Labor reforms: It’s now or never

Australia faces a pivotal decision on labour reforms: whether to implement immediate, bold changes essential to advancing fairer workplaces, economic justice, and a stronger democracy, or to delay action in favour of further assessment. This essay argues that urgent, decisive reform is necessary to meet society’s evolving needs and secure lasting progressive change.

How urgent is the need for change, and what are the consequences of waiting?

Some years ago I raised questions about which bold reform ideas the Labor Party should pursue, recognising the vital need for genuine change and initiating a discussion on how these reforms could be structured, prioritised, and implemented over time.

I believed that the Party should implement reforms through a structured plan spanning all three terms in office. To organise this process, it is important to distinguish reforms by urgency and feasibility, allocating priority to those with the greatest immediate impact and political viability.

Specifically, the prioritisation is informed by an assessment of which initiatives address pressing socio-economic challenges and are likely to secure sufficient parliamentary and public support for swift implementation. For this reason, the most urgent and achievable initiatives: (1) introducing a national wage, (2) reforming negative gearing and the tax system, and (3) strengthening government integrity through greater transparency – should be addressed in the first term, as these reforms provide a foundation for broader progressive change and are supported by policy analysis as being deliverable within a relatively short timeframe.

In contrast, reforms of greater complexity, such as comprehensive tax restructuring, education and workplace reforms, and further enhancements to democratic processes, will require extended negotiation, stakeholder consultation, and phased implementation, making them more suitable for subsequent terms. By explicitly clarifying the criteria underlying this prioritisation and setting realistic timelines, we can focus attention on immediate progress while steadily building momentum for future advancements.

With a huge majority, now is the time to take advantage of it. If Albanese wants to leave a legacy as a reformer, he must act now.

According to a recent Parliamentary Budget Office publication, there are five proposed options to reform negative gearing and capital gains tax arrangements. However, the budget should tell us more.

1 Economic Fairness: Introduce a national wage. However, this proposal appears to have limited political and public support at present, as it has not been prominently endorsed by major parties or broadly embraced in public discourse. For instance, analysis by the Australian Council of Trade Unions (ACTU, 2022) found that while some advocacy groups and labour organisations support a national wage, public opinion polls (Essential Research, 2023) indicate that less than half of Australians are familiar with its details or implications. This lack of widespread backing raises concerns about the political feasibility of implementing a national wage, despite its potential to promote economic fairness.

International evidence suggests such policies can reduce wage inequality and improve living standards (OECD, 2021), but Australian-specific modelling (Productivity Commission, 2022) highlights significant implementation challenges given the current policy climate.

It is therefore essential to critically assess the barriers to gaining greater support and to consider what evidence-based strategies might be necessary to build broad consensus for such a reform.

• Real Wage Increases: The government has formally asked the Fair Work Commission to grant an above-inflation pay rise for approximately 3 million minimum and award-wage workers to combat high fuel and living costs.
• Sector-Specific Hikes: They have already legislated significant pay rises for specific industries, including a 15% increase for early childhood educators and up to 28% for aged-care workers.
• Protecting Penalty Rates: Labor has committed to new laws that prevent the industrial umpire from removing penalty rates in exchange for higher base pay. [1, 2, 3, 4, 5]

Key Wage-Related Proposals

• Non-Compete Clause Ban: A plan is in place to ban non-compete clauses for anyone earning less than $175,000, which Labor argues will allow workers to move to higher-paying competitors more easily.
• No-Poach Agreement Ban: They intend to outlaw businesses from making “no-poach” agreements that prevent employees from being hired by rivals, a step aimed at ending “wage fixing”.
• Standardising Entitlements: The Labor National Platform includes plans to work toward a national minimum standard for long service leave and portable entitlements for disability support workers. [1, 2]

2 Reform negative gearing and the tax system. While the Greens have called for the minimum wage to be pegged at 60% of the median full-time wage, the Albanese Government has not set this target, preferring to base annual submissions on current economic conditions.

Labor is set to restrict negative gearing to new properties only. This change will be “grandfathered,” meaning current property owners will not lose their existing tax benefits, but future investors will no longer be able to deduct losses on established properties.

Capital Gains Tax (CGT): The government plans to abolish the current 50% CGT discount for assets held for more than 12 months. It is expected to be replaced by an indexation model that taxes only inflation-adjusted “real” gains.

3 Promote equality of opportunity in education, employment, and all facets of society. Trusts Crackdown:The upcoming budget is expected to include a new crackdown on the use of family trusts to reduce tax.

4 The government is implementing a strategy to ensure women hold 50% of positions on Australian Government boards at the portfolio level, a goal largely met in the 2024-25 cycle. It also wants to see women’s representation in parliament increased.

5 Honesty and Openness in Government:

The Government plans to strengthen integrity by prioritising openness in decision-making processes. To operationalise this goal, it has introduced several reforms: requiring the active disclosure of meetings between lobbyists and Ministers; expanding public access to government contracts; simplifying Freedom of Information (FOI) procedures to promote timely citizenship engagement; and developing a public register of Cabinet members’ declared interests. While Labor presents truthfulness and transparency as central to its campaign, critics contend that these measures may not go far enough to address entrenched issues around government opacity.

They argue that the reforms, though notable, either lack robust enforcement mechanisms or fail to ensure comprehensive public scrutiny, especially in light of recent attempts to restrict access to information. Conversely, proponents assert that incremental reforms are a pragmatic method of building a culture of transparency within existing institutional constraints, and that public trust may be enhanced through consistent, if gradual, progress. As such, the effectiveness of these initiatives, and whether they sufficiently address both the structural and cultural dimensions of government transparency, remains a subject of ongoing debate within public and parliamentary discourse.

Integrity experts and independent MPs have questioned whether the current reforms adequately address systemic transparency issues, especially in light of recent efforts to restrict information access through legislative changes. Critics argue that, despite some progress, entrenched bureaucratic resistance and the government’s recent tightening of information laws may hinder the full realisation of openness, demonstrating that significant barriers remain and necessitate continued scrutiny and iterative reform. [1, 2, 3, 4]

6 Through public access to Ministers’ meeting diaries, especially with lobbyists? As of mid-2026, the federal Labor Government has continued to resist calls from crossbenchers and integrity groups to mandate the active publication of ministerial diaries.

7 Caps on Political Donations and Spending: According to the Australian Electoral Commission, the Electoral Legislation Amendment (Electoral Reform) Act 2025, which received Royal Assent on 20 February 2025, introduces the first-ever federal limits on money in Australian politics. APS: Individual donations to a single political party or candidate will be capped at $50,000 per year. There is also an “overall gift cap” of $1.6 million for total donations made by one donor to multiple recipients in a calendar year.

Spending Caps: Political parties will be limited to $90 million for national election campaigns. According to the Australian Electoral Commission, starting 1 July 2026, the threshold for publicly disclosing political donations will be reduced to $5,000, and donations above this amount must be reported much more quickly. See these pages. [1, 3, 4, 5]

8 Appoint an independent speaker with the authority to stand Ministers down. Reform Question Time by appointing a panel of former speakers to revise the rules with consequences for knowingly lying to Parliament, and ensure the independent speaker is involved.

9 Cap political ads, donations, and MPs’ expenses. Ban foreign offshore donations to political parties.

10 What specific changes can be made to ensure targets will be met on climate emissions? Aligning with the broader imperative for urgent and decisive reform, Australia should reintroduce a price on carbon emissions and fully commit to a renewable energy transition.

Doing so is not only essential for meeting climate targets, but is also integral to achieving economic justice, fairer workplaces, and strengthening democracy. Empirical evidence underscores the effectiveness of carbon pricing: for example, the Grattan Institute (2023) found that economies with robust carbon pricing mechanisms, such as the European Union, have achieved significant emissions reductions while maintaining economic growth.

An equitable and transparent carbon pricing mechanism would hold primary polluters accountable and drive investment in clean technologies, advancing the progressive reform agenda. In support of renewables, recent data from the Clean Energy Council (2024) indicates that expanded funding for wind and solar projects, combined with energy grid upgrades and clear transition targets, has led to record levels of renewable generation, with renewables supplying over 35% of Australia’s electricity. Implementing these steps as part of a comprehensive reform effort will enable Australia not only to cut emissions and create jobs in the clean energy sector, but also to realise lasting social and economic benefits.

11 Set a goal to actively facilitate collaboration between creative individuals and young people to inspire positive change, thereby sustaining the momentum for urgent reform discussed in this essay. Genuine, lasting progress on labour, social, and economic policy requires not only legislative action but also structured, inclusive public engagement. To enhance actionability, readers are encouraged to take specific steps such as organising or attending local forums, initiating or participating in policy discussion groups, volunteering with grassroots campaigns advocating for fairer workplaces, and submitting policy proposals or feedback through established online platforms and community surveys. Such targeted initiatives will directly advance fairer workplaces, economic justice, and democratic renewal by ensuring that reforms reflect diverse perspectives and by reinforcing the collective capacity for progressive change.

12 Find ways for people to interact effectively with the Labor Party.

13 We need to solve the problems facing the Murray-Darling.

14 Let’s return to a refugee policy that is both civilised and compassionate.

15 Ads placed in biased media should count as political donations, not as tax deductions.

16 A joint Parliamentary Committee should review major appointments to judicial and government agencies to ensure they serve the public, not political interests.

17 We should limit post-parliamentary jobs so that Ministers can’t take on roles they supported while in office.

The current financial crisis affecting many nations, combined with the war in Iran, not only presents considerable obstacles to reform efforts but also highlights how global instability can exacerbate domestic challenges. This international context underscores the urgency of decisive action in Australia, as external pressures can diminish the scope for progressive policy change if not addressed promptly. A recent report from the Australian Parliament indicates that the forthcoming election may further impede progress, even as new legislation seeks to enhance openness and accountability in federal elections.

These interactions between international and domestic dynamics reinforce the essay’s central argument: delaying reform risks losing critical momentum for policies that promote fairness and democratic renewal. My prior experience sharing reform suggestions on Facebook, which generated only limited engagement, further highlights the disconnect between policy discourse and public participation, reinforcing the necessity for active public engagement to secure lasting progressive change.

This minimal response reflects possible voter disengagement or scepticism, underscoring the need for more robust public engagement strategies to ensure that essential reforms garner both awareness and support.

18 Additional suggestions may emerge this time. The idea of a “Bill of Rights” remains open for discussion.

19 Meanwhile, consideration of a Republic” is long overdue

My thought for the Day

We often dislike and resist change, mistakenly believing that we can preserve the conditions that make us feel secure. However, change is intrinsic to our existence, and recognising this reality is essential for advancing the urgent reforms discussed in this essay. Only by embracing change can we respond effectively to society’s evolving needs and secure the progressive, lasting improvements in fairness, economic justice, and democracy this paper advocates.

Whoops, I almost forgot the Overland Fast Rail Project.

Author’s note: Some AI was used to obtain factional evidence.