Businesses baulk at cost of bonus public holidays
Fraser Barton |
More days off in Australia’s largest state could cost in excess of $100 million a year, a business lobby claims.
The Western Australia government is taking submissions into the addition of two public holidays to its calendar.
WA already has the second-fewest number of public holidays in the nation with 11, two behind Victoria and the ACT, which have 13.
Eastern heavy-hitters NSW and Queensland both have 11, Tasmania 10, while South Australia and the Northern Territory have 12 full days.
There are seven national public holidays observed across all states and territories.
Adding two additional days off could cost employers $115.42 million every year, calculations from the Chamber of Commerce and Industry WA indicate.
A rise in public holiday wages for Easter Saturday would amount to $67.87 million and the addition of an undecided weekday public holiday, $47.55 million.
Small and family-owned business will be hit hardest off the back of already increasing costs, the Chamber claims.
“It’s clear that WA businesses can’t afford another two days where they’re paying someone $65 an hour to wash dishes,” Acting co-Chief Executive and Chief Economist Aaron Morey said.
“The sad fact is that many small and family businesses in WA are doing it very tough at the moment.”
The WA government sought feedback from the community, businesses and peak bodies on potential reforms to public holidays from July 13 to August 8.
A review of WA’s public holiday schedule aims to align the state with other jurisdictions nation-wide.
Existing state public holidays that are under consideration for change are the King’s Birthday, Labour Day and WA Day.
Businesses that add a public holiday surcharge would still be out of pocket, Mr Morey said.
“A 10 per cent or 15 per cent surcharge doesn’t come close to covering wages that are, on average, 250 per cent above base rates,” he said.
“Businesses that do choose to have a surcharge often face a backlash from their customers, and we know many consumers will reduce their spend when a surcharge is applied.”
Nepal claims the top gong of annual public holidays per year worldwide with 35.
AAP
