WITH THE SCHOOL holidays drawing to a close in a few weeks, retailers across Australia are packing the shelves with back to school products.

The Australian Retailers Association (ARA) expects school shoes, uniforms, backpacks, lunchboxes and stationery purchases to peak in the coming weeks, as parents prepare their kids for the new school year.

The ARA expects many stores and shopping centres to shift their focus from the festive season to back to school supplies this month, as it is their biggest trading period of the year for these product categories.

ARA Executive Director, Russell Zimmerman says retailers providing apparel, footwear, stationary and technology will see a big boost in sales this month with the first day back at school rapidly approaching.

“The start of the new year is a milestone for each student around the country, and the purchases associated with back to school products are crucial to many small and large retailers,” he said.

“With the increased use of technology in our education system and more schools implementing 'Bring Your Own Devices', electronic retailers will likely see a surge in sales for laptops, tablets and other electronic learning accessories.”

Mr Zimmerman says although the cost of stocking up kids for the classroom can add up, savvy parents who are organised and seek out the best deals can minimise the pinch when it comes to purchasing these necessary items.

“Every year we see an increase in back to school supplies online,” Mr Zimmerman said, “And with many parents now back at full time or part time work, online platforms provide parents with the convenience and flexibility they need to prepare their children for the new school year.”

As the school year starts in late January, the ARA encourages those parents still in holiday mode to relax and enjoy the shopping experience, especially with post-Christmas discounts continuing right throughout the month.

“The next big discounting period after January will be mid-year sales in June, so I would encourage shoppers to spend their time in physical stores, enjoying the full customer experience and significant savings across the board,” said Mr Zimmerman.

The ARA and Roy Morgan Research predicts that shoppers will spend $17.2 billion nationwide, in the post-Christmas sales during the period from December 26, 2016 to January 15, 2017.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $300 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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BUSINESSES are being encouraged to provide feedback on how to make Government ICT contracts more accessible to small innovators.     

Assistant Minister for Digital Transformation Angus Taylor has called on technology companies, start-ups and digital providers to have their say.

“We’ve got to let the outside in; government needs to be porous. We need to open up our ICT contracts to smaller players to solve Government problems,” Assistant Minister Taylor said.

“How we work, how we buy goods and services, how we communicate, is being transformed by digital technology. Government is committed to improving the lives of all Australians through more effective digital services – the opportunity is too great to ignore.

“To capitalise on digital solutions in the private sector, we need to remove barriers for start-ups and SMEs who want to pitch their ideas and win Government ICT work.

“Procurement is the main gateway for the digital technology sector to provide solutions to government.

This gateway needs to be open and streamlined so that new technologies can be deployed quickly to improve public services.”

Speaking at an Open Opportunity forum in Canberra, Assistant Minister Taylor said a future procurement platform should be able ‘to ingest and provide technology’.

“In this framework you would be able to build on Government platforms to provide services and solutions. These solutions may be based entirely or partially on high quality Government data.”

Technology businesses are being encouraged to make a submission to the Commonwealth’s ICT Procurement Taskforce via a consultation paper, a website and upcoming roundtables.

The Taskforce is expected to report back to Government in early 2017.

To make a submission please visit the Department of Prime Minister and Cabinet website: http://www.dpmc.gov.au/ictprocurementtaskforce.

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IT IS TIME to up the ante on the turnover threshold associated with the small business entity definition, according to the Institute of Public Accountants (IPA).

“The $2 million dollar turnover threshold for small business that came into play in July 2007 has not been indexed since its introduction,” said IPA chief executive officer, Andrew Conway.

“The Board of Taxation’s 2014 Review of the Tax Impediments Facing Small Business recommended an increase to the threshold, noting that it would reduce the number of businesses who are at or near the current threshold and so face uncertainty as to their tax treatment.

“Increasing the threshold would also assist businesses with a higher aggregated turnover with low margins to access the concessions. 

“It is estimated that increasing the threshold to $10 million would allow an additional 90,000 to 100,000 businesses access to the full suite of small business tax concessions, decreasing their compliance costs and increasing cash flow.

“This would enhance the capacity to reinvest in small businesses, providing the opportunity for these businesses to grow with increased employment and wages.  It would also incentivise small businesses at or near the $2 million threshold to grow, as currently they would lose these concessions once they pass the threshold.

“According to ABS data, around 61 per cent of actively trading small businesses are non-employing. However, increasing the turnover to include small businesses in the growth phase is likely to contribute to employment growth as these businesses are already employing and in a position to increase their productive capacity. 

“The revenue foregone is likely to be substantially covered by the economic benefits from increased employment, higher wages and lower compliance costs.

“Increasing the threshold would allow more entities access to simpler depreciation rules, lower corporate tax rate and the newly enacted small business rollover restructure relief.

“The IPA recommends that small businesses with aggregated turnover of less than $10 million be given access to the small business tax concessions,” said Mr Conway.

 publicaccountants.org.au

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AN EXPERT in life cycle finance says changes to the Age Pension may lead some pensioners towards risky investments.

Professor Susan Thorp from the University of Sydney Business School has extensively assessed the changes to the Age Pension proposed in the 2015-16 Federal Budget that come into effect this year.

“Changes to the Age Pension Means Tests are likely to encourage wealthier pensioners to spend their savings more quickly than they otherwise would have and take on more financial risk,” Prof. Thorp said.

“Many pensioners, especially the less wealthy and more elderly, hold onto their financial assets into old age.

“However, historically, wealthier pensioners affected by the assets test spend their savings at significantly faster rates than full pensioners,” she said.

“This is partly because less wealth means a higher pension for this group. Recent changes encourage better-off retirees to use up their nest eggs faster, rather than preserve and pass their wealth on.

“Risky investments will also look a little more attractive to some pensioners. The new asset test means that the pension compensates for financial losses at a higher rate than previously.

“If assets fall by $1,000, the pension rises by $78 compared to $39 previously.”

www.sydney.edu.au

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