Liberal Goldstein MP Tim Wilson says more consultation needed with small business on penalty rate ban

The Coalition has signalled it may delay Labor’s attempts to ban the scrapping or lowering of penalty and overtime rates, stating small businesses could suffer.

The Coalition has indicated it will delay Labor’s proposed laws to ban the reduction of penalty and overtime rates in modern awards, with Liberal MP Tim Wilson stating more information was needed on the impact on small businesses.

A new Bill, introduced by Employment and Workplace Relations Minister Amanda Rishworth on Thursday, will also override the Fair Work Commission (FWC) from substituting the entitlements if it reduces the overall take-home pay of even a single worker on a modern award.

However, Mr Wilson, the Coalition’s small business and industrial relations spokesman, accused Labor of trying to “ram” the legislation through parliament and signalled the opposition was likely to push the Bill to an inquiry.

While he confirmed he’d reviewed the legislation, Mr Wilson said Ms Rishworth was still unable to answer how the Bill would affect small businesses.

“There is a simple reality. There are no penalty rates on jobs that do not exist,” he said.

Tim Wilson said small businesses needed to be consulted on the proposed Bill. Picture: NewsWire / Martin Ollman

“The Coalition supports penalty rates. We support higher wages … but that isn’t what we’re getting from this government with their approach, where their focus is how they do their pay-offs as part of their legislative victory lap, rather than focusing on how to improve the economic conditions that list the standards of living and the wages of Australians.”

While Mr Wilson said the Coalition would “obviously talk to parties from across the parliament”, the opposition had yet to take a firm stance on the Bill.

Ms Rishworth urged the Coalition and Greens to support the legislation and said it was a “key commitment” Labor took to the election.

“My message to the opposition is that they need to listen to the decision of the Australian people,” she said.

“The Australian people clearly back this government to get on with the job of getting wages moving and ensuring that Australians can earn more and keep more of what they earn.”

In response, Mr Wilson said it was proper and “standard” process to get an “assessment of the impact of legislation”.

“This is standard, so they can make the claims about what their mandate may be, it doesn’t mean it gives them a right to override the standard processes of legislative passage,” he said.

As it stands, Labor will need either support of the Greens or the Coalition if it is to pass the legislation in the Senate.

Employment and Workplace Relations Minister Amanda Rishworth introduced the Bill on Thursday. Picture: NewsWire / Martin Ollman

While the Greens have confirmed the party has reviewed the legislation, it has yet to reach a position.

Greens workplace relations spokeswoman Barbara Pocock said the party was having a “close look” at the Bill and would make a decision “in the coming days”.

She also pushed for stronger workers’ rights like a four-day work week without a reduction in pay.

Responding to whether the Greens would support pushing the legislation to an inquiry, she said the party would consider all options.

“This is a no-cost bill for small business, as I read it, but as I said earlier, I’ve just received the Bill,” she said.

“We’re having a close look, and we will want to make sure that there are no unintended consequences and that we get the best possible Bill that we can for some of Australia’s most vulnerable workers.”

The election promise was prompted by a FWC review prompted by the Australian Retailers Association to allow senior management to take a 25 per cent wage increase above minimum award entitlements in exchange for overtime, weekend and public holiday penalty rates and rest breaks.

The submission has been backed by the supermarket giants, plus beauty giant Mecca, as well as Kmart, Costco and 7-Eleven.

Originally published as Liberal Goldstein MP Tim Wilson says more consultation needed with small business on penalty rate ban