{"id":310714,"date":"2026-11-09T10:30:48","date_gmt":"2026-11-08T22:30:48","guid":{"rendered":"https:\/\/www.reckon.com\/au\/?p=310714"},"modified":"2026-10-30T10:06:24","modified_gmt":"2026-10-29T22:06:24","slug":"christmas-trading-costs-stay-open","status":"publish","type":"post","link":"https:\/\/www.reckon.com\/au\/blog\/christmas-trading-costs-stay-open\/","title":{"rendered":"Christmas trading costs: Should your retail or hospitality business stay open?"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.16″ da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” locked=”off” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.27.9″ header_2_font_size=”32px” custom_margin=”||0px|||” custom_padding=”||28px|||” header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n

Is it worth opening over Christmas and New Year, or should you close and take a well-earned break? What trading ultimately comes down to is how much it will cost you.<\/p>\n

Here\u2019s what staying open really costs and how to work out whether your trade will cover it.<\/p>\n

Factors to consider before calculating the cost to stay open<\/h2>\n

Two things impact your calculations the most: which days are public holidays where you are, and whether your staff are casual or permanent.<\/p>\n

Public holiday dates by state<\/h3>\n

With public-holiday rates up to 2.5 times the base rate across four public holidays, that adds up fast.<\/p>\n

Boxing Day falls on a Saturday in 2026, so every state and territory has declared a substitute public holiday on the Monday. Part-day holidays differ too \u2014 Queensland\u2019s Christmas Eve holiday starts an hour earlier than South Australia and the Northern Territory.<\/p>\n\n\n\n\n\n\n\n\n\n
Date<\/th>\nWhat public holiday is it?<\/th>\n<\/tr>\n
Thu 24 Dec 2026<\/td>\nChristmas Eve: Part-day public holiday from 6 pm in QLD and from 7 pm in SA and NT<\/td>\n<\/tr>\n
Fri 25 Dec 2026<\/td>\nChristmas Day: Public holiday everywhere<\/td>\n<\/tr>\n
Sat 26 Dec 2026<\/td>\nBoxing Day: Public holiday in most states (Tasmania observes it on the Monday; SA calls it Proclamation Day)<\/td>\n<\/tr>\n
Mon 28 Dec 2026<\/td>\nSubstitute holiday: Public holiday in every state and territory<\/td>\n<\/tr>\n
Thu 31 Dec 2026<\/td>\nNew Year\u2019s Eve: Part-day public holiday from 7 pm in SA and NT<\/td>\n<\/tr>\n
Fri 1 Jan 2027<\/td>\nNew Year\u2019s Day: Public holiday everywhere<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

That\u2019s four full public holidays within eight days from 25 December to 1 January, plus two part-days in SA and the NT. Check your own state \u2014 the NT Government lists both part-days<\/a> as 7 pm to midnight.<\/p>\n

Permanent vs casual: Your staff mix changes everything<\/h3>\n

Owners can overlook this detail, and it can cost you more than you think.<\/p>\n

Casual staff aren\u2019t paid for public holidays they don\u2019t work, so if your team is all casual, closing costs nothing in wages.<\/p>\n

Permanent staff, however, are very different. If the public holiday falls on a day they\u2019d normally work, they\u2019re entitled to their ordinary pay for that day<\/a>. So shutting up shop won\u2019t save you that money.<\/p>\n

If you run a retail or hospitality business, you\u2019ll likely have casual staff. ABS Working Arrangements data<\/a> puts accommodation and food services (~484,000) and retail (~425,200) as the two largest casual workforces in the country.<\/p>\n

What it costs to stay open over Christmas<\/h2>\n

Labour was the pressure point before penalty rates entered the picture. ABS Australian Industry data<\/a> shows labour costs across accommodation and food services rose 6.2% ($2.8 billion) in 2024\u201325.<\/p>\n

Public holidays multiply that base cost. Below is how the rate builds up for a Level 1 employee under each award (from 1 July 2026):<\/p>\n\n\n\n\n\n\n\n
\u00a0<\/th>\nHospitality (MA000009)<\/th>\nRetail (MA000004)<\/th>\n<\/tr>\n
Base hourly rate<\/td>\n$26.44<\/td>\n$27.81<\/td>\n<\/tr>\n
Casual, ordinary day (base + 25% loading)<\/td>\n$33.05<\/td>\n$34.76<\/td>\n<\/tr>\n
Permanent, public holiday (225%)<\/td>\n$59.49<\/td>\n$62.57<\/td>\n<\/tr>\n
Casual, public holiday (250%)<\/td>\n$66.10<\/td>\n$69.53<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Employers need to consider minimum engagement rules. Under clause 29.4(b) of the Hospitality Award<\/a>, a casual working a public holiday must be paid at least two hours, even if you only need them for one.<\/p>\n

How to calculate whether staying open is worth it<\/h2>\n
    \n
  1. Forecast the day\u2019s takings.<\/li>\n
  2. Multiply takings by your gross margin. That\u2019s the gross profit<\/a>, not revenue<\/a>.<\/li>\n
  3. Price up the roster (e.g. staff \u00d7 hours \u00d7 public holiday rate, plus super and workers comp).<\/li>\n
  4. Work out the result for opening and for closing.<\/li>\n
  5. Pick whichever loses less, or makes more.<\/li>\n<\/ol>\n

    [\/et_pb_text][et_pb_text admin_label=”Scenario” _builder_version=”4.27.9″ _module_preset=”default” text_text_color=”#0a004a” background_color=”#eeecff” custom_margin=”30px||||false|false” custom_padding=”20px|30px|30px|30px|false|false” border_radii=”on|20px|20px|20px|20px” box_shadow_style=”preset2″ locked=”off” global_colors_info=”{}”]<\/p>\n

    Example: Marty\u2019s Boxing Day call<\/h2>\n

    Marty runs a cafe as a sole trader with two staff. He\u2019s deciding whether to open on Monday 28 December, the substitute public holiday.<\/p>\n

    Marty\u2019s starting numbers<\/h3>\n

    A normal Monday takes in about $1,400. Marty is forecasting $900 for 28 December, with a lot of his regulars away. His food and coffee cost is 35% of sales, so his gross margin is 65%. That makes the day\u2019s trade worth $585 ($900 \u00d7 65%). He\u2019d need both staff for six hours each.<\/p>\n

    Let\u2019s look at two scenarios between casual versus permanent staff. Rates are from the Hospitality Award, Level 1<\/a>. Workers’ comp is shown at an assumed 2%.<\/p>\n

    Scenario 1: Two casual staff<\/h4>\n

    Casuals earn $66.10 an hour on a public holiday. If Marty closes, he doesn\u2019t pay them at all.<\/p>\n\n\n\n\n\n\n\n\n
    \u00a0<\/th>\nClosed<\/th>\nOpen<\/th>\n<\/tr>\n
    Gross profit<\/td>\n$0.00<\/td>\n$585.00<\/td>\n<\/tr>\n
    Wages (2 \u00d7 6 hrs \u00d7 $66.10)<\/td>\n$0.00<\/td>\n$793.20<\/td>\n<\/tr>\n
    Super (12%)<\/td>\n$0.00<\/td>\n$95.18<\/td>\n<\/tr>\n
    Workers’ comp (2%)<\/td>\n$0.00<\/td>\n$15.86<\/td>\n<\/tr>\n
    Result for the day<\/td>\n$0.00<\/td>\n-$319.24<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Scenario 2: Two permanent staff<\/h4>\n

    Say the same two staff are permanent and normally work Mondays. Their ordinary rate is $26.44 an hour, up to $59.49 at the 225% public holiday rate. The major difference here is that they\u2019re paid for the public holiday whether or not Marty opens.<\/p>\n\n\n\n\n\n\n\n\n
    \u00a0<\/th>\nClosed<\/th>\nOpen<\/th>\n<\/tr>\n
    Gross profit<\/td>\n$0.00<\/td>\n$585.00<\/td>\n<\/tr>\n
    Wages (2 \u00d7 6 hrs \u00d7 $66.10)<\/td>\n$317.28 (12 hrs \u00d7 $26.44)<\/td>\n$713.88 (12 hrs \u00d7 $59.49)<\/td>\n<\/tr>\n
    Super (12%)<\/td>\n$38.07<\/td>\n$85.67<\/td>\n<\/tr>\n
    Workers’ comp (2%)<\/td>\n$6.35<\/td>\n$14.28<\/td>\n<\/tr>\n
    Result for the day<\/td>\n-$361.70<\/td>\n-$228.83<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    This time Marty loses money either way. Closing still costs him $361.70 because permanent staff are owed ordinary pay for a public holiday that falls on a normal workday. Opening loses $228.83. So opening comes out about $133 ahead, but only because it loses less money.<\/p>\n

    Same cafe, same takings, but the staffing mix changed things.<\/p>\n

    [\/et_pb_text][et_pb_text _builder_version=”4.27.9″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

    Casual vs. permanent cheat sheet<\/h3>\n

    When planning holiday trading, use this easy cheat sheet to decide whether to close or stay open.<\/p>\n\n\n\n\n\n\n
    \u00a0<\/th>\nAll-casual team<\/th>\nTeam with permanent staff<\/th>\n<\/tr>\n
    Cost of closing<\/td>\nNothing in wages.<\/td>\nOrdinary pay for any public holiday on a normal workday.<\/td>\n<\/tr>\n
    Cost of opening<\/td>\nThe full public holiday rate.<\/td>\nThe public holiday rate.<\/td>\n<\/tr>\n
    Questions to ask<\/td>\nDoes the day\u2019s gross profit cover the full wage bill?<\/td>\nIs the loss from opening smaller than the wages you\u2019d pay to stay closed?<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Things to consider over the Christmas break<\/h2>\n

    Public holidays, wages, and employment mix matter, but you should also consider a few other factors before deciding on holiday trading.<\/p>\n

    1. Can you make staff take annual leave over the break?<\/h3>\n

    Usually yes, but the shutdown rules changed in 2023, so owners need to check a couple of things first.<\/p>\n

    If an award covers your staff and it has a shutdown clause, you can direct them to take paid annual leave, so long as the direction is reasonable and you give at least 28 days’ written notice. For a shutdown starting 24 December, that means telling them by about 26 November.<\/p>\n

    If no award or agreement applies, you can still direct annual leave where the requirement is reasonable.<\/p>\n

    Public holidays inside a shutdown aren\u2019t deducted from annual leave. The Fair Work Ombudsman states that public holidays during leave don\u2019t reduce your balance. And if you stay open, you can only request that someone work a public holiday. Under section 114 of the Fair Work Act, they can refuse if the request isn\u2019t reasonable, or if their refusal is reasonable.<\/p>\n

    2. What if someone doesn\u2019t have enough leave?<\/h3>\n

    You can no longer direct an employee to take unpaid leave during a shutdown. That rule changed on 1 May 2023.<\/p>\n

    If someone doesn\u2019t have enough accrued leave, you can agree in writing to unpaid leave, agree in advance to annual leave, find them work to do, or pay them their ordinary wages for the period. If they won\u2019t agree to unpaid leave, you\u2019re left with finding them work or paying them their normal wages.<\/p>\n

    Be careful of this with newer staff. Someone who started in September won\u2019t have two weeks up their sleeve by Christmas, so check balances now while there\u2019s still time to talk it through.<\/p>\n

    If you\u2019re bringing on extra people for the rush as well, make sure you\u2019re across all the ins and outs of hiring for your small business.<\/p>\n

    3. Telling customers you\u2019re closed<\/h3>\n

    Be explicit about your opening (or closed) hours. Post them on your front door, socials, Google Business Profile and your voicemail if you take bookings.<\/p>\n

    Update your Google opening hours because showing as open when you\u2019re shut is an easy way to lose business and get bad reviews.<\/p>\n

    Making the call to trade over the Christmas holidays<\/h2>\n

    Trading over Christmas comes down to cost. Here is a checklist to reference every Christmas to make sure it\u2019s worth trading:<\/p>\n