Prime Minister Anthony Albanese has labelled an overhaul of workplace laws as a "win-win" for workers and employers.
The industrial relations reform, which would enshrine multi-employer bargaining, is likely to pass parliament this week after the government struck a deal with independent senator David Pocock.
Mr Albanese said the laws would see wages move after a period of stagnant growth.
"What we're doing is changing the system so that there is better bargaining across the board," he told ABC Radio on Monday.
"We create a culture where there's a recognition that it is in employers' and employees' interests to sit down and negotiate in a fair way to achieve win-wins."
Under agreed changes to the legislation, the government will set up an independent body to review social support payments before every federal budget.
Small businesses with fewer than 20 employees will be excluded from single-interest multi-enterprise bargaining.
Businesses with fewer than 50 employees will have extra safeguards if they want to opt out of multi-employer bargaining, while the minimum bargaining period will also be increased from six to nine months.
"It is about empowering the Fair Work Commission but it's also about empowering employees," Mr Albanese said.
"We want to make sure that this isn't something that is imposed, we want to make sure that both workers and business have an opportunity to have a fair input into the industrial relations system."
Workplace Relations Minister Tony Burke said the laws would bring businesses back to the negotiating table quicker.
"Getting rid of some of the red tape that we've got there will actually bring some of those businesses back to the table straight away," he told Nine's Today Show on Monday.
"You will see some workers where the (wage rise) movement happens very quickly, there'll be others where it's a longer process, but importantly, the framework will finally be there."
Senator Pocock said the changes he negotiated with the government struck the right balance.
"Clearly, there's a need to get wages moving and not everyone's going to be happy with that," he told ABC Radio.
"There are workers in Australia who need a pay rise. The cost of living and inflation is making it very hard for many people to make ends meet."
He said the independent committee that would examine social security payments would be critical.
"We talk a lot about cost and yes, this is something that we have to think about ... but let's remember that households are making equally tough decisions about whether they pay for medicines or pay for food," he said.
"This committee provides a pathway for better looking after the most vulnerable in our communities and we all benefit from that."
However, Nationals MP Barnaby Joyce warned the new laws would lead to more strikes.
"As enterprise agreements expire and the people are going to be shifting to these multi-party agreements ... this incites further industrial action," he told Seven's Sunrise.
"Small businesses (are) having to fork out $14,000 as part of the process that this legislation brings in. That was never told to anybody before the election."
Business groups have hit out at the laws, with Australian Industry Group chief executive Innes Willox saying businesses would be unfairly targeted.
"There's still an enormous amount of vagueness around who can get roped into multi-party bargaining," he told ABC Radio.
"There's no meaningful improvement there for employers or employees in resolving issues."
Australian Associated Press
