THE Australian Retailers Association (ARA) said retailers support the recommendation made by the Federal Government’s Financial Systems Inquiry (FSI) Murray Report to ensure credit card payment schemes fall under the same guidance as the two major card schemes for co-branded cards.

ARA Executive Director, and chair of Australian Merchant Payments Forum (AMPF), Russell Zimmerman said the three party schemes (where banks issue co-branded cards allowing systems like Diners and AMEX to avoid rules) are significantly hitting retailers’ bottom lines and this recommendation will benefit retailers and consumers.

The ARA also supports the tiered surcharging proposal where low cost payment systems, which could include three party credit card schemes will see surcharging removed but still allows a price indicator for higher cost schemes allowing retailers and consumers choice.

"The ARA and AMPF firmly believes that there is currently an unequal playing field with some card systems able to decide their own pricing model and choose if they wish to allow surcharging by the merchant. However, both Visa and MasterCard are regulated to ensure that merchants are rightfully not charged more than a reasonable Merchant Service Fee.

"As pointed out in the report proposals for surcharging standards should make surcharging standards simpler and more accurate, while encouraging system providers that are not subject to interchange fee standards to reduce their cost.

“All participants in the payments system must be treated fairly and equally. Regulations need to be broadened to include both three-party schemes (AMEX and Diners) alongside the currently-regulated four-party schemes (Visa and MasterCard).

“In principle, retailers do not believe in surcharging and in the vast majority of cases they don’t for the regulated low-cost two major card schemes. Where they do need to surcharge is on the unregulated high-cost schemes which then gives the consumer the choice of whether they use a high-cost unregulated surcharged card or a no-cost regulated card,” Mr Zimmerman said.

The ARA is pleased to see that many of our submission recommendations have been included in the report and that both the small and large retailers who put input into this process have been listened to.
 
Key points in the ARA’s FSI submission:

• Rule changes are required in relation to co-branded or companion cards issued by financial institutions and must include both three and four party schemes.

• Merchants should have the choice of routing for all payment transactions including, but not limited to, AMEX, scheme debit and contactless transactions, allowing the lowest transaction costs possible.

• As internet transactions increase (currently at 6 percent of total retail – expected to grow to 12 percent of retail sales by 2020) and technology changes rapidly from cards to mobile devices to new POS equipment, merchants will need to invest heavily in new technology. Merchants must be consulted as changes to the payment system occur as merchants are an integral part of the payments system.

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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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PARLIAMENT’s Joint Public Accounts Committee will examine the ANAO Performance Audit Report, 2014-15, No. 9: The Design and Conduct of the Third and Fourth Funding Rounds of the Regional Development Australia Fund.

The Regional Development Australia Fund (RDAF) was established in early 2011 as a nationally competitive, merit-based grants program with discrete funding rounds.  RDAF was one of the initiatives established to deliver on the then Government's September 2010 agreement with the Independent Members for Lyne and New England.

Committee Chair, Dr Andrew Southcott MP, said that the inquiry reflects the Committee’s important role of holding Commonwealth agencies to account for the efficiency and effectiveness with which they use public monies. 

“In the case of the RDAF, the ANAO concluded that there was not a clear trail through the assessment stages to demonstrate that the projects awarded funding were those that had the greatest merit in terms of the published program guidelines,” Dr Southcott said.

“The ANAO also concluded that substantial work remains to be done on designing and implementing regional grant programs in a way where funding is awarded, and can be seen to have been awarded, to those applications that demonstrate the greatest merit in terms of the program guidelines.  The ANAO also stated that there needs to be a greater adherence to the those guidelines, and decisions need to be made in accordance with the public interest and without regard to party political considerations.

“There are a number of issues which arise out of this report which need further public scrutiny.  These include the failure of the Department of Regional Australia to implement previous recommendations from the ANAO and the Ministerial decisions made in May and June 2013 which saw recommended applications in Coalition-held electorates rejected and projects in Labor-held electorates which were not recommended for funding approved.”

Interested persons and organisations are invited to make submissions to the Committee’s inquiry, addressing the terms of reference, by Friday, 13 February 2015.  

Further information about the Committee’s inquiry, including details on how to lodge a submission, are available on the Committee’s website at: www.aph.gov.au/jcpaa.

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THE Australian Retailers Association (ARA) today welcomes the announcement of the new Victorian Government Ministry.

ARA Executive Director Russell Zimmerman said the ARA has had a long and close working relationship with the Victorian Government and welcomes the opportunity to work with the new Labor Government as closely as previous Labor Governments.

“The ARA has welcomed commitments to fix Vocational Education Training (VET) and looks forward to working alongside the new Premier Daniel Andrews to make sure Victoria’s largest private employer, the retail sector and its skills are looked after.

“The ARA has met with all key Ministers in their opposition roles and believes the new government is committed to growing the Victorian economy and retail investment.

“With most major Australian and international retailers looking to base their operations in Victoria, the government will be looked on kindly as they keep business friendly policies in place and fix those such as VET which have been causing problems for the sector.

“The ARA will be seeking to meet new Ministers over the coming months on issues ranging from planning, small business support, tax and skills to infrastructure and red tape,” Mr Zimmerman said.

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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 the seasonally adjusted rise (0.4 percent increase) in monthly retail trade figures (month-on-month) reported today by the ABS followed a 1.2 percent rise in September 2014.

While October’s month on month growth was modest, year on year retail growth rose 5.7 percent (seasonally adjusted, compared to October 2013) - a positive sign for the retail industry.

ARA Executive Director Russell Zimmerman said retail sales were fairly slow in October thanks to the unpredictable weather and the reluctance of consumers to get a head start on their Christmas shopping.

“In seasonally adjusted terms household goods retailing rose 1.4 percent. Other industries which experienced rises were food retailing (0.5%), department stores (2.0%), clothing, footwear and personal accessory retailing (1.1%) and other retailing (0.2%). Halloween may have played a helping hand in these categories achieving a bump in sales as the event is becoming a bigger treat for retailers every October with a growing demand for lollies, spooky costumes, decorations and pumpkins.

“In seasonally adjusted terms the states which displayed rises were New South Wales (0.7%), Queensland (0.4%), South Australia (1.2%), Western Australia (0.1%) and the Australian Capital Territory (0.4%). Victoria remained relatively unchanged (0.0%). Tasmania (-1.0%) and the Northern Territory (-0.4%) both experienced a fall in sales.

“The Australian Retail Index (delivered by BDO and Retail Express) reported that the end of October saw all sectors showing slight but positive growth results, with the exception of furniture which dropped 2.3 percent. This sector is not traditionally influenced by the Christmas rush as much as other retail sectors.

“October’s modest results are somewhat expected and it will be interesting to see whether November’s results show a much sharper spike in sales when pre-Christmas shopping gets into full swing.

“The ARA is confident that retailers will achieve the expected $45 billion in sales between 15 November and 24 December, and we look forward to confirming these statistics in the New Year,” Mr Zimmerman said. 

MONTHLY RETAIL GROWTH (September 2014 – October 2014 seasonally adjusted)

Department stores (2.0%), Household goods retailing (1.4%), Clothing, footwear and personal accessory retailing (1.1%), Food retailing (0.5%), Other retailing (0.2%) and Cafes, restaurants and takeaway food services (-2.1%). Total sales (0.4%).

South Australia (1.2%), New South Wales (0.7%), Australian Capital Territory (0.4%), Queensland (0.4%), Western Australia (0.1%), Victoria (0.0%), Tasmania (-1.0%) and Northern Territory (-0.4%). Total sales (0.4%).

YEAR-ON-YEAR RETAIL GROWTH (October 2013 – October 2014 seasonally adjusted)

Household goods retailing (11.5%), Cafes, restaurants and takeaway food services (7.1%), Food retailing (5.7%), Other retailing (2.8%), Clothing, footwear and personal accessory retailing (0.4%) and Department
stores (-0.2%). Total sales (5.7%).

New South Wales (9.8%), Victoria (6.0%), South Australia (4.8%), Tasmania (4.0%), Western Australia (2.6%), Queensland (1.9%), Australian Capital Territory (1.4%) and Northern Territory (1.1%). Total sales (5.7%).

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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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