The addition of two extra public holidays in Western Australia will deliver a direct hit to small
and family businesses already being squeezed by rising costs.
Under the changes, Easter Saturday will become a holiday and a new weekday holiday will be
added in September, with both dates attracting penalty rates.
WA will now have the second highest number of public holidays in the nation.
CCIWA Chief Economist, Aaron Morey, said the move will hit businesses and the broader
economy.
“We calculated that the two extra public holidays will cost WA businesses more than $100
million each year,” he said.
“Small and family businesses will now have a touch choice to make. Do they open on these new
public holidays? Or do they close their doors and lose a day of revenue?”
Mr Morey said the decision comes at a time when WA businesses were already doing it tough.
“Base wages have climbed dramatically in the past few years, along with every other cost you
can think of, and it’s having a real impact on smaller businesses,” he said.
“Around 10% of hospitality businesses in WA have closed their doors in the year to April.
“The addition of two more public holidays is rubbing salt in the wound for these business
owners.”
Mr Morey said the changes could also have unintended consequences for workers.
“Many businesses will decide it’s simply too expensive for them to open on these extra public
holidays, and for casual workers like university students, that’s two extra days they won’t have
the opportunity to make an income,” he said.
“Even those who are able to add a surcharge would still be left out of pocket, because a 10% or
15% surcharge doesn’t come close to covering wages that are, on average, 250% above base
rates.”
CCIWA supports the government’s decision to bring WA’s other public holidays in line with the
East Coast.
“This move will make it easier for any business that works across multiple states or those who
have clients or suppliers on the East Coast,” Mr Morey said.
“With the Government’s decision on public holidays finalised, it is now vital that they turn their
attention to relieving the pressure on small and family businesses, including by lowering the
highest payroll tax burden in the country.”
