Business groups say new public holiday recognising Indigenous Australians is too costly

Business groups say creating a public holiday to recognise Indigenous Australians could cost the Australian economy 3 billion dollars.

Australian Chamber of Commerce and Industry chief executive James Pearson said the potential cost in foregone economic activity of an extra day off work should be factored in.

On Tuesday, Prime Minister Scott Morrison suggested a new national day to celebrate Indigenous Australians, in an effort to sidestep the growing calls to move Australia Day.