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.

"Certainly I don't think there's any problem with a memorial, I think there'll be a lot of people who will be wanting to attend that but to add another public holiday, as I said, at a time when many businesses have struggled is a bridge too far."

Even a half-day public holiday would still be costly for businesses, he said.

"We prefer not to have that."

He said there might be some businesses who voluntarily choose to close to observe the day of the memorial service.

"That's their choice, right? As opposed to having it imposed on them."

Cabinet decision

The Queen died on Friday (NZT) and will lie in state for four days before her funeral at Westminster Abbey on Monday September 19.

A government spokesperson has confirmed that the Cabinet will discuss the possibilities for a memorial service in this country.

A public holiday will also be considered.

Australian Prime Minister Anthony Albanese has confirmed the country will have a public holiday for the National Day of Mourning on 22 September.

The official proclamation of Charles III as Aotearoa New Zealand's new king took place at Parliament today, following a similar ceremony in the UK overnight.

-RNZ