Australia might be edging closer to a four-day workweek as unions renew calls for shorter hours and more paid holidays to boost productivity and improve work-life balance.
The proposal gains momentum ahead of the federal government’s economic reform roundtable in August, where Prime Minister Anthony Albanese and Treasurer Jim Chalmers will discuss long-term productivity strategies.
Unions are pushing to improve work-life balance. The Australian Manufacturing Workers Union (AMWU) and the Australian Nursing and Midwifery Federation urge reforms that reduce working time instead of traditional tax cuts. They argue that full-time workers deserve more time off after years of productivity gains without commensurate wage increases.
Unions push for “100:80:100” work model
The “100:80:100” model is central to the debate. In this tried-and-tested approach, workers receive 100% pay for 80% of their working time and pledge to sustain 100% productivity.
In the UK, a four-day week pilot across 61 companies saw 92% choose to continue with the new schedule. Employers reported steady or improved productivity, while employees noted reduced burnout, improved health, and better work-life balance.
Unions believe similar benefits could be seen in Australia. “One of the ways that we can share in productivity, if we’re more productive over the course of the week, is to work less hours,” AMWU National Secretary Steve Murphy said. “That would be a great outcome from a productivity discussion.”
The idea has also gained political traction. The Greens have formally backed it and called for a government-supported trial, while a Senate committee has recommended it as part of broader workforce reform.
Despite enthusiasm from unions and progressive lawmakers, business groups remain skeptical. According to the Australian Chamber of Commerce and Industry, a universal approach could burden small businesses and sectors, including healthcare and retail, where round-the-clock operations are essential. They argue that any change should be voluntary and industry-specific.
International momentum builds pressure at home
The Australian debate reflects a global shift. In South Cambridgeshire, UK, the local council made the four-day workweek permanent after a successful 15-month trial. In Hong Kong, a survey found 78% of professionals believe a shorter week improves productivity.
Meanwhile, Australian companies such as Unilever and Medibank have quietly experimented with shorter weeks, with positive employee satisfaction and performance results. These examples suggest Australia might be ready for broader implementation, provided political will aligns with worker demands.
With productivity growth at a near standstill and worker well-being a growing concern, the Australian government faces a key decision: stick with traditional reforms, or embrace a modern schedule that promises economic and personal rewards. The outcome of the August summit might set the tone for the country’s future of work.
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Once, L. (2025, July 22). UK’s South Cambridgeshire makes four-day workweek permanent. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/uk-south-cambridgeshire-four-day-workweek-permanent/
Chang, C. (2025, July 26). ‘Our brains are becoming overloaded’: Why workplaces are due for an update. SBS News. Retrieved from https://www.sbs.com.au/news/article/is-australia-due-for-a-four-day-work-week/1g8v1fyd0
