THE Australian Retailers Association (ARA) congratulates the Federal Government today on its decision to review the low value GST loophole as part of its tax white paper process in the New Year.

In a bid to protect retail jobs, the review has been backed by new Assistant Treasurer Josh Frydenberg who declared that retailers were operating ‘with one hand tied behind their backs’ due to the GST loophole that allows for goods under $1000 purchased from online retailers to be exempt from the goods and services tax.

ARA Executive Director Russell Zimmerman said Mr Frydenberg’s comments couldn’t be more accurate.

“At this time of year, more than ever, we realise how important retail jobs are to the Australian economy. You’ll only have to go near a shopping centre today – Boxing Day – to understand the importance of supporting employment in the retail industry.

“The LVIT loophole is costing thousands of retail jobs in Australia – a further 33, 000 jobs will be lost in 2015 in the discretionary retail sector, having already lost 80,000 jobs since 2007.

“At the end of the day this GST loophole has done nothing but damage our retail sector. Retailers have been forced to play on an uneven playing field for too long as the current system is does not reflect the realities of today’s marketplace.

“The ARA is therefore relieved to see Mr Frydenberg pushing for the issue to be addressed as soon as possible and we look forward to seeing what positive effects the closing of this loophole could have on local retailers in 2015,” 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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VECCI Chief Executive Mark Stone said VECCI welcomes the State Government’s introduction of the Back to Work Act to parliament and the priority the new government is placing on job creation.

"The fact this important piece of legislation has been introduced on the first parliamentary sitting day in the new term is a positive sign of the government’s focus on reducing business costs and stimulating employment," Mr Stone said.

"The Act will establish a $100 million fund to give payroll tax relief to businesses hiring unemployed youth, the long-term unemployed and retrenched workers into full time work. Employers will be eligible for a payroll tax rebate of up to $1,000 per employee to subsidise the cost of training, uniforms, transport and tools. 

"VECCI looks forward to working with the State Government to ensure all aspects of the Back to Work strategy, which includes the Premier’s Jobs and Investment Panel, Future Industries Fund, Regional Jobs Fund and Work with the World plan, are implemented as a priority and capitalised on to create productive and sustainable jobs."

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

vecci.org.au  

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PRE-CHRISTMAS shopping may be wrapping up tonight but retailers are preparing for another day of mammoth sales on December 26 with $2.072 billion expected to be spent on Boxing Day alone, representing a year on year increase of $72 million.

Despite New South Wales (NSW) being tipped to experience the highest levels of growth in post-Christmas sales between Boxing Day and 15 January 2015 (4.2 percent), Victorians are predicted to spend more than any other state on Boxing Day itself.

Victorians are tipped to spend at least $682 million on Boxing Day – out-shopping all of the other states including NSW ($584 million) and Queensland ($374 million).

ARA Executive Director Russell Zimmerman said it was obvious that ludicrous regulations to trading hours in some states, including NSW, have had a major impact on these projected Boxing Day sales figures.

“NSW is Australia’s most populous state, and yet Victoria easily takes the cake when it comes to expected Boxing Day sales. This equals a $98 million loss of trade to NSW retailers, with absurd and outdated trading restrictions largely to blame.

“The ARA is extremely concerned that retailers in some states across Australia are disadvantaged by restrictive reading hours that prevent them from opening their stores on Boxing Day.

“Consumers can buy online 24/7 but many bricks and mortar stores are still unable to open on, what is for many, the largest trading day of the year. We urge the government to review these restrictions as soon as possible.

“On a more positive note, those retailers that are preparing to open on Boxing Day are feeling very confident. If sales continue like they have over the past few days, the ARA and Roy Morgan Research predicated post-Christmas figure of $16.1 billion will certainly be exceeded,” Mr Zimmerman said.

Australian shoppers (aged 14 and older) are tipped to spend an average of $850 each from Boxing Day through to 15 January 2015, representing year on year growth of 3.6 percent.

ARA predicted Boxing Day spend (broken down by state):

 
ARA/Roy Morgan Research figures – post-Christmas retail sales: 

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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 Fair Work Ombudsman’s Small Business helpline has received more than 150,000 calls since it was established in December last year.

The priority service was created following a Coalition election commitment to provide quick and reliable information to small business operators around Australia.

Minister for Employment, Senator Eric Abetz said it was essential that small business operators had access to reliable workplace relations advice.

"With more than 150,000 calls in a year, the Small Business Helpline is assisting thousands of hardworking small business operators,” Minister Abetz said.

Minister for Small Business Bruce Billson MP said he regularly spoke with small business operators who were after information to assist them in their daily operations.

"Small business operators want to do the right thing and that’s why it’s so important we give them the right tools to help them, such as this priority helpline,” Minister Billson said.

Small business operators mainly called for assistance and information on wages, modern awards and conditions of employment under the Fair Work Act.

Small business operators can call the dedicated Small Business Helpline on 13 13 94.

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