Mr Nikolic told Fairfax Media this week that penalty rates were curbing business growth and job creation in tourism and hospitality, arguing that the government must no longer be close-minded towards change.

He joined a long list of Coalition MPs calling for the existing wage regime to be reconsidered, with Employment Minister Michaelia Cash vowing to take any proposal to reduce Sunday penalty rates to the next election.

Mr Nikolic said he was aware of sensitivities surrounding weekend rates, but argued the government should not be afraid of listening to small business and industry groups on the topic.

"The fact is that many tourism and hospitality businesses in Northern Tasmania don't open during holidays because of high penalty rates and a lack of flexibility in negotiating with their staff," he said.

"Good governments must always remain open to an evidence-based policy discussion on issues that are so critical to our productivity and future prosperity."

Bass Labor candidate Ross Hart seized on Mr Nikolic's comments, saying any changes to penalty rates were economically unsound and would hit low-paid workers the hardest.

"Cutting penalty rates will only create greater inequality and disadvantage," Mr Hart said.

"These workers deserve a wage that reflects the time they put into a business on a weekend or public holiday, plus time spent away from their families and leisure activities."

He said many university students, single mums and parents in Bass relied on penalty rates to get by, and would stop spending money at small businesses if their weekend wages were reduced.

Mr Nikolic hit back at the critique, saying the "scare campaign" against industrial relations reform was "puerile and pathetic".

"Listening doesn't lock us into any particular course of action and we must never let the Labor-Green-union scaremongers stop us from listening to small business or being open to change," he said.