VICTORIAN RETAILERS BRACE FOR PENALTY RATE STRAIN

VICTORIAN RETAILERS BRACE FOR PENALTY RATE STRAIN

SMALL business owners in Victoria are preparing to feel the penalty rate pinch, after the government approved two extra public holidays for the state.

The introduction of Grand Final Friday and Easter Sunday pushes Victoria's public holiday tally to 13 the most of any state.

Australian Retailers Association (ARA) executive director Russell Zimmerman says the news comes at a high cost to businesses, as it means paying high penalty rates if they choose to open.

"Many Victorian retailers have indicated to the ARA that they will have no choice but to close their doors on these two days," Zimmerman says.

"Wages can be 50 per cent higher on Easter Sunday and 150 per cent higher on Grand Final Eve. Retailers face the difficult choice between remaining open and paying incredibly high penalty rates, or closing and losing sales or production."

Grand Final Friday and the iconic annual parade boosts visitor spending in the Melbourne CBD, with less consumers expected in the city during a public holiday.

"Grand Final Friday will have the greatest impact on the profitability of CBD retailers, as workers will not be in the city before AFL Grand Final, diminishing what has traditionally been a peak business period in the Victorian events calendar," Zimmerman says.

"There will be no wages transfer through higher penalty rates being paid or the traditional net benefit from tourism during AFL Friday as workers and businesses abandon Melbourne CBD to stay at home."

The ARA and Fair Work Australia are reviewing the General Retail Industry Award 2010, in a bid to reduce costs for retailers who trade on Sundays and public holidays.

 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Business success comes from thinking inside the box for TAXIBOX founder
Partner Content
On a first glance, the world of storage solutions might not seem particularly exciting ...
TAXIBOX
Advertisement

Related Stories

Will philosophy and ‘counterfactuals’ help us unlock the mysteries of AI?

Will philosophy and ‘counterfactuals’ help us unlock the mysteries of AI?

Artificial intelligence is increasingly being rolled out all around...

ACCC launches probe into misleading social media influencer posts

ACCC launches probe into misleading social media influencer posts

Australia's consumer watchdog is cracking down on social media ...

Takeover talks reignited between Tyro and Potentia Capital

Takeover talks reignited between Tyro and Potentia Capital

Talks of a potential takeover are back on between Sydney-based Tyro...

Select Harvests almond crop quality 'worst in 10 years'

Select Harvests almond crop quality 'worst in 10 years'

Wet weather has dampened almond quality for grower Select Harvests ...