115mpain Extrapublicholidayswillhurt W Abusinesses

Published in Business and Finance on Saturday, August 9th 2025 at 14:38 GMT by The West Australian
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Premier Roger Cook's plan for two extra holidays a year in WA would result in a $115 million disaster for local businesses, according to the state's peak business group.

Western Australia's Public Holidays: A $115 Million Annual Burden on Businesses, CCIWA Warns

In the sun-drenched state of Western Australia, where vast landscapes and a booming resources sector define the economy, an often-overlooked factor is quietly draining millions from business coffers each year: public holidays. According to a recent analysis by the Chamber of Commerce and Industry Western Australia (CCIWA), the additional public holidays unique to WA are imposing a staggering $115 million annual hit on local enterprises. This revelation comes at a time when businesses are already grappling with inflationary pressures, labor shortages, and the lingering effects of global economic disruptions, prompting a heated debate on whether these extra days off are a boon for workers or a barrier to productivity.

The CCIWA's report, which delves into the economic ramifications of WA's holiday schedule, highlights how the state observes more public holidays than most other Australian jurisdictions. While the national average hovers around 10 to 11 public holidays per year, Western Australia boasts 13, including unique observances like Western Australia Day (formerly Foundation Day) on the first Monday in June and the King's Birthday holiday, which falls on a different date from the rest of the country. These extras, the CCIWA argues, translate into lost working hours, mandatory penalty rates for essential services, and disrupted supply chains, all of which accumulate to form that eye-watering $115 million figure.

To break it down, the calculation isn't mere guesswork. The CCIWA employed a comprehensive methodology, factoring in average wages, the number of affected employees, and the productivity dip across various sectors. For instance, in retail and hospitality—industries that often can't simply shut down—businesses face the double whammy of paying staff at higher rates while dealing with reduced customer traffic or operational inefficiencies. A small cafe in Perth, for example, might shell out an extra $500 to $1,000 in wages for a single holiday shift, multiplied across thousands of similar operations statewide. Larger enterprises, such as those in mining and construction, experience cascading effects: delayed projects, overtime backlogs, and even safety concerns when skeleton crews are stretched thin.

CCIWA chief economist Aaron Morey has been vocal about these findings, emphasizing that the issue isn't about denying workers a well-deserved break but about balancing leisure with economic vitality. "Public holidays are a cherished part of Australian culture, providing time for family, rest, and community events," Morey stated in the report. "However, when WA has more of them than other states, it creates an uneven playing field. Businesses here are effectively subsidizing these extra days, which could otherwise be invested in growth, innovation, or hiring." He points to comparative data showing that states like New South Wales and Victoria, with fewer holidays, enjoy a slight edge in business competitiveness, potentially attracting more investment and talent.

This disparity has historical roots. Western Australia's holiday calendar reflects its unique identity as a vast, isolated state with a strong sense of regional pride. Western Australia Day, for instance, commemorates the founding of the Swan River Colony in 1829, a nod to the state's pioneering spirit. Yet, in an era of globalization and interconnected economies, such traditions are increasingly scrutinized through a fiscal lens. The CCIWA estimates that the $115 million loss equates to about 0.1% of the state's gross state product, a seemingly small percentage that nonetheless represents real opportunities foregone—think foregone expansions, deferred equipment purchases, or even job creations.

Business owners across WA have echoed these sentiments. Take Sarah Thompson, owner of a mid-sized manufacturing firm in Bunbury, who shared her frustrations in a CCIWA survey. "We love giving our team time off, but these extra holidays mean we're paying for non-productive days while competitors interstate keep chugging along," she said. "It's not just the direct costs; it's the momentum we lose. Planning around 13 holidays disrupts our entire year." Similarly, in the tourism sector, which ironically benefits from holidays through increased leisure travel, operators report mixed outcomes. While domestic visitors might flock to Margaret River wineries or Rottnest Island during long weekends, the overall economic calculus often tips negative due to staffing premiums.

The report doesn't stop at diagnosis; it proposes solutions. The CCIWA advocates for a review of the holiday schedule, suggesting options like consolidating some observances or aligning WA's dates more closely with national ones to minimize disruptions. They also call for government incentives, such as tax rebates for businesses operating on holidays or subsidies to offset wage penalties. "We need a modern approach that honors our traditions without handicapping our economy," Morey urged. This push aligns with broader national discussions on work-life balance, especially post-COVID, where flexible arrangements have become the norm, yet rigid holiday mandates persist.

Critics, however, argue that the focus on costs overlooks the intangible benefits. Unions and worker advocates, including representatives from the Australian Council of Trade Unions (ACTU), counter that public holidays boost mental health, reduce burnout, and stimulate consumer spending in non-essential sectors. "That $115 million isn't 'lost'—it's redistributed into the economy through family outings, barbecues, and local events," noted a spokesperson for UnionsWA. They point to studies showing that well-rested workers are more productive in the long term, potentially offsetting short-term dips. Moreover, in a state with one of the highest rates of fly-in-fly-out (FIFO) workers, extra holidays provide crucial time for reconnection, fostering social stability.

Economically, WA's position is unique. As Australia's resources powerhouse, with iron ore, gold, and liquefied natural gas driving exports, the state has enjoyed robust growth. The latest figures from the Australian Bureau of Statistics indicate WA's economy expanded by 4.2% in the last fiscal year, outpacing the national average. Yet, the CCIWA warns that complacency could erode this edge. With global competition intensifying—think China's dominance in commodities or emerging markets in Southeast Asia—any unnecessary cost could tip the scales. The report cites international examples, such as Singapore's streamlined holiday system, which balances cultural observances with business efficiency, as potential models for reform.

The debate has political undertones too. The current Labor government under Premier Roger Cook has historically supported worker-friendly policies, including the recent addition of Easter Sunday as a public holiday in some regions. However, with an election looming in 2025, business lobbies like the CCIWA are ramping up pressure for change. "We're not anti-holiday; we're pro-sustainability," Morey clarified. "If we can shave off even a portion of that $115 million through smarter scheduling, it could fund infrastructure or skills training, benefiting everyone."

As Western Australians prepare for their next long weekend, the conversation underscores a broader tension in modern economies: how to preserve cultural heritage while adapting to competitive realities. The CCIWA's analysis serves as a wake-up call, urging stakeholders to rethink the calendar not as a fixed tradition but as a tool for prosperity. Whether reforms materialize remains to be seen, but one thing is clear—the cost of doing nothing could be far higher than $115 million in the long run.

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Read the Full The West Australian Article at:
[ https://thewest.com.au/news/wa/wa-public-holidays-additional-days-creates-an-annual-115m-hit-for-business-according-to-cciwa-c-19605484 ]

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115mpain Extrapublicholidayswillhurt W Abusinesses

Western Australia's Public Holidays: A $115 Million Annual Burden on Businesses, CCIWA Warns