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Government must remove tax burdens to allow Australian retailers to lead jobs growth

 

PEAK retail industry body the Australian Retailers Association (ARA) welcomed the latest Ernst and Young report which confirmed Government employment data and highlighted the fact that the retail sector will lead jobs growth through to 2020. 

ARA Executive Director Russell Zimmerman said the Ernst and Young report also indicated that if the Government doesn’t remove obstructions such as Low Value Threshold (LVT) GST in relation to goods under $1000, this predicted jobs growth and overall jobs growth in the economy will be put at risk.. 

“There are several significant cost factors that have blocked jobs growth in recent years. Clearly, as indicated in this report, overseas businesses are getting away with paying no tax while Australian retailers must pay tax – and this is costing us Australian jobs. This significant cost to employment will continue unless urgently addressed. 

“The ARA represents both large and small independent retailers, including Australian online retailers, and our members see the impacts of overseas businesses avoiding taxes every day.

"Ernst and Young estimates more than 93,000 jobs have already been foregone to the growth of online retailing, and by 2020, more than 142,000 traditional retail jobs will have been lost. It is time to act to ensure these jobs can be transitioned within Australia.

“Australia can also not afford the $6 billion in lost GST revenue to the states between now and 2020 as a result of the LVT staying at $1000. A loss of $6 billion in GST revenue to fund our much needed community and emergency services is simply unacceptable. 

“The Ernst and Young report also shows some 87,990 jobs being generated over the next four years. 

"In states such as Victoria where there have been significant manufacturing job losses, we know firsthand that retailers are creating many valuable jobs such as support roles in the retail sector to make up for the employment slack. 

“The ARA continues to meet with the Federal Government and State Treasurers on reducing the LVT GST and is seeking meetings with new State Treasurers including the new Western Australian Treasurer to finalise its reduction. 

“Based on the Ernst and Young forecasts, when the LVT GST is abolished, between $10 billion and $16.8 billion will move back to Australian online and traditional retailers from overseas businesses. This is simply too important to ignore,” Mr Zimmerman said. 

ARA Executive Director Russell Zimmerman is a key note speaker at next week’s red tape reduction forum in Canberra.

As additional measures to help the retail sector, Mr Zimmerman will be advocating the need to remove red tape, address market dominance issues through efficient delivery and competition policy along with the need to have sensible workplace penalty rates put in place through the Fair Work Commission process.

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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Phillip Island investment a win for Victoria, says tourism industry council

VICTORIA's announcement of $1.2 million in funding for the upgrade of the Nobbies Centre at Phillip Island.
 
“VTIC welcomes the State Government making tourism a priority and encourages further government investment in tourism infrastructure right across the state,” says Victoria Tourism Industry Council (VTIC) Chief Executive, Dianne Smith, who was at the launch today.
 
“It’s vital that our iconic tourism experiences are regularly refreshed. Rejuvenation of the Nobbies Centre and better activation of the surrounding boat tours will reinforce Phillip Island as one of Victoria's nature-based tourism jewels.”
 
This government funding underpins additional investment of a combined $3 million contributed by local tour operator, Wildlife Coast Cruises, and Phillip Island Nature Parks.
 
“We applaud the State Government and the private sector for working together for the benefit of visitors and the regional economy,” says Ms Smith.
 
Phillip Island relies hugely on the tourism industry, as it contributed $619 million to the economy (39 per cent of gross regional product) and employed approximately 5,000 people (33.5 per cent of regional employment) in 2011-12.
 
Phillip Island Nature Park is the biggest employer on the island.
 
Phillip Island is a popular destination for both domestic and international visitors to Victoria. The nature-based product (including the renowned penguin parade) is particularly popular with international visitors including those from China, which is one of the fastest growing tourism markets for Victoria.

www.vtic.com.au

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Int'l opportunities vital for Victoria’s continued economic growth

 

 

VICTORIA could achieve significant job creation and sustained economic growth from aviation, healthcare and international events if the areas are prioritised in the upcoming state budget, according to the state's peak employer body.
 
“Building Victoria’s international competitiveness must be a priority of the budget, so industries with demonstrated growth potential can take advantage of the opportunities presented by the Asian century,” says VECCI Chief Executive Mark Stone.
 
Mr Stone said exciting new R&D capabilities are being progressed in areas like carbon fibre and advanced materials. So too are many Victorian companies leveraging their expertise in primary production, food processing, logistics, branding and investment to help position the state as a food bowl to Asia.

“Healthcare is another good example of where our excellence in research, technology, human resources, products and services could be exported to service Asia’s growing demand for this industry,” says Mr Stone.
 
He said the government’s international engagement strategy is strongly supported by VECCI and the government should use the 2014-15 budget to accelerate and expand this effort, continuing to partner with industry to strengthen Victoria’s trade and investment presence in priority markets.
 
Mr Stone’s comments follow the release of the VECCI 2014-15 State Budget Submission: Accelerating Growth and Building Business Success.
 
Priority VECCI recommendations for building international competitiveness:
 
- Conduct a VCEC inquiry into the potential for increasing exports of Victoria’s healthcare services, including training, medical R&D and ICT healthcare management.   

- Establish an Aviation Industry Strategy that leverages off our aviation education, training, R&D commercialisation and maintenance, repair and overhaul (MRO) capabilities.    

- Prioritise funding for the expansion of the Melbourne Convention and Exhibition Centre (ensuring project completion by 2017) and attract more business events aligned to Victoria’s priority sectors (medicine, science, technology, engineering and education). 

- Host a biennial International Victoria Expo that brings exporters, relevant trade service providers, universities, international students, and chamber and consular representatives together to link Victoria’s international trade capabilities with potential partners or service providers. 

These priorities must be enacted in conjunction with a range of other recommendations to make Victoria a more competitive place to do business. VECCI also recommends raising the payroll tax threshold from $550,000 to $850,000, or alternatively reducing the payroll tax rate from 4.90 per cent to 4.70 per cent.
 
Mr Stone said new infrastructure has a vital role to play in helping business get its products and services to markets at home and abroad on time, and at low cost. 

“This is why the 2014-15 budget must not only reinforce the government’s intention to deliver Stage 1 of the East West Link, but also progress delivery of Stage 2, ensuring a future port and Western Ring Road connection,” says Mr Stone.
 
“The priority for government must be to help business succeed by making Victoria more competitive, leveraging more from our human resources to create a smarter state, ensuring we are truly international in our focus and activities, and ultimately creating a more liveable state.”
 
Read VECCI’s full budget submission at:
http://www.vecci.org.au/policy-and-advocacy/state-budget-summary

www.vecci.org.au

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Peak business body applauds passing of “move-on” laws

VECCI welcomes the Victorian Parliament’s passing of legislation to expand police powers to “move-on” people engaging in illegal picket line and protest activities, as it will protect the fundamental rights of business.
 
“The right to freely enter one’s premises is a fundamental right. People should be able to go about their business and earn a living without others preventing them from doing so or making them fear for their safety,” says VECCI Chief Executive Mark Stone.
 
“VECCI has been a strong and consistent advocate of the need for this legislation and we applaud the Government for securing passage through parliament,” says Mr Stone.
 
The legislation grants Victoria Police the power to issue move-on orders where a person is:
- impeding lawful access to a business premises; or
- obstructing others or traffic; or
- causing a reasonable fear of violence. 

“It is fundamental that clients, customers and suppliers are able to freely enter and exit business premises and that private property is protected,” says Mr Stone.
 
“A number of Victorian businesses have been subjected to illegal picket line activities and protests in recent years including the CBD blockade of Grocon’s Myer Emporium project. More recently, traffic has been affected by the East-West link protesters.
 
“There is no place for a vocal minority who do not respect the rights of others to engage in lawful work and business activity, so we welcome this action to ensure the rights of businesses are protected and that major projects are able to proceed.”

www.vecci.org.au

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Federal Opposition must support $48m red tape reduction - ARA

 

including the Paid Parental Leave Amendment Bill 2014 which was re-introduced today.
 
ARA Executive Director Russell Zimmerman said it is now more important than ever for the Federal Opposition to also support business and back the abolition of the ‘pay-clerk’ burden from the paid parental leave scheme along with other reductions in compliance burden.
 
“Red tape and over compliance are major issues for business owners. The Federal Government is trying to remove this burden from all businesses but the Opposition is yet to show their support - which comes at a severe cost to business.
 
“The current system is overly complex and burdens business with having to carry the costs of changing their payroll systems and the additional paperwork. We are calling on all parties to put politics to one side and focus on making life a little easier for business owners, in turn helping business and the economy to grow and increasing employment opportunities.
 
“Under the Federal Government’s plan to remove the ‘pay-clerk’ burden, businesses of all sizes would be relieved of the red-tape burden of acting as the ‘pay-clerk’ for the paid parental leave scheme unless the employer and employee both ‘opt in’ to having the employer administer payments.
 
“The ARA believes the Abbott Government’s intention to return the administrative burden back to the government is the right approach. We encourage the Opposition to stop playing politics on this issue and provide the support required for retailers to get on with the job of doing business,” 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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