Think broadly on penalty rates: Morrison

Federal Treasurer Scott Morrison is encouraging a broader debate about how penalty rates fit in with the entire tax system.

Federal Treasurer Scott Morrison is keen to hear broad ideas about how penalty rates can be reformed alongside a review of the tax system.

A caller to 5AA radio on Friday suggested to the treasurer that award rates could be the same seven days a week but Sunday could be classified as overtime and not taxed.

While not commenting directly on the proposal, Mr Morrison said: "I think it's very important that we have that sort of discussion about how does the overall system work better".