THE Australian Retailers Association (ARA) said retailers are relieved to hear that penalty rates in South Australia (SA) will be abolished on Saturdays and halved on Sundays in exchange for a higher base rate of pay and other improved conditions for employees.

ARA Executive Director Russell Zimmerman said the ARA has been leading the penalty rates case for a long time and was open to working with the Shop Distributive and Allied Employees’ Association (SDA) as part of its case to Fair Work to facilitate this agreement and broaden it across the country.

“It is very encouraging to see that the SDA has recognised that the current Sunday penalty rate is too high.

“The ARA welcomes any move that better aligns penalty rates with the modern retail industry. Changes like this allow businesses to respond to their customers needs, rather than having to try to fit their allocation of labour to an antiquated system.

“There is a real opportunity here to support the struggling retail sector and stimulate jobs growth. In order to create more employment opportunities for Australians, retail wages need to be flexible.

“We are hopeful that this agreement has a flow-on effect across Australia,” Mr Zimmerman said.

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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THE Australian Retailers Association (ARA) said over two million small businesses in Australia are likely to benefit from Minister for Small Business Bruce Billson’s decision to extend unfair contract term protections to small business.

ARA  Executive Director Russell Zimmerman said the retail industry has welcomed the Ministers announced provisions to further protect small businesses from unfair contract terms.

"Consumers are protected against unfair contract terms, however, small businesses have always struggled for the same level of protection.

“In simple terms, any proposal that protects small businesses against unfair terms in low-value standard form contracts is a positive step, as most small retailers have similar resources to consumers when it comes to protection.

“We are pleased to see the aim of this move is to support time-poor small businesses entering into contracts for everyday transactions, while not second-guessing their ability to manage their business.

“The Government and Minister Billson should be congratulated on this move, especially given all the disparate commercial forces and potential road blocks,” Mr Zimmerman said.

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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THE Government’s Intergenerational Report (IGR) indicates the need for better retirement planning and therefore, appropriate financial advice is essential, says the Institute of Public Accountants (IPA).

“The Intergenerational Report concludes that there will only be 2.7 working Australians to support every Australian over the age of 65 by 2055. Competent and affordable financial advice will be an essential ingredient in paving the way to sustainable retirement incomes and to help alleviate over-reliance on government funded pensions," said IPA chief executive officer, Andrew Conway.

“Allowing Australians to claim a tax deduction on financial advice will ensure better retirement outcomes and keep advice accessible and affordable.

“The IPA believes there is a strong case to support the tax deductibility of all of the costs of financial planning advice.

“Currently, a fee for service arrangement for the preparation of an initial financial plan is not tax deductible as it is not considered to be an expense incurred in producing assessable income.

“Changes to conflicted remuneration arrangements and the introduction of the best interests duty for the financial advice sector as part of the Future of Financial Advice reforms strengthen the case for the provision of deductible financial advice.

“The cost to Government will not be significant as these costs were previously fully deductible as commissions when paid to the financial planner.

“The tax deductibility of financial advice would considerably increase financial literacy, boost affordability and accessibility and reduce demands on public funding. It would encourage a larger numbers of Australians to seek financial advice. 

"The costs of a capped tax deductibility limit for financial planning advice will be significantly outweighed by the longer term benefits of assistance provided to tax payers as they plan for independent retirement,” said Mr Conway.

The IPA has made this recommendation in its pre-Budget submission 2015-16.  Further detail can be found at www.publicaccountants.org.au/2015budget

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VECCI has welcomed the Commonwealth Government’s announced measures to support a fairer marketplace and assist Victorian small business growth. 

"The extension of unfair contract term protections for small business recognises that small businesses often do not have the time, legal expertise or bargaining power to scrutinise and negotiate contract terms that bigger businesses have," VECCI Chief Executive Mark Stone said.

"The new protections will enable the courts to declare void a contract term that is unfair for the small business, such as those allowing a bigger business to unilaterally change the prescribed price or main terms of the agreement.

"We commend the Commonwealth Government for conducting a public consultation process prior to this announcement, as it is important that such reforms sensibly balance the interests of both small and large sized businesses," he said.

"With small businesses in Victoria accounting for 98 percent of all businesses in the state, and almost half of all private sector jobs, small business growth is vital to job creation.

"We look forward to the release of further information on how this important reform will be implemented."

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

vecci.org.au

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