SENATOR MURRAY WATT
MINISTER FOR EMPLOYMENT AND WORKPLACE RELATIONS

A report by an independent think tank has found Labor’s Same Job, Same Pay laws will result in a total national wage increase of close to $1 billion every year.

That means thousands of miners, meat workers, flight attendants and warehouse labourers had been underpaid by hundreds of millions of dollars for years under the Coalition.

The McKell Institute’s report entitled “Closing Loopholes, Opening Opportunities” is delivering for workers and communities” makes six findings in relation to the impacts and benefits of Labor’s laws, which came into effect in November last year.

The laws were designed to close the labour hire loophole, which flourished under the Coalition, and condemned those doing the same work and often wearing the same uniform, to be paid tens of thousands of dollars a year less than a company’s direct employees.

Closing this loophole has been an important plank in the Albanese Government’s changes to get wages moving again, but it is now at risk from Peter Dutton and the Coalition.

The report found Same Job, Same Pay is likely to contribute to an aggregate annual wage uplift of up to $920.3 million in a ‘middle of the road’ scenario. It also found that if fully implemented, Same Job, Same Pay could indirectly contribute to a broad economic impact of up to $2.556 billion per year.

Same Job, Same Pay is already delivering significant wage increases for workers.

In the mining industry alone, approximately 1,500 labour hire mine workers have seen average pay rises of around $33,500 each, with some receiving up to $60,000.

Another 4,300 mining workers stand to gain from orders pending or under consideration.

If successful, the aggregate annual wage uplift across the industry would be approximately $200 million.

Labour hire meat workers, flight attendants and warehouse workers are also seeing strong wage gains.

Same Job, Same Pay is also contributing to indirect wage gains.

Employees in the aviation sector are using it as a bargaining chip to reach agreement with host employers, rather than seeking orders.

Some employers are also actively insourcing to avoid prospective orders.

The report also found that implementation of Same Job, Same Pay had not contributed to any unintended impacts on unemployment as some had suggested.



As at 3 April 2025.