Federal Budget – retailers benefit from infrastructure, company tax reduction, reduced debt. Concerns over consumer confidence

 

 

PEAK retail industry body the Australian Retailers Association (ARA), representing the majority of Australia retailers, has welcomed moves in the just-released Federal Budget to get spending under control. Concerns remain, however, over the impact of increased taxes on consumers.

ARA Executive Director Russell Zimmerman said that while the ARA supports the Government’s reduction in spending to reduce debt, there are concerns over the impact that increased taxes will have on consumer spending and confidence.

“We are only just beginning to see retail and the services sectors regain momentum after many years in the doldrums. It would be a travesty if these tax increases impacted on that recovery to the sector and the services economy.

“The ARA commends the Government on reducing the long-term blow out in Government expenditure through a solid plan which will see supply chain improvements and efficencies through infrastructure spend.

“We commend the Government’s decision to abolish the carbon tax. The ARA has long campaigned for the removal of this unnecessary cost burden to retailers and consumers, and we are confident the decision to finally remove the carbon tax will be music to the ears of business owners.

“The ARA was pleased to hear $1 billion p.a in red tape will be removed – allowing retailers to get on with the job of doing business.

“The 1.5 percent cut on company tax for small business is also welcomed by retailers.

“We are still waiting, however, for a decision to be finalised on removal of the low value GST exemption for overseas goods under $1000.

“The ARA welcomes the establishment of the Industry Skills Fund ($476 million over four years). We will be looking to this fund to assist in the growing skills gap in the services sector, as this sector supports jobs growth. We hope to see the Industry Skills Fund start to bridge the gap between training and employment.

“Moves to support employees in the over 50s bracket to gain jobs could open the door to older workers entering the retail sector.

“Overall, this budget does deliver much needed structural change. What we need to see now is every effort made not to harm consumer confidence further with a clear long term plan from Government to support consumers through future tax cuts and short term support from agencies such as the RBA,” Mr Zimmerman said.

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Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’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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