The Advertiser People’s Cabinet: Small businesses hit by public holiday penalty rates

One crippling cost is stopping Adelaide businesses opening during the school holidays as they demand to be heard by state leaders.

Indoor inflatable playground operator Daniel McKay should be making up during the school holidays for a sharp revenue downturn this year, blamed on the cost-of-living crisis.

But crippling public holiday wages costs are stopping small businesses, like his, opening over Easter and Anzac Day, they have told The Advertiser People’s Cabinet.

Six small business owners, including cafes and pet boarding, say they want leaders to tackle payroll tax, GST thresholds and other burdens that rob them of incentive to grow.

Mr McKay, who owns Inflatable World and Action Indoor Sports Modbury, has suffered a 10 to 15 per cent downturn this year alone, as repeat customers spend less.

Scott McGuinness Hedgegrove Pet Retreat; Simone Douglas, Duke of Brunswick Hotel; Lisa Ormenyessy, OMGhee food manufacturer; Daniel McKay Inflatable World and Action Indoor Sports Modbury; February Jameson, Honeyguide Digital Marketing; Nicolle Hahn, Pony and Cole cafe; Paul Starick, Editor At Large, The Advertiser. Picture: Ruicheng Liang

But the Easter and Anzac Day public holidays falling during the usually lucrative school holidays hike the wages bill – Inflatable World’s public holiday award rate is almost double that of Sundays.

“We’ve just made the policy now we don’t open on public holidays – it’s just too cost ineffective, basically – and we’d have to work public holidays ourselves to justify it, and then not get a break, because we don’t get a break at any other time,” Mr McKay said.

He wants federal leaders to deliver “something tangible” to encourage entrepreneurs and overcome “the lack of incentive for people to own businesses”.

Cafe owner Nicolle Hahn, who runs Hindmarsh’s award-winning Pony and Cole, said she too was not opening over Easter and Anzac Day, having endured a 20 per cent revenue slump in the past six months.

“I’ve got permanent part-timers but if I open on a public holiday, they’re double their normal rates. And I can tell you right now, we’re not going to be any busier … because of the cost of living,” she said.

Hedgegrove Pet Retreat owner Scott McGuinness said he could not afford to pay young staff who wanted to work over Easter at the boarding business, which he and his wife would operate.

“My employees are generally students, so this is the time they’re putting their hands out wanting to work to make money in the school holidays, but I can’t offer it to them now,” he said.

Digital marketer February Jameson said seeking extra work after losing a part-time job had pushed her Honeyguide firm over an $80,000 GST threshold, for which she urged an increase.

She also urged graduated relief from state payroll tax, saying this was robbing businesses of incentive to grow.

“They’re not growing because once they hit that threshold, they’re stung with a massive bill,” she said.

OMGhee food manufacturer Lisa Ormenyessy said small businesses were demanding to be taken seriously, given the jobs and economic return they collectively generated.

“It needs to be made clear that, as business owners, when we talk about support we’re not actually asking for handouts, we’re asking to be heard,” she said.

Originally published as The Advertiser People’s Cabinet: Small businesses hit by public holiday penalty rates