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Labor’s penalty rate bill includes an extra provision that the Fair Work Commission’s penalty rate cut on 22 February would have “no effect” because it would be likely to reduce the take-home pay of workers in the four industries affected.



According to the explanatory memorandum, this will mean the bill has retrospective effect invalidating any determination the commission may make prior to the enactment of the bill.



That’s important because it means if the cut starts to be phased in on 1 July, Labor can still go into the next election promising to restore up to 700,000 workers’ penalty rates.



The Greens still have a query about whether annual wage increases could be used to argue that workers’ pay packets are still growing, providing room for the commission to cut penalty rates despite Labor’s bill, provided they’re phased in over a long enough period. They’re seeking advice from the parliamentary library on that point.