Business News Releases

Productivity Commission report shines a spotlight on high cost of doing business in Australia

PEAK retail industry body the Australian Retailers Association (ARA) today welcomed the Productivity Commission’s Relative Cost of Doing Business in Australia report which highlighted several areas that require immediate government attention including occupancy costs and deregulation of trading hours.

ARA Executive Director Russell Zimmerman said the report highlighted labour costs and rent as a share of revenue are much higher in Australia than in the United Kingdom (UK) and the United States (USA).

“There needs to be an open and honest conversation within the industry about the impact of trading hours on retail businesses. The Productivity Commission report noted many industry comments regarding retailer’s reluctance and inability to open their stores on a Sunday due to the impact of penalty rates and crippling costs of labour.

“The ARA was pleased to see highlighted in the report that the deregulation of trading hours is expected to increase economic activity and lower retailer’s costs of doing business as well as increase choice and convenience for consumers. Further, it could enhance employment opportunities for younger and older workers and those working part time or on a casual basis (findings 5.2).

“The report also noted the high cost of doing business particularly within the clothing and footwear sectors (almost double that of USA/UK). Labour costs to revenue ratios were notably higher for clothing and footwear retailers operating in Australia (findings 4.2).

“Occupancy cost ratios as a share of sales revenue are also higher here in Australia than in the UK, USA and Europe. We urgently need to look at zoning and planning as well as accessibility to information for retailers regarding rents. In relative terms, rent as a share of revenue is higher in Australia than the UK and USA at a broad industry level. Other costs have also risen including electricity (36%), insurance (34%), air-conditioning (21%), cleaning (19%) and repairs and maintenance (13%).

“While the portion of businesses that receive orders via the internet is growing, the report indicated that 38 percent of Australian retailers that were assessed could be called digital commerce laggards which is of course a cause for concern.

“The ARA will certainly be working alongside the retail industry and government to ensure the cost of doing business in Australia is sustainable.

“We look forward to the government’s response to these matters - now the Productivity Commission report has been finalised it is time for actions, not words,” 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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Government takes pressure off small business with revised Newstart plans, ACTU puts pressure on

 

THE Council of Small Business Australia (COSBOA) has congratulated the Abbott government and in particular Senator Eric Abetz, for listening to the concerns of small business and revising the proposal, featured in the budget, for job seekers to apply for 40 jobs per month down to 20 per month. 

Peter Strong, Chief Executive of COSBOA said that this change shows that the government has listened and responded to concerns of the small business community. 

“We’re very happy with the decision to change the number of applications job seekers need to complete. Due to the number of small businesses and the important role they play in our economy, it is important that the needs and concerns of small business are heard and considered in all national and state policy decisions,” Mr Strong said.

Despite this win today, COSBOA has also expressed great concern with a proposal from the ACTU for the mandatory conversion of casual workers into permanent positions.

“Casual workers choose to work as casuals for a variety of reasons and this decision should remain with them and the business owner. If a worker wants to be a casual, as it gives them more flexibility or a 25% loading on top of normal wages, then they should be free to do so,” Mr Strong said.

“There is also the real issue that small business owners are often reliant upon short-term contracts, seasonal variations in business or are at the mercy of Coles and Woolworths, and don’t have the certainty to employ  on a permanent basis; so it would be hard for them to give assurance  to their employees”.

“Small business in particular should not have all the problems associated with permanent employment thrust upon them, to do that would put businesses at risk and make employers think twice about employing staff. If we want more permanent employees we need to remove the fear of unfair dismissal from employers’ minds and make the paperwork easier,” continued Mr Strong.

http://www.cosboa.org.au/

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VECCI response to Victorian Labor’s 'Back to Work' strategy

VECCI Chief Executive Mark Stone has welcomed the announcement of 'Back to Work' -- Labor’s plan to create 100,000 jobs. 

"The plan has an important and timely focus on tackling youth unemployment, prioritising infrastructure investment, driving new industry growth and bringing more business to Victoria," Mr Stone said.

"The Back to Work Act: this is a step in the right direction as it acknowledges the important role payroll tax relief can play in generating new jobs. 

"The Premier’s Jobs and Investment Panel: the early identification and prioritisation of major infrastructure projects is vital to ensuring there is a long-term, independent focus on job-creating infrastructure. 

"The Future Industries Fund: this recognises the significant potential that Victoria can leverage from the competitive strengths that exist in our leading manufacturing and fast growing service sectors. 

"The Regional Jobs Fund: the $200 million boost to job-creating projects in regional Victoria and incentives to realise new export opportunities is positive. 

"Work with the World: this builds on Victoria’s success in international engagement with a strong focus on investment attraction and marketing to showcase Victoria’s emerging and growing industries in areas such as medical technology, new energy, food and fibre and international education," Mr Stone said.

"This announcement shows that the major parties are taking note of the priorities in VECCI’s Taking Care of Business election agenda and we look forward to more detail about these initiatives."

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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International education leaders gather in Brisbane

LORD MAYOR Graham Quirk will tonight officially welcome delegates to Brisbane for the Australian International Education Conference – the largest international education conference in the Southern Hemisphere.

“More than 1300 international education practitioners, teaching staff, researchers, policy makers are in Brisbane to learn about major industry trends and network with Australian and international colleagues,” Cr Quirk said.

“The Australian International Education Conference (AIEC) represents an economic impact for the city of more than $2.8 million, but its real value is far greater.

“The AIEC is one of the world’s top three international education conferences and the fact it will be held in Brisbane reinforces our growing global reputation for excellence in education delivery.

“International education is one of Brisbane’s biggest export industries with 75,000 student enrolments annually generating $2.8 billion in course fees and other spending.

“The Australian Government’s Export Finance and Insurance Corporation (EFIC) says education will be a standout export earner for Australia over the next six years, alongside tourism and agriculture.

“In July EFIC predicted that international student numbers are set to surge 30 per cent by 2020. Brisbane will be the first choice for many because of our world-class educational offerings, sub-tropical climate, affordability, community spirit and reputation for being a multi-cultural hub of creativity and innovation.”

Cr Quirk said that earlier this year Brisbane was ranked by the 2thinknow Innovation Cities Index in the top 15 per cent of cities worldwide for nurturing innovation.

“The 2thinknow Innovation Cities Index ranked Brisbane well above average for international students, describing us as a ‘global student city’ with an educated population,” he said.

The Australian International Education Conference is on at the Brisbane Convention & Exhibition Centre. Speakers include Australia’s Chief Scientist Professor Ian Chubb, Walkley Award-winning journalist and ABC News presenter Virginia Trioli and Dan Gregory, CEO of The Impossible Institute.

The conference runs from 7-10 October. For more information visit http://aiec.idp.com/

www.brisbanemarketing.com.au

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ABS August 2014 retail trade figures released TODAY (0.1 percent increase)

PEAK retail industry body the Australian Retailers Association (ARA) said the seasonally adjusted rise (0.1 percent increase) in monthly retail trade figures (month-on-month) reported today by the ABS followed a 0.4 percent rise in July 2014.

Although year on year retail growth rose 5.1 percent in August 2014 (seasonally adjusted, compared to August 2013) year on year retail growth in July was a much healthier 5.8 percent.

ARA Executive Director Russell Zimmerman said retailers enjoyed only a small increase in sales in August. 

“Consumers spent more on food retailing (0.3%), cafes, restaurants and takeaway food services (0.2%) and clothing, footwear and personal accessory retailing (0.3%) during August. Department stores suffered a decline in sales (-2.9%) as well as household goods retailing (-0.8%). It will be interesting to see whether next month’s figures show a rise in both household goods and department store retailing as we welcome the start of spring. 

“In seasonally adjusted terms the states which displayed rises were Victoria (0.7%), Northern Territory (1.7%) and Western Australia (0.1%), whilst South Australia and Tasmania were relatively unchanged (0.0%). The states which displayed falls were Queensland (-0.6%), New South Wales (-0.1%) and the Australian Capital Territory (-0.4%). 

“It’s no surprise Victoria experienced a jump in sales late August as Melbourne prepared for 2014 Melbourne Spring Fashion Week (MSFW). Over the years MSFW has showcased hundreds of local and international designers and continues to attract thousands of people into Melbourne’s retail stores. 

“The Australian Retail Index (delivered by BDO and Retail Express) also confirmed the stand-out performers for late August were Fashion & Accessories and Sporting & Recreational Goods - both categories up by over 8%. These results were even better than those seen in the same week in 2013, confirming that retail sales are in a healthier position than they were 12 months ago. 

“While we are hopeful that September figures will continue to highlight positive growth with the change in season encouraging consumers to update their wardrobes, it is imperative that the Federal Government and RBA do all that they can to ensure that retail trade is fully supported. The festive season is also fast approaching and interest rates must remain low in order to support business,” Mr Zimmerman said. 

MONTHLY RETAIL GROWTH (July 2014 – August 2014 seasonally adjusted) 

Food retailing (0.3%),  Clothing, footwear and personal accessory retailing (0.3%), Cafes, restaurants and takeaway food services (0.2%), Other retailing (1.6%), Household goods retailing (-0.8%) and Department stores (-2.9%). Total sales (0.1%). 

Northern Territory (1.7%), Victoria (0.7%), Western Australia (0.1%), Tasmania (0.0), South Australia (0.0%), New South Wales (-0.1%), Australian Capital Territory (-0.4%) and Queensland (-0.6%). Total sales (0.1%). 


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

Cafes, restaurants and takeaway food services (10.1%), Other retailing (6.0%), Food retailing (5.5%), Household goods retailing (4.2%), Clothing, footwear and personal accessory retailing (1.4%) and Department stores (-3.1%). Total sales (5.1%). 

New South Wales (8.4%), Tasmania (6.9%), Victoria (6.5%), Northern Territory (2.3%), Queensland (2.0%), South Australia (1.9%), Western Australia (1.3%) and Australian Capital Territory (1.0%). Total sales (5.1%).

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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