The Fair Work Commission has announced Sunday penalty rates will be cut for hospitality, retail and fast food employees.
Public holiday rates will also be cut for full-time employees from 250 per cent to 225 per cent.
The Fair Work Commission has agreed with the Productivity Commission's argument there are likely to be some positive
employment effects from a reduction in penalties.
Fair Work Commission president Iain Ross said the commission took evidence from business owners that Sunday penalty rates had led employers to restrict trading hours and reduce staff levels.
"The evidence also supports the proposition that a reduction in penalty rates is likely to lead to increased trading hours, an increase in the level and range of services offered on Sundays and public holidays and an increase in overall hours
worked," he said.
Mr Ross said the changes would provide greater consistency to penalty rate settings in the hospitality and retail awards.
Hospitality workers will see their Sunday rates drop from 175 per cent to 150 per cent, while fast food workers will drop from 150 per cent to 125 per cent.
Retail workers face a cut from 200 per cent to 150 per cent for Sunday work.
