SMEs back penalty rates cut proposal

Small business has backed a Productivity Commission recommendation calling for more flexible workplace arrangements.

A survey by business software provider MYOB found 40 per cent of retail and hospitality businesses believed a reduction in weekend penalty rates, as sought by the commission in its recently released interim workplace relations study, will bring down costs.

Twenty-three per cent say it will allow them to employ more staff.

The commission has called for Sunday rates to be lowered to the same rate as those paid on a Saturday.

MYOB boss Tim Reed said while the majority of the 400 small and medium-sized enterprises surveyed may not be directly affected by a reduction in weekend penalty rates, they fully support the proposal.

"This change would have a positive impact on our retail and hospitality businesses allowing them to reduce staff costs and invest the saving in the long term growth of their business," Mr Reed said.