Business groups warn ACTU’s push for five weeks annual leave will spur inflation. Australian Industry Group Chief Executive Innes Willox said union calls for five weeks’ annual leave for full-time workers should be rejected.

“The ACTU’s demand is both predictable and predictably out of touch with reality,” Mr Willox said.

“Only those living in a fool’s paradise would argue for more leave with no productivity dividend in a country where businesses are under real pressure, where we can’t get near our targets on new housing or new energy rollouts and where one state is crazily proposing everyone should be entitled to work from home two days a week.

“An extra week off will solve none of these problems. It would just make them worse.

“This proposal falls into the category of ‘be careful what you wish for’. It should be immediately rejected.”