The Albanese Government’s Same Job, Same Pay laws have been driving significant wage gains across the Australian economy and creating long-term benefits worth billions, according to new research.
The McKell Institute report, Closing Loopholes, Opening Opportunities, finds that the economic impact of closing the so-called “labour hire loophole” has been substantially underestimated, with real-world wage increases already outstripping government forecasts.
“Same Job, Same Pay was designed to restore fairness to Australian workplaces. This report shows it is doing exactly that – and on a far greater scale than many expected,” said McKell Institute CEO Edward Cavanough.
The report found Same Job, Same Pay is projected to drive an annual wage uplift of up to $920.3 million in a moderate scenario, with a potential to exceed $1 billion in higher estimates.
This wage uplift could deliver a broader economic contribution of up to $2.556 billion annually, as higher wages stimulate spending and regional economic activity.
In sectors like mining, aviation, and retail, workers are already seeing life-changing pay increases of $30,000–$60,000 per year.
At a Kmart distribution centre in Brisbane, 200 workers saw their hourly wage rise by over 30%, from $35.62 to $47.18 per hour, under a Fair Work Commission order.
“For too long, employers used labour hire as a tool to undercut enterprise agreements – slashing wages and creating two-tiered workforces at the same sites,” Mr Cavanough said.
“This wasn’t flexibility. It was wage suppression. And the consequences were being felt by workers, families, and entire communities, particularly in regional areas.
“The data tells a clear story: the wage gains are real, they’re substantial, and they’re being delivered without any adverse impact on jobs or economic performance.
“Wage justice isn’t just about equity. It’s about growth. When you give workers a fair go, you boost household budgets, lift regional economies, and strengthen the entire country.”
