid workers, while Coalition senators opposed it, arguing it reduced worker choice, added regulatory burden to small businesses, and undermined the Fair Work Commission's independence. The Greens moved an amendment calling for a right to work from home, which was not passed. The debate concluded with the bill proceeding to further consideration.

Outcome

The second reading amendment moved by Maria Kovacic was not passed, and the debate was adjourned with the bill to be resumed later.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Opened the debate

Chisholm introduced the bill as a fulfillment of an election commitment to protect penalty rates for approximately 2.6 million award-reliant workers. Chisholm argued that the legislation prevents employers from rolling penalty and overtime rates into single pay structures that disadvantage employees, particularly in retail and hospitality sectors. Chisholm stated the bill introduces a new principle requiring the Fair Work Commission to ensure awards do not reduce these rates, without imposing retrospective obligations or disrupting enterprise bargaining. Chisholm emphasized that the reforms are targeted, simple, and designed to maintain the safety net without adding unnecessary complexity for employers.

Opposition response

Kovacic opposed the bill, arguing it adds significant red tape to small businesses that already face numerous compliance burdens. Kovacic claimed the legislation undermines the independence of the Fair Work Commission by predetermining outcomes and removing discretion to approve flexible arrangements that workers might prefer, such as higher base salaries. Kovacic stated the bill could operate retrospectively, creating uncertainty for existing awards, and strips employees of genuine choice regarding their pay structures. Kovacic moved an amendment requiring a Regulation Impact Statement before further consideration, asserting the current system already protects penalty rates adequately.