THE Australian Retailers Association (ARA) said March’s modest retail trade growth of 2.15 percent year-on-year, released today by the Australian Bureau of Statistics (ABS), reflects the Government’s need to deliver on economic growth in tonight’s Federal Budget.

In lieu of February’s lacklustre trade figures, ARA Executive Director Russell Zimmerman said the disappointing statistics for March are a symptom of escalating operating costs and systemic economic pressures faced by Australia’s retail industry.

“The generally weak trade figures across the board appear to be caused by myriad of factors including low consumer confidence, political uncertainty, international competition and the effects of housing affordability on hip-pockets.

“These broader economic issues, combined with a number of challenges within the retail operating environment, are serving to stagnate rather than stimulate growth in the sector.” Mr Zimmerman said.

The prolonged warm weather during March also had an effect on specific retail categories, with the Clothing Retailing category experiencing a negative growth of -1.62 percent year-on-year as shoppers restrained from filling their wardrobes for the cooler months ahead.

Cafes, Restaurant & Takeaway Food Retailing (4.81%) also showed a decline in year-on-year trade growth, an outcome of reduced consumer confidence resulting in a hesitation to spend on non-essential items or experiences.

In regard to state-based figures, New South Wales (3.07%), Victoria (2.84%), Australian Capital Territory (3.09%) and South Australia (3.33%) showed relatively stable, albeit modest, year-on-year growth.

On the other hand, there is an apparent slowdown in year-on-year retail growth across Queensland (0.86%), Western Australia (0.20%), Tasmania (1.71%) and Northern Territory (-1.00%).

“Although the backwards growth trends across many states and categories is concerning, we remain positive in the potential economic relief for retailers through the Government’s Federal Budget later on tonight,” Mr Zimmerman said.

“As a critical part of the national economy, and the largest private sector for employment within Australia, we are hopeful of a practical package to preserve the viability of the retail industry.

“Retailers are looking to tax reforms, infrastructure investment and additional skills funding to stimulate the growth that the sector vitally needs.” Mr Zimmerman said.

MONTHLY RETAIL GROWTH (February 2017– March 2017 seasonally adjusted)

Food retailing (-0.5%), Household goods retailing (-0.1%), Clothing, footwear and personal accessory retailing (0.4%), Department stores (-0.6%), Other retailing (1.1%) and Cafes, restaurants and takeaway food services (-0.5%).

New South Wales (0.1%), Victoria (0.4%), Queensland (-1.3%), South Australia (-0.1%), Western Australia (0.1%), Tasmania (-0.2%), Northern Territory (-1.8%) and Australian Capital Territory (0.3%).

Total sales (-0.1%). 

YEAR-ON-YEAR RETAIL GROWTH (March 2016 – March 2017 seasonally adjusted)

New South Wales (3.07%), Victoria (2.84%), Queensland (0.86%), South Australia (3.33%), Western Australia (0.20%), Tasmania (1.71%), Northern Territory (-1.00%) and Australian Capital Territory (3.09%).

Food retailing (2.62%), Household goods retailing (0.56%), Clothing, footwear and personal accessory retailing (0.56%), Department stores (-2.77%), Other retailing (3.26%) and Cafes, restaurants and takeaway food services (4.81). 

Total sales (2.15%).   

ends

STATEMENT by QRC Deputy Chief Executive Judy Bertram:

"The Queensland Government has approved the mining leases for QCoal’s Byerwen coal mine, near Glenden.

"This announcement is a huge shot in the arm for the central Queensland economy with hundreds of jobs expected to be created during construction and once the mine is operational.

"This is a big dose of export growth for Queensland’s premium coking coal, which is why Japan’s JFE Steel is investing in the project. This mine will also be a significant economic contributor to local communities and the wider Queensland economy.

"QRC’s current data shows that in 2015-16, the state’s coal industry’s total contribution of $32.7 billion, supported more than 180,000 jobs. The coal industry spent $11.3 billion in Queensland on more than 10,700 local businesses and almost 500 community organisations.

"At last week’s spot prices of $224 US, at full production, this project alone would generate more than $450 million dollars extra a year in royalties for the Queensland Government that pays for nurses, doctors and teachers as well as important infrastructure."

www.qrc.org.au

ends

THE Tax and Revenue Committee will tomorrow hold the second public hearing of its inquiry into taxpayer engagement with Australia’s taxation system.

Committee Chair Kevin Hogan MP said as government services move online, building taxpayer confidence and trust in Australia’s taxation and superannuation systems is vital.

“To ensure Australians can engage with our taxation system confidently, online lodgement and tax assessment services must be—and must be seen to be—reliable, safe and fair," Mr Hogan said.

At the hearing, the Inspector-General of Taxation and expert witnesses from the Department of Prime Minister and Cabinet, Australia’s first Special Adviser to the Prime Minister on Cyber Safety, and the head of the Behavioural Economics Team of the Australian Government, will report on their work and its contribution to this objective.

Mr Hogan said that while the Committee’s inquiry aims to evaluate the scale of deliberate tax avoidance in Australia, it will also explore the causes of incidental non-compliance.

“We’ll examine how ‘behavioural insights’ approaches, whether visual, ethical or technological, can encourage tax payers to voluntarily meet their tax and superannuation obligations”, Mr Hogan said.

Public Hearing details: 4:15pm, Wednesday 10 May, Committee Room 2R1, Parliament House, Canberra

4:15pm - Inspector-General of Taxation
5:45pm - Department of the Prime Minister and Cabinet

The hearing will be streamed live at aph.gov.au/live.

ends

THE Institute of Public Accountants (IPA) is forecasting tomorrow’s Federal Budget to show some tough love in the war against Australia’s cash economy.

“It is believed that billions of dollars of Government revenue is potentially slipping through the cracks due to a cash-fed black economy, so it is only right that Government acts accordingly,” said IPA chief executive officer, Andrew Conway.

“The introduction of ABNs in 2000 was intended to make it more difficult to operate in the cash economy.

“The reality is that the cash economy has continued to grow and new integrity measures are required to curb its continual growth.

“Hard working small business owners are competing against entities that are not paying their share of taxes, creating an uneven playing field.

“The IPA is supportive of additional measures that will address the unfair advantages that some businesses have operating in the cash economy. The Government has put in place a host of measures to deal with multi-national tax avoidance; its intention will now focus on those who choose to operate in the cash economy.

“The Black Economy taskforce has tabled its interim report to Government and we expect some of those recommendations contained in the report to be announced on Budget night.  The taskforce is yet to finalise its final report and work is ongoing,” said Mr Conway.

publicaccountants.org.au

ends