The Australian labor market has undertaken various changes in its legislations in the past years. Such legislation includes the Work Choices Legislation, which has had significant effects on the labor market. Whereas these changes have had various positive and negative impacts, it has been argued that they have resulted to inequality in the labor market. This paper set out to examine this argument by examining the impacts of these legislations on various issues in the labor market. Issues examined include the effects of legislations on employability, gender, distribution of economic gains, income, and living standards. By examining statistics and exploring the arguments by different authors, it is concluded that the legislations have brought deepening inequality in the Australia labor market. Further, the legislations individualized industrial relations in the market thereby disadvantaging the Australian worker.