The federal government has proposed a new Fair Work Court to resolve workplace disputes faster and at lower cost. Business groups have responded with skepticism, warning the plan could add complexity instead of reducing it.
The court would operate alongside the existing Fair Work Commission, staffed by judges with dedicated workplace relations expertise. Prime Minister Anthony Albanese stated that the current system forces some workers and small businesses to wait over two years for resolution, often spending more on legal fees than the original claim is worth.
A decades-overdue replacement
Attorney-General Michelle Rowland presented the proposal as an access-to-justice measure, describing it as a “streamlined dispute resolution pathway” for employees and employers. Employment Minister Amanda Rishworth emphasized that specialist judges would ensure workplace matters receive proper attention from those with relevant experience.
Albanese noted that workers owed hundreds or thousands of dollars should not face years of delays or be told their case will cost more than their claim. The government intends for the court to replace an industrial relations court abolished in 1997 under the Howard government.
Consultation on the court’s design will continue through the year, with details on timing, cost, and operations still pending. Rishworth stated the government aims to refine the model based on feedback.
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Business groups skeptical before details emerge
Australian Chamber of Commerce and Industry chief executive Andrew McKellar called the proposal a potential “lawyer’s picnic,” arguing that workplace relations law has become too complex. Business Council chief executive Bran Black supported simpler dispute resolution in principle but cautioned that the new court might introduce another layer of process without clear advantages.
Black added that cases costing more than their value can determine whether a business remains open. Australian Industry Group chief executive Innes Willox described the workplace relations system as broken and questioned whether the court would address its issues.
Rishworth expressed surprise at the early criticism, noting that small businesses could benefit from an efficient alternative to the Federal Court.
The proposal arrives as the government introduces other workplace changes, including $1.3 million in the 2026-27 budget for specialized support to simplify dispute processes for small businesses. The Fair Work Commission is also examining how artificial intelligence might assist with tribunal hearings, following a rise in claims partly linked to AI-assisted lodgements.
For now, the Fair Work Court remains a proposal. Its effectiveness will depend on unpublished details, such as its interaction with the Fair Work Commission, staffing, and whether it delivers the promised efficiency. Workers, employers, and legal experts will contribute to the final design.