The Australian Retailers Association (ARA) has hit back at a report conducted by the McKell Institute that found the Riverina economy would be up to $9.4 million worse off each year if penalty rates for retail workers were cut. 

The Economic Impact of Penalty Rate Cuts on Rural NSW study said that if penalty rates for retail workers were cut entirely or partially, rural retail workers in the Riverina, an agricultural region of south western NSW, would lose between $7 million and $24.8 million a year in take home pay.

ARA executive director, Russell Zimmerman, says claims that local economies in regional and rural NSW will lose out if retail penalty rates were to be reduced is “absurd”.

“A lower penalty rate would mean these retail employees would have the opportunity to work extra hours. We cannot ignore the major benefits for all involved, including additional hours retailers will be able operate, if penalties are reduced,” Zimmerman said.

“The idea that families, communities, and local economies of regional and rural NSW will lose out if retail penalty rates are reduced is quite absurd when you consider the fact that many large retail chains have had to close as many stores as possible on Sundays and public holidays to avoid paying penalty rates altogether.

“If these stores could afford to be open, they would in turn employ a number of staff on a Sunday and this would not only improve business in country and regional stores but increase employees discretionary spending.”