Prime Minister Anthony Albanese has defended the decision to declare a national public holiday next week to honour the Queen’s life.

Despite concern from medical and business groups about the ability to cope with the public holiday being called at such short notice, Mr Albanese said the one-off day on September 22 was the appropriate response to the death of the monarch.

“It is important that we acknowledge the contribution of Queen Elizabeth II over such a long period of time,” he told Sydney radio station 2GB on Tuesday.

“This isn’t a declaration that no one’s allowed to do anything on Thursday, September 22.”

The Australian Medical Association is concerned about the impact on surgeries, with hospitals already under strain due to a backlog caused by the COVID pandemic.

However, Mr Albanese said operations and other critical care would still go ahead.

“I’m sure that these issues, with a bit of common sense, can be worked through,” he said.

“If someone needs chemotherapy on that day, of course they should receive it.”

Mr Albanese moved to alleviate concerns from business groups that many would not be able to open due to penalty rates.

“There’ll be an enormous amount of activity on that day, I should imagine, just as there is on days like Boxing Day or on Australia Day, which are both public holidays as well,” he said.

The day of national mourning will include a memorial service in the Great Hall of Parliament House.

NSW Health Minister Brad Hazzard said people booked for surgery on September 22 should assume it would proceed unless they were contacted by the hospital concerned.

Tweet from @BradHazzard

The NSW government is already spending almost $1 billion to fast-track elective surgeries because of the backlog caused by the pandemic.

Mr Hazzard has instructed NSW Health to encourage all local health districts to retain as much of their planned elective surgery as possible, subject to staff availability.

In South Australia, retail trading hours will be similar to Anzac Day, which means shops must stay closed until midday as a mark of respect.

“Given the unavoidably late notice of this decision, there will be some disruption for some South Australians,” Premier Peter Malinauskas said.

Larger shops in Adelaide and the suburbs will be able to open from midday-9pm and workers will receive public holiday penalty rates, in accordance with employment agreements. SA schools and banks will be closed.

The SA government said it was still working through arrangements in public hospitals to ensure as many elective surgeries could go ahead as possible.

But it noted this was complicated by the closure of schools and childcare centres, affecting health workers’ ability to go to work.

Patients with bookings at SA public hospitals for September 22 are being told by the government not to contact their hospital until arrangements are finalised, which will be by Friday.

In Victoria, the day will be a normal trading day, as for grand final Friday, Boxing Day and other public holidays.

“Employers and employees seeking information about their rights and responsibilities regarding public holidays should seek advice from their business organisations or relevant unions,” the government said.

The Victorian government also announced the public holiday to mark the sovereign’s birthday on the second Monday in June will now be known as the King’s Birthday, instead of the Queen’s Birthday.

Queensland’s health department said on Monday it was still seeking advice on surgery and other arrangements.

-AAP