By Paul Nicolaou | Executive Director, Business Sydney | Mob: 0419 400 038

Business Sydney today warned  many retail, hospitality and tourism businesses in the Sydney CBD and key visitor precincts are likely to stay closed this long weekend due to the cost of an extra public holiday in lieu of Anzac Day.

Executive Director Paul Nicolaou said these businesses would face the “triple whammy” impact of public holiday restrictions, penalty rates and rising operating costs, which would make trading unviable.

He said the Minns Government should have implemented  targeted relief measures for businesses that were already doing it tough.

“Anzac Day is rightly respected and protected but extending penalty-style conditions across the surrounding days is creating a compounding burden for businesses,” Mr Nicolaou said.

“We are seeing a perfect storm of higher wage costs, strict trading restrictions, and rising expenses across energy, insurance and supplies. The numbers simply don’t stack up for many operators.

“Saturday penalty rates applying to what is normally a standard trading day represents an immediate and significant cost increase.

“As a result, many cafes, retailers and hospitality venues will not open at all, or will significantly reduce their trading hours.

“This means fewer shifts, fewer job opportunities, and ultimately quieter streets in what should be a vibrant long weekend for Sydney.”

With Anzac Day falling on a Saturday, most non-exempt retail businesses in NSW are required to remain closed all day under retail trading legislation.

This regulatory change removes previously permitted afternoon trading for major retailers. Exemptions are limited to small shops and select businesses such as chemists, cafes and petrol stations.

Compounding the challenge, businesses that are able to open face significantly higher labour costs across the weekend:

  • Saturday attracts public holiday penalty rates despite typically being a standard trading day
  • Sunday penalty rates apply as usual\
  • Monday, a public holiday, sees wages rise to double time and a half

CBD hospitality operator Phil Barbaro, who owns six venues in the city, said he has made the difficult decision not to open over the weekend.

“The wage costs are simply too high. When you add penalty rates on top of already rising expenses like energy, insurance and fuel, it becomes unsustainable,” Mr Barbaro said.

“We want to open, we want to employ people, but the reality is we would be operating at a loss.”

Business Sydney said the NSW Government should have provided practical support to help businesses through the long weekend, including:

  • A payroll tax exemption for the duration of the long weekend
  • A one-off support payment of $1,000 for impacted businesses
  • Targeted energy cost relief

“In summary, businesses are facing higher costs, fewer jobs and quieter streets at a crucial time for them,” Mr Nicolaou said.

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