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.
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