PM Malcolm Turnbull says the government will respect the Fair Work Commission's call on penalty rates. Picture: Kym Smith

In Question Time, the Opposition leader accused the Prime Minister of doing “absolutely nothing to stop a pay cut for hundreds of thousands of workers”.

He moved to suspend standing orders to immediately debate measures to counter the Sunday penalty rates decision.

“If we hear one more time from this prime minister that women hold up half the sky and then he is not prepared to see them get half the pay, it shows what a rank hypocrite this man is,” Mr Shorten said.

Meanwhile, the Prime Minister continued state the decision was made by the industrial umpire - not the government - and that Labor’s scare campaign was a “populist” move.

He accused Mr Shorten again of trading away penalty rates during his time as a union leader.

“He is as experienced in trading away penalty rates as he is in giving away 457 visas,” Mr Turnbull said.

“An Olympic champion, a double gold medallist.”

Labor MPs continued to claim up to 700,000 people could be impacted by the penalty rate cutes despite new modelling released today which contradicts the estimates.

The Employment Department modelling, published in The Australian, includes people who work just one Sunday a year, undermining ­claims that up to 685,000 ­people stood to lose up to $6000 a year.

Prime Minister Malcolm Turnbull says the commission will work to minimise the impact on workers’ take home pay. Picture: Kym SmithSource:News Corp Australia

It comes as the Fair Work Commission calls for submissions on how the Sunday penalty rate cuts should be phased in.

The Prime Minister said commission was very conscious of the need to protect low-paid workers and would choose a transition method that would impact take home pay as little as possible.

The commission supports a transition to the new rates over two years.

“The idea is because pay is increasing every year the impact of the change in penalty rates is offset by the overall rise in wages,” Mr Turnbull told reporters in Canberra this morning.

“We certainly welcome transition arrangements that mitigate as far as possible, or offset, the impact on the take home pay packet,” he said.

Opposition leader Bill Shorten said talk of phasing in the rates was “out of touch”. Picture: AAP Image/Lukas CochSource:AAP

Mr Turnbull again refused to comment outright on whether he was in favour of the penalty rate decision but confirmed the government would make a submission to the commission.

“The evidence seems to be very strong that if you have lower penalty rates on a Sunday or a public holiday then there is more incentive, that it’s more affordable, for businesses to employ people,” Mr Turnbull said.

“But that’s one consideration and it has to be balanced out.”

Opposition leader Bill Shorten said talk of phasing in the rates was “out of touch”.

“We need to protect people’s take-home pay, full stop,” the Labor leader said.

“This fantasy idea that on July 1 this year people already receiving their penalty rates will keep them and that all the now employees will work at cheaper rates, I tell you what will happen — the rosters and the shift also go to the cheaper employees, not the more expensive employees.” “This is a government who lives on another planet.”

Senator Abetz wants the Fair Work Commission to grandfather wages for existing workers. Picture: AAP/Mick TsikasSource:AAP

Meanwhile, Liberal backbencher Eric Abetz is urging the Federal Government to make sure no current worker is worse off after the industrial umpire’s decision to cut some penalty rates.

Senator Abetz wants the Fair Work Commission to grandfather wages for existing workers and rule the penalty rate cuts can only apply to new retail, hospitality, and fast food workers.

“The arguments that it is an independent umpire’s decision and that Bill Shorten said he would respect the decision but has changed his mind are all interesting and valid debating points, but they are of cold comfort to our fellow Australians who face the prospect of a cut in their existing wages,” Senator Abetz writes in Fairfax on Thursday.

Earlier this week, Senator Abetz, a former Coalition employment minister, was named as one of the ringleaders of a push to undermine Malcolm Turnbull and get former Prime Minister Tony Abbott back onto the frontbench.

Treasurer Scott Morrison doesn’t agree with Senator Abetz. Picture: Kym SmithSource:News Corp Australia

Treasurer Scott Morrison brushed off Mr Abetz’s comments, saying the senator was entitled to his opinion.

The Prime Minister said he had not yet seen the remarks but the Fair Work Commission had indicated it was not in favour of his suggested method, known as “red circling”.

PM Malcolm Turnbull has stood by the decision to cut penalty rates. Picture: Kym SmithSource:News Corp Australia

The Employment Department’s figures which show as few as 285,000 workers could be impacted by the penalty rate changes were based on ­established work pattern studies and current employment statistics.

It suggests that as few as 25 per cent of the 1.14 million workers in that sector under the award or on in dividual contracts actually worked Sunday shifts.

And even on the outside assumption Sunday work trends had increased about 50 per cent since 2006, fewer than 460,000 workers would potentially be affected.

The decision to cut rates will affect the pay packets of more than 300,000 workers. Picture: Adam Yip/ The Manly DailySource:News Corp Australia

Speaking to ABC radio earlier this morning, the Prime Minister again defended the Government’s position to back the Fair Work Commission’s ruling.

“It has been an absolutely fundamental element of the Australian industrial relations system that penalty rates and awards, minimum wages, are set by the independent umpire, the Fair Work Commission, and its predecessors, rather than by government,” Mr Turnbull said.

“They’ve asked for some submissions on some technical issues.

“We’ll provide them with those.

“But the important thing is they have both the intent and the tools to ensure that the changes are phased in so that workers are not, as far as possible, not worse off in terms of this transition.”