Prime Minister Malcolm Turnbull says "masses of evidence" exist to support a reduction to some penalty rates by the Fair Work Commission, saying the changes will see more businesses open on Sundays and public holidays, and lead to job creation.
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Following days of criticism of the Coalition's response to pay cuts for workers in retail and hospitality, Mr Turnbull used a visit to a solar farm project in Queensland on Sunday to back in the move, in concert with Treasurer Scott Morrison and One Nation leader Pauline Hanson.
"We support the decision, we accept the decision, we recognise it was a careful decision and we respect it as decision of the independent umpire and there's masses of evidence to support it," Mr Turnbull said.
"The point about about the decision of the Fair Work Commission, which was very carefully considered, is that it will generate more jobs, more employment ... that will be a very significant benefit for the economy.
"They've heard hundreds of witnesses and they have come to the conclusion that reducing Sunday penalty rates, not right down to the level of Saturday penalty rates but closer to Saturday penalty rates, will result in more jobs, more opportunities, more businesses being open, more owners being able to not work on a Sunday and employ staff to do so."
Based on submissions given to the Fair Work Commission, it remains unclear whether cutting penalties will lead to more jobs being created. The commission heard from some business owners who admitted they would not hire more workers if Sunday penalty rates were cut.
An analysis of big retailers including JB Hi-Fi and Myer by Citibank found the penalty rate cuts would benefit shareholders but said nothing about the creation of more jobs, while some academic experts in workplace relations have also questioned the suggestion that more jobs will be created.
Speaking in Barcaldine, site of the 1891 shearers' strike and regarded as a birthplace of the Labor Party, Mr Turnbull said Opposition Leader Bill Shorten had thrown out the principles of independence in the setting of wages and conditions.
Earlier, Mr Morrison told Sky News Mr Shorten was being irresponsible in promising to pass new laws to make it impossible to cut penalty rates now and in the future.
"Any decision the unions don't like, he will reverse. That's madness," Mr Morrison said.
"He should be abolishing the Fair Work Commission if that's what he thinks is the way it should be."
Opposition employment spokesman Brendan O'Connor said Labor supported the work of the commission, which it established in government, just "not in this instance".
"We are still calling upon the Prime Minister to change his mind and join Labor to support low paid workers," he said.
