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AAP
AAP
Adrian Black

Penalty rates see hospitality sector 'haemorrhage'

Hospitality surcharges on weekends and public holidays are back in the headlines. (Lukas Coch/AAP PHOTOS)

The hospitality industry has defended surcharges on weekends and public holidays to help businesses cope with spiralling costs.

In 2025, one in 11 hospitality businesses, a record 9.3 per cent, closed in the 12 months to February, CreditorWatch CreditorWatch data shows, as higher wages, energy and insurance costs meet a lower discretionary spend as consumers battle rising costs.

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