BusinessNZ says it does not support a public holiday to honour the late Queen Elizabeth II as Cabinet considers the move today.
Australia has already confirmed it will have a one-off public holiday for the National Day of Mourning on 22 September.
But BusinessNZ chief executive Kirk Hope told Morning Report the government had to be careful in making a call that would impose new costs on local business, even if it was just for this year.
Businesses had already suffered losses from the pandemic, he said.