VICTORIAN RETAILERS BRACE FOR PENALTY RATE STRAIN

Written on the 19 August 2015

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.

 


Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter