THE Australian Retailers Association (ARA), has welcomed the Federal Budget’s moves to bring spending under control while announcing company tax cuts for small to medium business and personal tax cuts for consumers.

ARA Executive Director, Russell Zimmerman, said the ARA commends the Government on making a path to reduce spending while supporting consumer and business confidence in a soft confidence pre-election environment.

“Introducing new measures to support business and delivering stimulus to the hip pocket on top of the RBA interest rate cut will be just what the doctor ordered for retail,” Mr Zimmerman said.

“The ARA is pleased to see corporate tax cuts, which will help small to medium businesses and the millions of people they employ. On top of this effort, the work to offset bracket creep through personal tax threshold changes will be a boost for consumer confidence and spending.

“While tax cuts for small and medium businesses are welcome, whoever wins the election needs to cut company tax across the board to make Australia more attractive to international and local investment. There is no question that Australia’s company tax rates are excessive by international standards.

“The retail sector has seen a slow start to the calendar year with a lack of confidence triggered by the global environment and the pending Federal election. The ARA and the retail industry have been looking to both the Government and opposition to put more money back in people’s pockets while remaining economically responsible.

“Changes to international tax compliance are welcome, along with the Government’s commitment to fix GST loopholes such as the Netflix Tax and low value GST compliance on goods under $1000, due to be implemented mid next year.

“Superannuation changes should encourage low income earners to build a bigger nest egg while balancing higher income contributions in a responsible way.

“As Australia’s biggest private sector employer, retailers welcome the Government’s youth skills and jobs programme.

“Retailers in the convenience store and grocery space will be disappointed in light of the Government following the opposition in excise increases, which we know effects spending on other items - particularly for lower income earners.”

Mr Zimmerman said the phase out of the five cent coin would have little impact on retailers, given the growing use of electronic payments, with most retailers expected to round prices either up or down to the nearest 10 similar to the abolition of one and two cent pieces in the 1990s.

“What we need to see now is every effort made to strengthen our tax system to build consumer confidence with a clear long term plan from Government and Opposition following the election to support consumers and businesses alike,” Mr Zimmerman said.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $293 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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THE Institute of Public Accountants (IPA) has extended a well-deserved congratulations to one of its members: Jamie Johns and his firm Sky Accountants has featured in the United Kingdom’s AVN prestigious book: The world’s most inspiring accountants.

“It is great news and we wish Jamie and his team all the very best; it is indeed a triumph to be included in a book that features only the top 60 most inspiring accounting firms in the world ,” said IPA chief executive officer, Andrew Conway.

“It is not really a surprise considering how Sky Accountants has not only embraced technology but also leading the way in cloud computing.

“Jamie and team should be an inspiration to other accountants who must embrace the ongoing technological disruption facing businesses today.

“We also recognise that this accolade comes after Sky Accountants were awarded the winner of the 2015 Most Innovative Accountants Award in the Panalitix Annual Achievement Awards; a job well done,” said Mr Conway.

publicaccountants.org.au

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VICTORIAN Chamber of Commerce and Industry chief executive Mark Stone said the Federal Budget is likely to boost small business prospects in Victoria.

"Tonight’s Federal Budget delivers practical measures that will help Victorian businesses to become more competitive, increase productivity and create new jobs," Mr Stone said.

"This is a sensible budget leading into a federal election. The biggest employer of people in Victoria, small business, is the significant beneficiary.

"This budget coupled with last week’s State Budget further enhances the opportunity for business in Victoria to employ more people, grow, consider export opportunities and improve competitiveness," he said.

"Initiatives to lower the company tax rate to 25 percent over the next 10 years is in line with what the Victorian Chamber and business has been calling for to boost competitiveness and encourage growth."

Mr Stone welcomed the immediate tax relief available for small and medium businesses, with a cut to the company tax to 27.5 percent from July 1, 2016.
 
"Small businesses with an annual turnover of up to $10 million will now benefit through an extension of the instant asset write off scheme," Mr Stone said. "This will allow small and medium businesses to immediately deduct the value of every asset up to $20,000, providing much needed cash flow to these businesses.

"The new $840 million national Youth Employment Package will help up to 120,000 young people secure jobs. The internship program will provide employers with incentives to give young people real work experience and wage subsidies will be provided to employers who hire young workers under the program.

"This mirrors the Victorian Chamber’s own $1 million program to support internships for Victorian businesses and our call for more support for youth employment," he said.

"The announced $2.4 billion investment in Victorian infrastructure will improve the liveability of the State through investments in Melbourne Metro Rail, Murray Basin Rail, the Monash Freeway, the upgrade of the M80 Ring Road and urban and rural roads.

"A crackdown on multinational tax avoidance through a Diverted Profits Tax will impose a 40 percent penalty rate of tax on multinational corporations seeking to avoid paying Australian taxes by shifting profits offshore. This will provide a much needed level playing field for local businesses.
 
"It is refreshing that the budget has taken a considered approach to revenue and spending with a planned return to a balanced budget by 2020-21."

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au    

  

THE FEDERAL Government is now taking the final step in testing the market for private sector interest to upgrade, operate and add value to the registry functions of the Australian Securities and Investments Commission (ASIC Registry).

After a successful indicative bid phase where six indicative bids were received from a broad range of private sector bidders, the final bid phase will now commence.