Tribunal decision raises concerns for youth employment and small business

Media Release | 1 April 2026

Jonathan Huston MLA
Shadow Minister for Deregulation; Small Business; Public Sector Reforms; Veterans


The Fair Work Commission’s decision to abolish junior pay rates for 18 to 20-year-olds has raised
concerns about the impact on youth employment and the viability of small and medium-sized
retailers.

Shadow Minister for Small Business Jonathan Huston said the WA Liberal Party supported more
young people entering the workforce and gaining valuable job experience, but there were concerns
this change could create unintended barriers.

He said while intended as a fairness measure, the Commission’s decision was expected to
significantly increase wage costs for many small businesses already operating on tight margins.

“For local retailers, labour is often their largest expense. Moving junior employees to full adult wages
represents a substantial increase, particularly when combined with penalty rates and
superannuation,” he said.

Mr Huston said the change would be challenging for many small businesses.

“This is a significant cost increase that many family-run businesses will need to carefully manage,”
Mr Huston said.

“When costs rise quickly, businesses may need to adjust — whether that’s through reduced hours,
fewer new hires or higher prices.”

Mr Huston said smaller retailers were likely to feel the impact most.

“Large businesses may be better placed to absorb these changes, but smaller operators — who are
vital to local communities — will face greater pressure,” he said.

He said entry-level roles play an important role in helping young people gain skills and experience.
“These jobs are often the first step into the workforce. It’s important we strike the right balance
between supporting workers and maintaining opportunities for young people,” Mr Huston said.

“Supporting small businesses is also key to supporting jobs. Ensuring reforms are practical and
balanced will help protect both.”

CONTACT: Jonathan Huston MLA – 0419 090 066