How Labor's re-election will influence local councils in Australia

Implications for Local Government,  Workforce Engagement, and Compliance

Recognised for their links to the labour movement, trade unions and dedication to social equity, Labor's return to power is poised to bring about changes in employment law and the contingent workforce. Historically, the Labor Party has been a strong advocate for community-focused policies, and their renewed mandate is likely to result in a series of initiatives aimed at empowering local councils and enhancing community services.

Focus on Infrastructure Development
A key component of Labor's agenda is infrastructure development, which will have a direct and positive impact on local communities. By investing in projects such as public transportation, renewable energy, and affordable housing, the government aims to stimulate economic growth and create employment opportunities. These investments will not only improve the quality of life for residents but also enable local councils to enhance their services and infrastructure.

Changes in Employment Law
Labor's re-election is set to bring about significant changes in employment law, which will have implications for local councils and the contingent workforce. For local councils engaging contingent labour via panel arrangements or direct contracts, these changes will likely require a review of how employment classifications, supplier relationships, and compliance reporting are managed. Key anticipated changes include:

• Stricter regulations on casual employment
• Expansion of Same Job, Same Pay laws to ensure fair wages and conditions, including in publicly funded or council-aligned engagements - Councils may need to ensure alignment across panel suppliers and casual labour classifications, increased penalties for wage theft, with a commitment to criminalising such practices and imposing stricter penalties for non-compliance
• Enhanced mechanisms for resolving workplace disputes

How Comensura can help
Comensura’s MSP model is designed to support councils in adapting to legislative changes. We provide supplier audits, real-time workforce visibility, and streamlined compliance checks that help councils:

• Track contingent worker classifications
• Identify and manage off-panel or non-compliant engagements
• Ensure award and agreement alignment under Same Job, Same Pay legislation
• Minimise misclassification risk and improve governance

Adjustments to Minimum Wage
It is expected that the re-elected government will push for higher minimum wages to help bridge the gap between earnings and the cost of living, supporting better living standards for lower-income workers across various sectors.

Impact on the Contingent Workforce

Temporary, part-time, and contract workers are likely to experience notable changes under Labor's governance. These workers, who often lack the security and benefits of permanent employment, stand to gain from Labor's focus on job stability and improved working conditions.

• Access to Benefits
  Labor's re-election could lead to reforms that extend benefits such as paid leave  to part-time and contract workers, ensuring they receive the same entitlements as their full-time counterparts.
  
  
• Workplace Health and Safety
  Labor is also expected to focus on improving workplace health and safety standards. This may involve introducing stricter safety regulations, increasing the frequency of inspections, imposing higher penalties for non-compliance, and providing greater support for workers' compensation claims. Local councils engaging contractors and temporary staff will also need to ensure that WHS systems extend to external workers.
  
  Through Comensura, councils can centralise WHS documentation, pre-engagement risk assessments, and incident reporting — helping to fulfil host obligations and support contractor safety.
  
  
• Increased focus on Job Security 
  Labor's policies are expected to place a strong emphasis on job security for the contingent workforce. This could involve stricter regulations on the use of temporary contracts and incentives for employers to offer permanent positions. By fostering a more stable employment environment, Labor aims to reduce the uncertainty faced by many contingent workers.

Additional Reforms

• Expanded rights for unions and multi-employer bargaining: Local government may see increased  unions engagement,  with implications for enterprise bargaining and workforce planning.
• Regulation of gig and platform work: Councils using gig platforms for events or auxiliary services may need to ensure engagements meet new minimum standards.
• Tightened casual and contractor definitions : Reforms will increase scrutiny of casual and contractor status, requiring councils to work with partners like Comensura to ensure  compliance with definitions and obligations.

Economic Implications

With a focus on the cost of living, Labor's approach to taxation aims to ensure that corporations and high-income earners contribute fairly by closing tax loopholes, increasing corporate tax rates, and introducing new taxes on wealth and capital gains. Labor plans to invest heavily in infrastructure, funding projects like public transportation, renewable energy, and affordable housing to stimulate economic growth and create jobs. Increased funding for education, healthcare, and social welfare programs reflect their commitment to social justice. Local communities will realise this benefit through access to essential services and fostering a more inclusive society.

Comensura supports councils in managing this broader economic shift by enabling cost transparency across contingent workforces and helping align resource planning with project funding under Labor’s new investment strategies.