The business lobby is calling for cuts to Sunday penalty rates, but Coalition MPs fear the Prime Minister will avoid tough industrial relations changes as he counts down to the election.

Key points: Business lobby group want return of Australian Building and Construction Commission

Business lobby group want return of Australian Building and Construction Commission Push for reduced Sunday penalty rates to Saturday rates and scrapping four-yearly reviews of awards

Push for reduced Sunday penalty rates to Saturday rates and scrapping four-yearly reviews of awards Employment Minister says overhaul of industrial relations unlikely

The ABC has spoken to Coalition MPs who do not think the Government will do anything more in the lead-up to the poll, other than talk about fighting union corruption.

Its plan to do that centres on the reestablishment of the Howard-era building watchdog, the Australian Building and Construction Commission (ABCC).

Australian Industry Group chief executive Innes Willox represents some of the country's biggest employers and is hoping for broader changes.

"We would want the Government to push forward with the ABCC but there's much more it can and should do," he said.

Mr Willox is pushing for the Government to act on the Productivity Commission's lengthy report into the industrial relations system.

"[That means] reducing Sunday penalty rates to Saturday rates, discontinuing four-yearly reviews of awards and significant amendments to the transfer of business laws," he said.

"All of those, from an employer perspective, are positive and are worthy of serious consideration and serious debate in an election context.

"We've been talking with the Government and we hope the Government will decide to act on at least the great bulk of those recommendations."

Any IR changes will be incremental: Employment Minister

The Productivity Commission recommended cutting Sunday penalty rates for retail and hospitality workers to Saturday levels, given the 24-7 economy and fewer Australians going to church.

But penalty rates has been an issue from which Employment Minister Michaelia Cash is at pains to distance herself.

"The setting of penalty rates is a matter for the Fair Work Commission," she said.

"We are not going to change that at all, and when you look at the Productivity Commission, the recommendation regarding penalty rates was not one for the Government, it was for the Fair Work Commission."

Asked whether she agreed with the concept of bringing Sunday rates in line with Saturday pay, Senator Cash said: "The position of the Government is clear: that is a matter for the Fair Work Commission."

Business Council of Australia chief executive Jennifer Westacott is also hoping for changes beyond the ABCC.

"There are some important things that have to be done as well as the Building and Construction Commission," she said.

"We have to really look at some of those important recommendations of the Productivity Commission."

Ms Westacott is unhappy with the current enterprise agreement system.

"There are too many things outside the core wages and conditions that can be negotiated, things like training [and] rosters," she said.

But Senator Cash has confirmed anyone who hoped for a major overhaul of the IR landscape, would be sorely disappointed.

"It is going to be incremental change — I'm not about to swing the pendulum all the way to the right. I believe that would be irresponsible," she said.

"The Productivity Commission recommendations will give us the framework in which, if we choose, to make changes.

"Any changes that we propose will be looking at growth, productivity [and] jobs, but at the same time maintaining a strong safety net for Australians."