Proposal, not law

The AI "time dividend" proposal.

Labor's national conference asked the government to examine returning some of the productivity gains from AI to workers as time. It is a resolution, not a law, and it changes nothing about your leave today.

This is a proposal, not a law.Nothing on this page changes your leave entitlements. Labor's national conference asked the government to examine an idea. No bill has been introduced, no start date exists, and no mechanism has been settled. Your entitlements today are still the ones in the National Employment Standards.

At its 50th National Conference in Adelaide from 22 to 25 July 2026, the Australian Labor Party passed a resolution calling on the Albanese government to engage with unions and employers to examine how a "time dividend" could be returned to Australian workers from the productivity gains delivered by artificial intelligence.

That is the whole of it. A governing party's conference asked its own government to look into something. It is a genuine signal about where workplace policy may head, and it is worth knowing about, but it is several steps short of anything that would show up in your leave balance.

What was actually decided

The conference was a policy-setting event, not a sitting of Parliament. Its resolutions shape the party platform and signal intent; they do not amend the Fair Work Act 2009. On the workplace relations side, reporting from the conference described several outcomes, of which the time dividend was the least developed.

  • A Fair Work court.The ABC reported "a series of wins for unions, including the restoration of a Fair Work court to deliver simpler and faster workplace resolutions". This is the most concrete of the outcomes.
  • Same job, same pay and lockouts.The Australian Financial Review reported that the government will extend same job, same pay laws and restrict employer lockouts. The Australian reported that Workplace Relations Minister Amanda Rishworth backed legislating to limit employers' ability to lock out workers taking lawful industrial action.
  • The AI time dividend. Reported by both the AFR and The Australian as a call on the government to examine the idea with unions and employers. No timetable, no mechanism, no draft legislation.

What a "time dividend" does not mean yet

The phrase is doing a lot of work and has not been defined in anything we could verify. It could in principle mean a shorter standard week, additional leave, more flexibility, or nothing at all. None of those has been proposed as policy. Anyone telling you the four-day week is now Labor policy, or that you are about to receive extra annual leave, is reading far more into a conference resolution than it contains.

For scale, changing the standard week or the leave entitlement would mean amending the National Employment Standards, which currently set 38 ordinary hours a week and 4 weeks of annual leave under sections 20 and 87 of the Fair Work Act 2009. That is a legislative process with a bill, a parliamentary passage and a commencement date. None of those exist here.

What actually applies right now

Your entitlements are unchanged. The things that genuinely did change this year already have their own records:

If you want to know what you are owed today rather than what might be debated next year, the annual leave calculator and the long service leave calculator work from the law as it currently stands.

What would have to happen next

For this to become an entitlement rather than an idea, the sequence would be roughly: the government agrees to the consultation the conference asked for; that consultation produces a recommended mechanism; the government adopts it as policy; a bill is drafted and introduced; Parliament passes it; and a commencement date is set. Each of those steps can take months, and any of them can stop the process entirely.

The realistic near-term signal to watch is not legislation but whether the government actually convenes the consultation with unions and employers. The right to disconnect took years to travel that same path, and it began in a similar place.

We will update this page if it changes. If a mechanism is proposed or a bill is introduced, this post moves from proposal to change record and the badge above comes off. Until then, treat it as background rather than planning information.
Sarah Reid, CAHRI
Author & reviewer
Sarah Reid, CAHRI
Certified Australian HR Practitioner · Cert IV Payroll · 12 years Fair Work compliance

Sarah has spent over a decade advising Australian SMBs on Fair Work, NES compliance, and payroll. Based in Sydney, she has worked across hospitality, retail and professional services.