A key cabinet minister says cutting Sunday penalty rates could be good for the economy and should be examined by the Coalition government led by new Prime Minister Malcolm Turnbull.

Josh Frydenberg, who was last week promoted to cabinet as the new Minister for Northern Australia and Resources, said on Sunday that weekend penalty rates were an issue the government needed to a look at.

Federal minister Josh Frydenberg says cutting Sunday penalty rates could be good for the economy and should be examined by the Turnbull government. Credit:Sean Davey

It comes just days after Prime Minister Malcolm Turnbull said the politically sensitive issue would be up for consideration by his new team.

"Malcolm Turnbull's absolutely right to point to industrial relations as one area where it does cost business and ultimately it does cost jobs," Mr Frydenberg told the Ten network.