Budget provides confidence boost retail needs: ARA

THE Australian Retailers Association (ARA), has welcomed the Federal Budget’s moves to bring spending under control while announcing company tax cuts for small to medium business and personal tax cuts for consumers.

ARA Executive Director, Russell Zimmerman, said the ARA commends the Government on making a path to reduce spending while supporting consumer and business confidence in a soft confidence pre-election environment.

“Introducing new measures to support business and delivering stimulus to the hip pocket on top of the RBA interest rate cut will be just what the doctor ordered for retail,” Mr Zimmerman said.

“The ARA is pleased to see corporate tax cuts, which will help small to medium businesses and the millions of people they employ. On top of this effort, the work to offset bracket creep through personal tax threshold changes will be a boost for consumer confidence and spending.

“While tax cuts for small and medium businesses are welcome, whoever wins the election needs to cut company tax across the board to make Australia more attractive to international and local investment. There is no question that Australia’s company tax rates are excessive by international standards.

“The retail sector has seen a slow start to the calendar year with a lack of confidence triggered by the global environment and the pending Federal election. The ARA and the retail industry have been looking to both the Government and opposition to put more money back in people’s pockets while remaining economically responsible.

“Changes to international tax compliance are welcome, along with the Government’s commitment to fix GST loopholes such as the Netflix Tax and low value GST compliance on goods under $1000, due to be implemented mid next year.

“Superannuation changes should encourage low income earners to build a bigger nest egg while balancing higher income contributions in a responsible way.

“As Australia’s biggest private sector employer, retailers welcome the Government’s youth skills and jobs programme.

“Retailers in the convenience store and grocery space will be disappointed in light of the Government following the opposition in excise increases, which we know effects spending on other items - particularly for lower income earners.”

Mr Zimmerman said the phase out of the five cent coin would have little impact on retailers, given the growing use of electronic payments, with most retailers expected to round prices either up or down to the nearest 10 similar to the abolition of one and two cent pieces in the 1990s.

“What we need to see now is every effort made to strengthen our tax system to build consumer confidence with a clear long term plan from Government and Opposition following the election to support consumers and businesses alike,” Mr Zimmerman said.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $293 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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