Labour rorts in Labor's sights as the Albanese government prepares to table major workplace reforms

Workplaces with existing enterprise agreements can currently bring on labour hire workers - who are directly employed by a third-party agency - and pay them a lower rate.

But the government's proposed reforms will empower employees and unions to apply to the Fair Work Commission for an order that labour hire employees be paid at least the rate set out in the enterprise agreement.

Industrial Relations Minister Tony Burke said the legislation would still allow for "labour hire when it comes to surge work, short-term arrangements and specialist staff". The change would not apply to small businesses.

The Department of Employment and Workplace relations estimates the reforms will only impact 67,000 workers. However, Mr Burke said for those affected, "closing this loophole will be life-changing".

The changes form part of Labor's much-anticipated Closing Loopholes bill; the second tranche of major workplace relations reforms the Albanese government has tabled since assuming office.

Mr Burke has previewed that Labor's bill would also give the Fair Work Commission the power to set minimum pay and standards for gig economy workers on digital platforms.

But not everyone is a fan of Labor's proposed changes.

The Australian Chamber of Commerce and Industry accused the minister of failing to clarify whether the changes would impact those doing odd jobs apps like Airtasker, or support workers on an app like Mable.

"Tony Burke cannot answer basic questions about whether providers of aged care, cleaning, and gardening services would be impacted differently depending on the platform they use," ACCI chief executive officer Andrew McKellar said.

"It appears that the government is just making it up on the run, making arbitrary distinctions between platforms and occupations, and leaving businesses to deal with the mess.

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The proposed changes would make it a criminal offence to deliberately underpay workers, with jail terms of up to 10 years and fines of up to $7.8 million (or three times the amount that was underpaid if that is greater).

Mr Burke on Sunday said he was surprised the proposal - which would also see greater power for union officials to examine company records - had been "controversial".

"The objective here is not to send people to jail, the objective is to make sure that people are paid properly," he told ABC's Insiders.

The Canberra Times on Saturday reported the government's bill also includes changes to make it easier for Commonwealth and ACT government first-responders to access workers' compensation for post-traumatic stress disorder.

The reforms, if passed, would reverse the burden of proof onto the employer, meaning workers won't have to prove their job significantly contributed to their PTSD when they make a compensation claim.

First-responders, including Australian Federal Police employees, ambulance officers, paramedics and firefighters, are among those who would be covered if the proposed changes are adopted.

Independent ACT senator David Pocock, who negotiated with the government for the changes, said: "By allowing insurers to presume that PTSD was caused by the job, it will mean that first-responders can get the support they need much faster."