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 super annuation,” 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
