[Theme Music Starts]

ANGE:

From Schwartz Media, I’m Ange McCormack. This is 7am.

The Right to Disconnect is becoming law in Australia.

The law, meaning workers can legally ignore after-hours texts and emails, is just one part of the government’s overhaul of workplace reforms that have passed Parliament.

So, what do these new laws mean for workers? And could they make a difference to take home pay?

Today, columnist for The Saturday Paper Paul Bongiorno, on the changes to workers’ rights, and what measures Labor will have to look at next to address the cost of living crisis.

It’s Friday, February 9.

[Theme Music Ends]

ANGE:

Paul, the government's suite of workplace reforms are set to pass parliament after Labor struck a deal with the Greens and the crossbenchers in the Senate. Now these reforms include things like more rights for casual and gig workers, something we spoke about last year.

But there's also been a new amendment added, which is the Right to Disconnect. Can you explain what that is?

PAUL:

Well Ange, a Senate inquiry into work and care tabled this report last March, in fact, and it found millions of Australian workers and their families need some back up when they want to say no to 24/7, contact from their workplace. Working from home during the pandemic helped blur the lines between paid work hours and unpaid family or private time.

The issue is live for millions of Australians, but many workers fear jeopardising their employment if they ignore the boss when they're contacted out of hours or the weekends. This new feature of the government's workplace reforms will give workers the legal right to ignore those emails, phone calls and text messages that come out of their working hours if they want to because, well, being available like this is not part of their award or enterprise agreement or contract.

Audio excerpt – Barbara Pocock:

“Millions of Australians know what it's like to get a call from their workplace to do something unpaid for their boss.”

PAUL:

This Right to Disconnect as it's called, it's a proposal that came from the Greens, spearheaded by Barbara Pocock in the Senate, who basically argued that when you clock off, you should knock off and that there should be a boundary between work life and home life.

Audio excerpt – Barbara Pocock:

“They need a right to say no to that phone call and to reclaim a boundary around the rest of their life. That's what the Right to Disconnect is about.”

PAUL:

The government agreed to this idea with some modifications, that bosses can, of course, contact workers when it's reasonable. And that would include things like wanting to offer someone a shift change.

ANGE:

Right. So the Greens and now the government think that this Right to Disconnect is something that should be addressed. What was their case for giving workers this right?

PAUL:

Well, the Greens say that this is all about unfair conditions around overtime. They point to figures from the Australia Institute’s Centre for Future Work that say, on average, workers do 5.4 hours of unpaid work each week, or 280 hours of unpaid overtime a year. So the Greens argue that this is a form of wage theft, but also a right to disconnect is about letting workers set some clear boundaries.

As for how the government sees it, the Minister for Employment and Workplace Relations, Tony Burke, put it pretty simply on Wednesday, saying that if you're working, you should be paid for it.

Audio excerpt – Tony Burke:

“Yeah, the starting point of workplace relations law in Australia is meant to be that when you work, you are being paid to work.”

PAUL:

He also pointed out that times have changed, so laws should too.

Audio excerpt – Tony Burke:

“Years ago you’d go to someone’s barbeque and someone might work at a hospital or something like that, and they’d be carrying a buzzer. And they were the person on call, and they’d make sure they wouldn’t drink anything, and if the buzzer went off, they’d have to call in, possibly turn up personally, but they’d have to at least use your home phone to call in to work. That’s how it used to be; you’d get an allowance, it’d be understood that you were on call. But if you're in a job where you're only paid for the exact hours that you're working, some people are now constantly in a situation of getting in trouble if they're not checking their emails.”

PAUL:

So this, for the government, is basically about modernising workplace laws to reflect how workplaces have changed. Senator Barbara Pocock said we're really playing catch up with 20 other nations who have already acted on this massive problem.

ANGE:

Right. So the Albanese government has accepted the Right to Disconnect, but it's just one aspect of the broader workplace reforms at play here. What else is in these new workplace laws and how significant are the changes?

PAUL:

You're right, Ange, there's quite a raft of them in what's called closing the loophole legislation. One idea is, same job, same pay. That's where workers who are hired through labour hire firms and who end up doing the same work as full time employees of a company. Well, they must be offered the same rate of pay and conditions. There's measures to allow casual workers to become full time employees with those associated benefits, more easily than they currently can. This is to close a loophole.

The government argued, when bosses sometimes treat workers as if they're permanent employees, but without the benefits of being one, you know, no sick leave and so on. There are also protections for gig economy workers, so people like Uber drivers, food deliverers, etc, have minimum standards, especially minimum standards of pay and even conditions.

Plus, there's another provision to make it easier for union officials to enter workplaces to investigate potential breaches of the Fair Work Act. And there's changes to bargaining laws to make it easier for workers to negotiate enterprise agreements when employers use a form of lawfare in the Fair Work Commission to frustrate the process.

Well, business groups and the federal opposition, they are trenchantly opposed to these reforms, but they failed to convince a majority in the Senate that what's being proposed is unnecessary, or adding cost burdens and making it harder to run a business.

So Ange, the government argues that these changes are significant, they are fair and they facilitate wages growth. And by ending exploitation, they help to address the biggest challenge right now. And that's the cost of living crisis.

ANGE:

After the break - why the Prime Minister compared Peter Dutton to Jack Nicholson in the Shining.

[Advertisement]

ANGE:

Paul. We're talking about new workplace reforms, which are part of the government's toolbox in helping to ease cost of living pressures because it hopes to address things like secure employment and wage growth. But those reforms alone won't solve this cost of living crisis.

Where else is the government looking to make life a bit easier for Australians?

PAUL:

Well, the Albanese government can point to the changes they've made to the stage three tax cuts as a big win to ease cost of living pressures and give more Australians more money in their pay packets from July.

This was always a big political gamble. It moves $90 billion from the top 10% of taxpayers, up to the 90%. And but it does break a promise after the Prime Minister saying his word was his bond.

Well, this week we were given a pretty good indication that the gamble the government took in doing this paid off the newspoll that everyone in Canberra, I have to tell you, takes a lot of notice of, well, it found 62% of Australians believed Albanese did the right thing here.

The Coalition reluctantly came to accept it had been politically skewered after promising to fight the change and roll it back. It'll now wave the changes through the Parliament, but it leaves Dutton obsessing about the broken promise and claiming we now have a liar in the lodge.

Audio excerpt – Peter Dutton:

“Will the Prime Minister rule out changing the current tax treatment of the family home?”

Audio excerpt – The Speaker:

“The call to the Prime Minister. Order. Order! The House will come to order. The Prime Minister hasn't said a word.”

PAUL:

The opposition leader's first question, when Parliament resumed, was to ask Albanese if he now plans to tax the family home.

Audio excerpt – Anthony Albanese:

“They've had two weeks to think about their first question. And it has nothing to do with what we're doing!”

PAUL:

The Prime Minister fended that off pretty easily in Question Time.

Audio excerpt – Anthony Albanese:

“Yes I've answered the question. Now I'm adding to it, Mr Speaker. Now I'm adding. Giving you a bit of colour and movement, Mr. Speaker!”

PAUL:

He's regained something of his lost mojo and confidently taunted Dutton after revelations in the ABC documentary series Nemesis that told us Dutton promised to smile more if he became a leader.

Audio excerpt – Members:

“Give us a smile!”

Audio excerpt – Anthony Albanese:

“It was going to be like Little Miss Sunshine, Mr. Speaker...it was going to be like Little Miss Sunshine!”

Audio excerpt – The Speaker:

“Order! Members on my right will cease interjecting!”

Audio excerpt – Anthony Albanese:

“Well, then he gave his Jack Nicholson in The Shining! You know, smashing through the walls...here's Peter!”

PAUL:

Treasurer, Jim Chalmers, accused the opposition of look over their diversionary tactics, raising hypotheticals and avoiding to discuss the merits of the actual tax changes.

Audio excerpt – Jim Chalmers:

“They still haven’t asked us a question at 10 to 3 about the legislation that I introduced at noon today, and we all know what's going on here, Mr. speaker. They want to ask is a question about all of the things that we haven't said we're doing because they can't defend their position on the thing that we had said we're doing.”

PAUL:

But Ange, while the coalition wants the government to rule out any future tax reforms, it's a nonsense. There's already pressure from the independents and the Greens for real tax reform to be tackled. They're saying if the government wants to seriously address cost of living pressures, they actually do need to put other tax reforms on the table. And housing is especially nominated.

ANGE:

Right. and what else is being suggested by the Greens and the independents to address cost of living and things like housing. That goes beyond what we already have in this stage three tax cuts?

PAUL:

Well, there's crossbench support in the Senate and indeed in the House of reps for negative gearing and capital gains tax treatment of property to be reformed. Those are the things that spook Labor. You might remember, Bill Shorten lost the 2019 election after promising to restrict negative gearing and to look at capital gains tax discounts.

Independent Allegra Spender, whose seat of Wentworth is one of the wealthiest in the country, she says everything should be considered here. That there should be a tax overhaul that goes well beyond stage three.

Audio excerpt – Allegra Spender:

“Reducing taxes on labour and income. Starting income tax indexation. Aligning the tax treatment of different types of saving. Capital gains tax and super tax concessions. Stamp duty and land taxes. The GST. Company tax thresholds. Resource rent taxes. Payroll taxes, and fuel taxes. Just to name a few.”

PAUL:

Tasmania's Jacqui Lambie and the ACT's David Pocock say housing can't be ignored and taxes in their current form have played a significant role in the housing and rental crisis.

Audio excerpt – Patricia Karvelas (ABC):

“How about you David Pocock?”

Audio excerpt – David Pocock:

“I'll jump in there Patricia.”

Audio excerpt – Jacqui Lambie:

“Hahaha, there you go.”

Audio excerpt – David Pocock:

“I want to see the major parties talking about housing. You know. We've got a housing system that isn't working.”

Audio excerpt – Jacqui Lambie:

“Yep.”

PAUL:

Lambie says she's particularly against unrestricted negative gearing and wondered how many properties people really need.

Audio excerpt – Jacqui Lambie:

“Fair dinkum. I mean, I understand you want investment and not just your super, but how many houses do you need to invest? Or just remind those people they can't take that money, that money with them when they're ten foot under?”

PAUL:

David Pocock called for significant reforms to the tax treatment of property, and questioned why it's easier in this country to buy your second home than your first.

Audio excerpt – David Pocock:

“Yeah, the gall of some of these politicians who have multiple investment properties to get up there and say, we cannot touch negative gearing and capital gains tax disconsolately. I think they have to be on the table.”

PAUL:

Well. Treasurer Jim Chalmers says none of this is on his agenda, but carefully, like Albanese, has not ruled out revisiting these issues sometime in the future. Chalmers told one interviewer they are not contemplating or considering changes to negative gearing, franking credits and capital gains tax discount.

ANGE:

And Paul, the government is enjoying the progress they're making this year. They've got the stage three tax cuts. They've got these new workplace reforms to talk up as big wins that they've made to look at the cost of living crisis.

How long will the glow of those changes last, do you think, before they're really forced to look at what the Greens and the independents are calling for, which are more meaningful tax reforms to address the bigger picture?

PAUL:

That's certainly the big question, Ange. The government has regained momentum with a bold stroke, breaking a major promise, but replacing it with a cleverly designed package that economists see has a better outcome. And the opposition is not game enough to directly attack. But former PM and Treasurer Paul Keating, a very bold reformer in his day, used to say voters' gratitude for tax cuts only lasts till the first pay packet.

Chalmers and Albanese know they'll have to come up with something more, so we'll have to stay tuned for what they do in the May budget. But I urge the Reserve Bank may have helped out here. With inflation falling and the economy showing signs of stalling. There may be interest rate relief sooner than we've been expecting, for millions, it can't come soon enough.

ANGE:

Paul, thanks so much for your time today.

PAUL:

Thank you, Ange. Bye.

[Advertisement]

[Theme Music Starts]

ANGE:

Also in the news today,

Foreign Minister Penny Wong said she’s speaking to the United Nations aid agency in Gaza about their investigation into allegations that 12 of its members were involved in the October 7 attacks.

It comes as British news outlet Channel 4 raised questions about the allegations against UNRWA, which were contained in a 12-page Israeli government dossier. The dossier reportedly provided no evidence to support Israel’s claims.

And

Victorian premier Jacinta Allen offered a historic apology to people abused or neglected in institutional care - the first from a Victorian state leader.

Standing in Parliament among more than 100 victim survivors, Allen said “we failed you with this. We are deeply sorry”.

7am is a daily show from The Monthly and The Saturday Paper.

It’s produced by Kara Jensen-Mackinnon, Zoltan Fecso and Cheyne Anderson.

Our senior producer is Chris Dengate. Our technical producer is Atticus Bastow.

Our editor is Scott Mitchell. Sarah McVeigh is our head of audio.

Erik Jensen is our editor-in-chief.

Mixing by Andy Elston, Travis Evans, and Atticus Bastow.

Our theme music is by Ned Beckley and Josh Hogan of Envelope Audio.

I’m Ange McCormack, this is 7am. We’ll be back again next week.

[Theme Music Ends]