Australian Restaurant and Cafe Association CEO Wes Lambert criticised the plan, saying cash-strapped hospitality businesses would struggle to cover the public holiday penalty rates. “This is a terrible idea,” he said. “On public holidays, restaurants and cafes pay between 75 and 100 per cent of their revenue out in wages, so if the premier wants to add another public holiday, we’re going to advocate that restaurants and cafes around the state close.

The Australian Restaurant and Cafe Association (ARCA) said the “largely hidden” arrangement was quietly eroding the retirement savings of temporary workers, while requiring small operators to fund the contributions in full.

Employers have accused the federal government of exploiting migrant workers and slugging small hospitality businesses with a “hidden national payroll tax”, demanding reform of super­annuation tax arrangements for working holidaymakers.