Government must remove tax burdens to allow Australian retailers to lead jobs growth

 

PEAK retail industry body the Australian Retailers Association (ARA) welcomed the latest Ernst and Young report which confirmed Government employment data and highlighted the fact that the retail sector will lead jobs growth through to 2020. 

ARA Executive Director Russell Zimmerman said the Ernst and Young report also indicated that if the Government doesn’t remove obstructions such as Low Value Threshold (LVT) GST in relation to goods under $1000, this predicted jobs growth and overall jobs growth in the economy will be put at risk.. 

“There are several significant cost factors that have blocked jobs growth in recent years. Clearly, as indicated in this report, overseas businesses are getting away with paying no tax while Australian retailers must pay tax – and this is costing us Australian jobs. This significant cost to employment will continue unless urgently addressed. 

“The ARA represents both large and small independent retailers, including Australian online retailers, and our members see the impacts of overseas businesses avoiding taxes every day.

"Ernst and Young estimates more than 93,000 jobs have already been foregone to the growth of online retailing, and by 2020, more than 142,000 traditional retail jobs will have been lost. It is time to act to ensure these jobs can be transitioned within Australia.

“Australia can also not afford the $6 billion in lost GST revenue to the states between now and 2020 as a result of the LVT staying at $1000. A loss of $6 billion in GST revenue to fund our much needed community and emergency services is simply unacceptable. 

“The Ernst and Young report also shows some 87,990 jobs being generated over the next four years. 

"In states such as Victoria where there have been significant manufacturing job losses, we know firsthand that retailers are creating many valuable jobs such as support roles in the retail sector to make up for the employment slack. 

“The ARA continues to meet with the Federal Government and State Treasurers on reducing the LVT GST and is seeking meetings with new State Treasurers including the new Western Australian Treasurer to finalise its reduction. 

“Based on the Ernst and Young forecasts, when the LVT GST is abolished, between $10 billion and $16.8 billion will move back to Australian online and traditional retailers from overseas businesses. This is simply too important to ignore,” Mr Zimmerman said. 

ARA Executive Director Russell Zimmerman is a key note speaker at next week’s red tape reduction forum in Canberra.

As additional measures to help the retail sector, Mr Zimmerman will be advocating the need to remove red tape, address market dominance issues through efficient delivery and competition policy along with the need to have sensible workplace penalty rates put in place through the Fair Work Commission process.

s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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