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ABS December trade figures deliver 3pc annual Christmas growth for retailers

THE Australian Retailers Association (ARA) believes the December 2016 retail trade figures released today by the Australian Bureau of Statistics (ABS) illustrate a positive Christmas performance for retailers with a 3 percent growth year-on-year (seasonally adjusted).

ARA Executive Director, Russell Zimmerman, said this steady growth compliments the 3 percent year-on year growth in November 2016 as many families across Australia started purchasing their Christmas gifts early.

“This moderate growth in December sales is a positive sign for the industry and we remain hopeful that the ARA and Roy Morgan predicted pre-Christmas sales figure of $48.1 billion will be achieved once we finalise the numbers,” Mr Zimmerman said.

Although December 2016 sales showed no increase over November 2016 trade figures, Mr Zimmerman said the industry’s annual Christmas performance remains stable and the uplift in discretionary spend is exactly what the industry would expect.

As always, a number of categories saw a significant surge over the Christmas period. Clothing, Footwear and Personal Accessory Retailing lead the categories growing at 7.32 percent year-on-year, followed closely by Pharmaceutical, Cosmetic and Toiletry Goods (5.33% year-on-year).

“Even Newspaper and Book Retailing has shown a positive uplift from -6 percent during November 2016 trading, to an optimistic 0.91 percent growth due to many shoppers filling their Christmas stockings with popular book titles last year”, Mr Zimmerman said.

“We’ve seen a slight decrease in takeaway food services, which usually demonstrates strong growth, though we’ve also seen cafés and restaurants up 2.4 percent as more shoppers spent their holidays out and about enjoying their time with families and friends.”

The official closure of Masters during December took its toll on the Hardware category (1.76% year-on-year) down from 10.15 percent in November 2016 figures.

“We have seen an expected decrease in hardware figures temporarily, but now with reduced discounting and strong home price growth we can expect positive figures moving forward,” Mr Zimmerman said.

Though Department Store figures are still negative (-2.94% year-on-year), they are showing signs of marginal improvement. The category is making a gradual recovery from a downturn attributed to the recent restructure of a number of prominent department store retailers.

The states showing a healthy year-on-year growth include Tasmania (4.40%), South Australia (3.92%), New South Wales (3.37%) and Queensland (3.42%). While Victoria (2.96%), Australian Capital Territory (2.83%), Northern Territory (1.49%) and Western Australia (0.85%) aren’t leading the pack, they still demonstrated a positive growth over the December trading period.

In terms of online spend for December, the NAB Online Retail Sales Index indicates that e-commerce sales increased 10.4 percent year-on-year, with takeaway food and taking the lion’s share of growth on a category basis at 5.5 percent year-on-year.

“With online retail making up 7 percent of all retail sales, it’s double digit growth year-on-year is not surprising as e-commerce retailing is a key contributor to the retail industry as a whole,” Mr Zimmerman said.

MONTHLY RETAIL GROWTH (November 2016 – December 2016 seasonally adjusted)

Household goods retailing (-2.3%), Other retailing (-0.2%), Food retailing (0.5%), Clothing, footwear and personal accessory retailing (1.4%), Cafes, restaurants and takeaway food services (0.2%) and Department stores (0.3%). Total sales (-0.1%). 

Northern Territory (1.1%), South Australia (1.2%), Australian Capital Territory (-0.7%), Victoria (-0.4%), Tasmania (0.5%), Western Australia (0.6%), New South Wales (-0.3%) and Queensland (0.0%).

YEAR-ON-YEAR RETAIL GROWTH (December 2015 – December 2016 seasonally adjusted)

Household goods retailing (0.94%), Cafes, restaurants and takeaway food services (5.15%), Food retailing (2.89%), Clothing, footwear and personal accessory retailing (7.32%), Other retailing (4.27%) and Department stores (-2.94%). Total sales (3.02%).

New South Wales (3.37%), South Australia (3.93%), Tasmania (4.40%), Victoria (2.96%), Australian Capital Territory (2.83%), Western Australia (0.86%), Queensland (3.42%) and Northern Territory (1.50%).

 

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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IPA: push tax relief for small entities

THE Enterprise Tax Plan Bill is unlikely to pass through the Senate unless the granting of tax relief for large entities (turnover in excess of $10 million) is removed from the bill, according to the Institute of Public Accountants (IPA).

“By removing these entities at this point of time, the bill could successfully progress through Parliament and provide much needed tax relief for SMEs,” said IPA chief executive officer, Andrew Conway.

“The bill currently contains company tax relief for large entities over a 10 year period but these entities may have to wait as there seems little chance these reforms will pass through the Senate and their inclusion in this bill would therefore be at the detriment of other tax relief measures for smaller entities.

“We don’t oppose tax cuts for the larger entities but not at the detriment of smaller ones.

“With 61 percent of actively trading small businesses (turnover of less than $2 million) being non-employing, moving the tax threshold for access to small business concessions to entities up to $10 million can potentially contribute to more employment as such entities are already employing entities.

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

These recommendations form part of the IPA’s pre-Budget submission. 

 

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 35,000 members and students in over 80 countries.  The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.  The IPA was recognised in 2012 as Australia’s most innovative accounting organisation and listed in the top 20 in the 2012 BRW Most Innovative Companies List.  

publicaccountants.org.au

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Two Kimba landowners submit voluntary applications to host a National Radioactive Waste Management Facility

THE Australian Government has received two new voluntary nominations to host a National Radioactive Waste Management Facility from landowners in the Kimba region in South Australia.

The facility would hold Australian low and intermediate level waste largely associated with nuclear medicine production.

Minister for Resources and Northern Australia Senator Matt Canavan said no decision had been made as to whether the nominations will be accepted.

Under the National Radioactive Waste Management Act 2012, a landowner may nominate land to host this facility until a final site is decided upon by the Australian Government.

Both new sites will be subject to a comprehensive analysis, including scoring them on measures such as technical suitability, community wellbeing, health, safety, and the environment.

Details of the site selection process are available at www.radioactivewaste.gov.au/site-selection-process/assessing-site, and details of nomination guidelines and multi-criteria analysis are at www.radioactivewaste.gov.au/site-selection-process/nominating-site.

“The Government has always said it remains open to receiving new land nominations, and that each would be assessed on the individual merits of the site,” Minister Canavan said.

The two new nominations relate to different parcels of land than those that were assessed, but not progressed, in the Kimba region in 2016.

“I have asked my department to begin reviewing the new nominations, and advise as to whether either should be progressed further and shortlisted,” Minister Canavan said.

“If that is the case, and I progress a nomination, public consultation of no less than 60 days would begin to determine if broad community support exists to take this nomination to a further, second phase of detailed technical review and consultation.”

The second-phase assessment of a nominated site at Barndioota is continuing and includes an Independent Heritage Assessment, site-specific technical studies and detailed public consultation.

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Four major banks face further parliamentary scrutiny

THE House of Representatives Standing Committee on Economics will conduct further public hearings with Australia’s four major banks in March as part of its review of the performance of Australia’s banking and financial system.

The Chair of the committee, Mr David Coleman, MP, stated that ‘these hearings provide an important mechanism to hold the banking sector to account before the Parliament.’

The committee will continue to hold public hearings with the four major banks focusing on:

  • domestic and international financial market developments as they relate to the Australian banking sector and how these are affecting Australia
  • developments in prudential regulation, including capital requirements, and how these are affecting the policies of Australian banks
  • the costs of funds, impacts on margins and the basis for bank pricing decisions, and
  • how  individual banks and the banking industry as a whole  are responding to issues previously raised in Parliamentary and other inquiries, including through the Australian Bankers' Association's April 2016 six point plan to enhance consumer protections  and  in response to Government reforms and actions by regulators.

Public Hearing Details

Day 1: Friday 3 March 2017
Committee Room 2R1, Parliament House, Canberra
NAB
9:15am to 12:15pm

Day 2: Tuesday 7 March 2017
Main Committee Room, Parliament House, Canberra
CBA
9:15am to 12:15pm
ANZ
1:15pm to 4:15pm

Day 3: Wednesday 8 March 2017
Main Committee Room, Parliament House, Canberra
Westpac
9:15am to 12:15pm

The hearings will be broadcast live at aph.gov.au/live

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'Lion' makes over $11 million in 11 days at Australian box office

THE MAGNIFICENT success of the Australian film Lion continues, with the film taking $11.5 million in the 11 days since it was released in local cinemas.

Saroo Brierley’s incredible true story about love, hope and family has held the Number One position at the Australian box office for the second weekend in a row, a record for an independent Australian film.

The box office for the second weekend of release moves Lion further up the record books. The Great Gatsby is the only Australian film to have taken more on the second weekend. *

Following the exciting news last week that the film had received six Academy Award nominations, including one for Best Film, Lion is also winning the hearts of New Zealand audiences with a second weekend at the top of the local box office with NZD$1.2 million.

The Australian story continues to win hearts all around the world, having grossed almost $50 million in worldwide box office to date. Lion expands to over 1,800 screens in the US this Friday.

"It is so gratifying to see Saroo's story connect with audiences.  The positive feedback has been overwhelming.  At a time when the world seems to be fractured, LION offers hope and joy.  Its themes of love and family shine bright for audiences worldwide," said Richard Payten and Andrew Mackie from Australian distributor Transmission Films.

Lion is directed by Garth Davis from a screenplay by Luke Davies and it stars Dev Patel, Nicole Kidman, Rooney Mara, David Wenham and Sunny Pawar. See-Saw Films (The King’s Speech) produced the film in association with Aquarius Films and Sunstar Entertainment. Emile Sherman, Iain Canning and Angie Fielder are producers with Andrew Fraser, Shahen Mekertichian and Daniel Levin executive producing.

* Second weekend Box Office grosses for Australian films:

Great Gatsby - $4,561,335

Lion - $4,179,886

Mad Max: Fury Road - $4,169,178

Australia - $4,125,211

Happy Feet - $4,121,050

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