Self-interested state politics killing retailers on low value GST

PEAK retail industry body the Australian Retailers Association (ARA) said there is going to be no move on the LVIT GST issue unless self-interested state politics dramatically change in the near future.

ARA Executive Director Russell Zimmerman said politics had got the better of the process with Western Australia (WA), and the blame does need to be leveled at the WA State Government which is refusing to allow changes to the GST unless it gets a bigger share of the GST pie.

“Both the new and previous federal governments have been gradually, if sometimes reluctantly, moving forward on the issue. Ultimately, the final decision was placed on state governments that are not only the recipients of GST revenue but also any approve cost changes to collection.
 
“We know we have had heroes on this issue such as NSW Premier Mike Baird and Federal Small Business Minister Bruce Billson, but there now appears to be a villain in the mix.

“The villains working against the best interests of retailers, even in their own state, have been the WA Government.

“It has to be said this action tops the usual self-interested obscenity which has been witnessed over many years of federation by a number of state governments.

“The ARA, along with many of our members and associate association members, has been trying to get the WA Government to understand the impact this tax is having on its own local retailers. Unfortunately, the ARA and both our small and large retail members have so far failed despite many attempts to change minds in that state.

“What next? The only path to change is to never give up, and for that reason we will be re-engaging with all key stakeholders to once again push the case to change this unfair tax arrangement at all levels of government. We will also be sure to target those governments not acting in the best interests of their local businesses,” 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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