Sunday penalty rates paid in the four industries will be reduced from the existing levels thanks to the Fair Work Commission ruling.

Full-time and part-time workers in retail will have their Sunday penalty rates dropped from 200 per cent to 150 per cent of their standard hourly rate, while casuals will go from 200 per cent to 175 per cent.

Hospitality employees will face a reduction in Sunday pay from 175 per cent to 150 per cent, but casual hospitality workers' pay will remain unchanged.

Fast-food employees' Sunday rates will go from 150 per cent to 125 per cent for full-time and part-time staff, and casuals will go from 200 per cent to 175 per cent.

Federal Small Business Minister Michael McCormack said the new penalty rates could encourage growth in regional small businesses.

“We all know that small businesses … when they do get a bit more cash in their pocket they reinvest it into their business … they hire that young Australian,” he said.

“High penalty rates on a Sunday are a disincentive for some small businesses to operate.”

But many locals like retail worker Steven Cousley say they disagree with the minister.

“Sunday rates have been reduced by around 25 percent, that would probably average around $6 per hour,” he said.

“Adding another employee will cost more than $6 an hour, so it won’t improve employment, business owners will take more profit by reducing the wages of current employees.”

Local Katie Fisher said the move could actually backfire on small businesses in Young.

“I know plenty of people who won't be spending any money at these businesses because they can't afford it,” she said. “Seems their Sunday rates were cut and they're now giving up that lazy cafe day with family.”