Fair Work Commission president Iain Ross has revealed a new option in the penalty rate debate.
President Ross said that there was one matter still to be dealt with prior to the Full Bench considering its Decision, and that matter would be completed by October 28, 2016.
The benchmarks set for the Commission require the Full Bench to release the Penalty Rates Decision by January 20, 2017.
Ross told a Melbourne conference this week some retailers have pushed for higher base wages.
"It should be possible to develop a schedule to the award which provides that employees are paid a higher, loaded hourly rate of pay in lieu of an entitlement to penalty rates," he said.
It is believed the move could benefit small businesses in particular, substantially simplifying the payroll processes.
Ross noted a provision in the hospitality sector allowing employees to trade penalty rates for a 25% increase in their base wage.