Business News Releases

Measly year-on-year retail growth for May

THE Australian Retailers Association (ARA) said although May trade figures released today by the Australian Bureau of Statistics (ABS) are above market expectations, they represent a weaker lead-in to winter than retailers would have liked, displaying a 2.49 percent total growth year-on-year.

Russell Zimmerman, executive director of the ARA, said due to the slow lead-in to winter this year, May retail trade results portray a dim outcome for retailers across the country.

“Although May’s 2.49 percent year-on-year growth seems quite dismal, we need to take into account that this was before the second stage of the penalty rate reduction was implemented and the low-value import threshold (LVIT) GST was introduced,” Mr Zimmerman said.

“While the ARA are concerned with this meek growth, the retail industry received two big wins on July 1 and we look forward to the benefits this will bring our retailers, their staff and the overall economy.”

Food Retailing (3.71%) and Clothing, footwear and personal accessories (3.20%) remained strong, with both categories receiving over 3% growth year-on-year.

“The biggest growth across the ABS retail categories were Liquor (5.95%), Other Retailing (5.77%) and Specialised Food (5.06%) as these categories all received over 5 percent year-on-year growth,” Mr Zimmerman said.

“Another positive for May trade is the fact that Department stores have received their best figures since October last year, this could be because they began their mid-year sales earlier.”

Across the country, the Northern Territory (4.27%) continues to improve its upward trend, closely followed by Tasmania (3.82%) and Victoria (3.69%). New South Wales (2.86%), South Australia (2.35%) and the Australian Capital Territory (2.22%) remain steady, while Queensland (1.97%) received minimal year-on-year growth.

"Unfortunately, we’ve seen Western Australia (-0.74%) continue to struggle, returning to negative figures and significantly lagging behind the rest of the country," Mr Zimmerman said.

“The Northern Territory has received its best growth in over a year, which is an encouraging sign for retailers in the top-end of the country."

“And I’m pleased to say at the other end of the country, we can see confidence returning to Tasmania after the State election in March.”

Monthly retail growth (April 2018 – May 2018 seasonally adjusted) 

Department stores (3.87%), Other retailing (-0.09%), Food retailing (0.29%), Clothing, footwear and personal accessory retailing (2.23%), Cafes, restaurants and takeaway food services (-0.99%) and Household goods retailing (0.06%).

Tasmania (1.51%), South Australia (1.13%), New South Wales (0.51%), Queensland (0.43%), Northern Territory (0.41%), Victoria (0.23%), Australian Capital Territory (0.02%) and Western Australia (-0.45%).

Total sales (0.37%). 

Year-on-year retail growth (May 2017 – May 2018 seasonally adjusted)

Food retailing (3.71%), Clothing, footwear and personal accessory retailing (3.20%), Department stores (2.06%). Other retailing (1.58%), Cafes, restaurants and takeaway food services (1.44%) and Household goods retailing (1.12%). 

Northern Territory (4.27%), Tasmania (3.82%), Victoria (3.69%), New South Wales (2.86%), South Australia (2.35%), Australian Capital Territory (2.22%), Queensland (1.97%) and Western Australia (-0.74%).

Total sales (2.49%).

 

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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Are you ready for the 2018 Retail Realm?

THE Australian Retailers Association (ARA) is calling all retailers to put themselves forward to be recognised in the country’s largest and longest running national retail awards program, the 2018 eftpos ARA Australian Retail Awards.

This year’s awards titled, The Retail Realm: thinking outside the shop, will touch on every element in the retail sphere including customer experience, technology, payments, sustainability, supply chain, growth, employee development and corporate social responsibility.

Russell Zimmerman, ARA executive director, said the 2018 eftpos ARA Australian Retail Awards would celebrate the breadth of talent across the dynamic and ever-evolving retail landscape.

“Retail is an exceptionally important sector for the Australian economy, and this year’s event will be a great platform for progressive retailers to share their experiences inside and outside the shopfront to inspire future industry leaders to push the retail realm forward,” Mr Zimmerman said.

“As the largest private employer in the country, retail plays a vital role in the daily lives of all Australians and we would like to acknowledge these people who are the backbone of our society.”

With a myriad of Australian retailers eagerly anticipating the event on Thursday 18 October at the Myer Mural Hall in Melbourne, brands across the country are anticipating it to be the biggest and most noteworthy awards breakfast to date.

“This year, we have reimagined the awards and worked with industry experts to determine what constitutes the ‘best in retail’ across three categories - customer experience, retail workers and industry leaders,” Mr Zimmerman said.

“With 13 awards up for grabs, our panel of experts will be looking for exceptional retailers – from independently owner-operators, national brands, industry innovators and inspiring employees - who think beyond the shopfront.”

The 2018 eftpos ARA Australian Retail Awards echo the strength and diversity of Australian retail and the ARA are once again proud to acknowledge the achievement and talent of passionate retailers in the industry.

“Although retail is a vital part of the Australian economy, it’s important that we recognise the leaders and workers in retail through these awards as they are the heart and soul of the industry,” Mr Zimmerman said.

“As Australia’s leading retail peak industry body, the ARA continues to not only support the $310 billion sector but drive prosperity through its retail workers to ensure the longevity of Australian retail.”

The ARA encourage retailers of all sizes to submit an entry, or nominate an influential leader or instrumental employee before Friday 10 August via The 2018 eftpos ARA Retail Awards platform.

About the eftpos ARA Australian Retail Awards:

First held in the 1970s, the eftpos ARA Australian Retail Awards are the nation’s longest running and most prestigious retail event, recognising and rewarding outstanding retail businesses, innovations, and individuals across all sectors of retail. Relaunched in 2008, the annual 2018 eftpos ARA Australian Retail Awards breakfast will commence on Thursday 18 October at the Myer Mural Hall in Melbourne. For more information regarding the 2018 eftpos ARA Australian Retail Awards email This email address is being protected from spambots. You need JavaScript enabled to view it..

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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ABFEO SME report 'on song' says IPA

THE Institute of Public Accountants (IPA) has commended the Affordable capital for SME growth report released on Friday (June 29) by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), saying it reinforces many of the sentiments held by the IPA.

“The IPA congratulates ASBFEO for its comprehensive report on the plight of SMEs who struggle to grow their businesses due to the lack of adequate capital, finance and support,” said IPA chief executive officer, Andrew Conway.

“The recommendations are very consistent with that contained in IPA’s Australian Small Business White Paper and these will be reiterated in the upcoming second edition.

“The next edition of the white paper, which incorporates new research conducted through the IPA Deakin SME Research Centre, will reinforce the access to finance problems that so many small businesses face every day.

“Australia must do everything in its power to support small business productivity and growth for the sake of our economy.

“Facts borne from the ASBFEO report such as small businesses’ 57 percent contribution to GDP and the employment of 7 million people says it all.

“Our research confirms that small business continues to have problems with access to finance and capital; critical elements to support healthy cash-flow that underpins growth opportunities.

“It is also pleasing that ASBFEO included a recommendation for a government guarantee scheme.  The IPA has long advocated for a state-backed loan guarantee scheme for small business since inclusion in our first white paper.

“Australia is one of the only countries in the developed world without such a scheme.  In our view, a loan guarantee scheme would help increase the availability of much-needed, affordable loan finance to the small business sector.

“A limited State-backed guarantee would encourage banks and other commercial lenders to increase loan finance available to small business at affordable rates.  Access to responsible and affordable finance will help many small businesses reinvest in their businesses and help create new ideas, new capacity and new jobs."

publicaccountants.org.au

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Joint statement from National Electrical and Communications Association and Master Electricians Australia

Alan Brown, President of the National Electrical and Communications Association (NECA) and Tony Arnold, Chair Master Electricians Australia (MEA) have today released the following joint statement >>

A stronger and united voice for Australia's electrical contracting industry

For many years, the Australian electrical contracting industry has been represented by two organisations, the National Electrical Communications Association (NECA) and Master Electricians Australia (MEA).

Both organisations have worked tirelessly to advance the interests of their members and industry, to improve safety standards and statutory compliance for contractors, their employees, their customers, supply chain partners and the community.  Both organisations continue to provide services to their respective members, including technical support, training and business advice.

The organisations – through their members, Registered Training Organisations and Group Apprentice Schemes – also support the largest cohort of Electrical Apprentices in Australia.

In recent years it’s become clear that the industry would benefit from having a stronger and united voice as well as providing a more comprehensive suite of services to members. As a result, both NECA and MEA have listened to their respective memberships and have entered a memorandum of understanding.

This will allow the two organisations to collectively explore better ways to represent and be the single voice of a united industry.

These talks have been led by the two organisations’ national presidents – Alan Brown for NECA and Tony Arnold for MEA. The discussions to date have been focused on a single goal – to deliver a better deal for members. While the process is ongoing, there are a number of core principles guiding these discussions.

These principles include:

  • Keeping the best interests of all members at the absolute forefront of what we do;
  • Respecting the extensive history of both organisations;
  • Understanding the different needs and expectations of the two memberships;
  • Harnessing the power that combined advocacy to government would create;
  • Appreciating the high-quality staff employed by both organisations and their tireless commitment to serving members and the broader industry;
  • Providing the best possible deal for members, including the services and expertise of both organisations being made available to all members;
  • Providing the highest quality apprenticeship services to the industry;
  • Ensuring that the next generation of contractors is well represented; and
  • Recognising the huge opportunities in combined industry and networking events.

The final outcome of these discussions is still to be determined. However, there is considerable goodwill on both sides and we are confident that we can agree on a strong platform, and a united voice, all of which will result in a more prosperous and sustainable future for Australia’s electrical contracting industry. We will keep members informed as the discussions progress.

Whether you are currently a member of NECA or MEA - or both – you can be assured that this process will only strengthen your association and your industry. We look forward to a very bright future and working as one.

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A regulatory philosophy for the ATO?

THE House Tax and Revenue Committee will hold a public hearing tomorrow to consider the value of the Australian Taxation Office adopting a regulatory philosophy to govern its engagement with taxpayers and other stakeholders as services are digitised.

The Committee’s review of the performance of the Australian Taxation Office (ATO) for the 2016–17 tax year has looked at how operational standards and frameworks affect taxpayers’ experience, as well as considering the function of the ATO’s systems and services themselves.

The Committee chair Jason Falinski MP said, “As the ATO’s trajectory towards full digitisation of taxpayer services matures, public concerns about the imbalance in the power relationship between the ATO and the community have grown."

“Tomorrow, the Committee will review the currency of the Taxpayers’ Charter as the ATO moves to full digitisation of services and consider whether it might be timely to update it or introduce a Regulatory Philosophy document to better safeguard taxpayer rights and protections," Mr Falinski said.

Introduced in July 1997, the Taxpayers’ Charter was drafted to assist taxpayers understand their rights and obligations and to describe the ATO’s service standards, complaint handling and review procedures as the agency moved to a self- assessment model of compliance.

The hearing will feature the Inspector-General of Taxation, who conducted a review of the Taxpayers’ Charter in 2016; Professor Valerie Braithwaite, from the ANU’s Regulatory Institutions Network, who was involved in the design of the ATO’s compliance model under self-assessment; and an Executive Officer from the Civil Aviation Safety Authority (CASA) who engineered and implemented the agency’s Regulatory Philosophy to reduce risk and build community trust in the regulator.

Public hearing details: 9am to Midday, Friday 29 June 2018, Committee Room 2S3 Parliament House

The hearing will be broadcast live at aph.gov.au/live.

Interested members of the public may wish to track the committee via the website.

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Students go mining for careers at Mount Isa

STUDENTS from Brisbane to Queensland’s far north west will this week get up close and personal to mining careers when they attend an engineering camp in the iconic mining city of Mount Isa.

The would-be engineers will go onsite at Glencore’s Mount Isa Mine for the Make It Now in Engineering (MINE) challenge in which they’ll solve real-world problems.

They will be mentored and guided by Glencore staff, before presenting their project to senior Glencore mining professionals.

Meanwhile, local students from Mount Isa and Cloncurry schools interested in trades will work with Glencore apprentices who will help them to assemble a powered pushbike, using bike parts rescued from the dump.

The event will take place at the Spinifex College Trade Training centre where they’ll work in a simulated mine-site environment.

The bikes will be judged by Glencore Management and a winner selected based on criteria such as safety, design and attention to detail.

The camps, run annually by the Queensland Minerals and Energy Academy (QMEA) encourage students to consider science technology engineering and maths (STEM) related occupations and trade careers.

Manager of human resources for Glencore’s North Queensland operations Leanne Ryder said the company was very proud to support local kids to engage in STEM subjects through such an innovative program.

“These camps are highly regarded by Glencore as we know a high proportion of students who attend end up on STEM or trade career pathways,” Ms Ryder said.

“This program is really important in not only demonstrating the kind of careers kids can pursue in resources, but also in equipping the next generation of technical specialists with the skills they need to drive and grow the sector, which plays such a critical role in the health of our nation’s economy.”

The QMEA is a partnership between the Queensland Resources Council (QRC) and the Queensland Government under its Gateway to Industry Schools program. It has 46 schools throughout Queensland.

QRC is the peak representative body for Queensland ‘s resource sector. The Queensland resources sector provides one in every $6 dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses across the state, all from 0.1 percent of Queensland’s land mass.

www.qrc.org.au

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Tax cut reversal a threat to family businesses - NECA

THIS week’s announcement by Labor, indicating they will reverse the recently implemented company tax cuts if elected to Government, is a threat to Australia’s family owned and operated small and medium businesses (SMEs).

“Company tax cuts announced in the 2018/19 Federal Budget, are good news for SMEs. They are sensible measures that help to deliver employment and investment opportunities for thousands of businesses and tradespeople. A reversal of these measures will have a significant and negative impact upon employment growth and the uptake of trade apprenticeships in Australia,” said Suresh Manickam, CEO National Electrical and Communications Association (NECA).

A significant number of Australian businesses are family owned SMEs with turnovers within the $10-$50 million bracket. It is these businesses, their employees and apprentices that will feel the brunt of Labor’s tax policy.

"It’s a kick in the guts to Australians who seek to get ahead," said Mr Manickam.

“Reversing these tax cuts creates economic uncertainty by undermining the Government’s long-term strategy of tax relief – and it's definitely not in the best interests of the electrical contracting sector. We're perplexed that the Henry Tax Review, commissioned by the former Labor Government, recommended a reduction in company taxes, and yet the current ALP leadership is recommending the opposite. NECA is struggling to understand this new position taken by the Opposition,” he added.

NECA calls upon the Opposition to reflect upon this announcement, and to reassess its position in the interests of national employment opportunities, apprenticeship growth, encouraging family businesses and the maintenance of a responsible and efficient tax system for Australia.

About NECA:

NECA is the peak industry body representing the interests of electrical and communications contractors Australia-wide. Membership comprises over 5,000 contracting companies with over 50,000 employees. NECA wholly-owns Registered Training Organisations and Group Training Organisations in NSW, VIC & WA, the EcoSmart Electricians initiative, ACRS (a national cabling registrar) and has a joint venture with NESS Super in NSW. NECA employs around 2000 apprentice electricians, training a further 2000.

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QMEA school recognised for industry partnership

THE Queensland Resources Council has congratulated Thuringowa State High School (SHS) – one of 46 Queensland Minerals and Energy Academy schools across the State – on a State Government regional Showcase Award for Excellence in Industry Partnerships for its Global Tropical Futures Program.

QRC chief executive Ian Macfarlane said the QMEA works with the school to prepare students for a career in the resources sector and other related industries. 

“I congratulate Thuringowa SHS on this important recognition. By working with industry the school is expanding the educational opportunities for students living in North Queensland,” he said.

"The Showcase Awards is a great initiative of the Queensland Government which encourages excellence in a range of teaching and learning platforms. 

“Through QMEA the school only this week was working with Downer professionals to deliver a mining innovation class, which is part of the Global Tropics Futures Program."

Downer’s general manager for talent, Clare Hudson said, “Downer is delighted to support the QMEA and Thuringowa SHS, and help students understand the range of interesting and challenging careers available in the resources sector. 

“We expect to see some fantastic innovative solutions from the students through this project,” she said. 

The school now has the opportunity to compete in the next round of the awards to be in the running as a state finalist. 

QRC is the peak representative body for Queensland ‘s resource sector. The Queensland resources sector provides one in every $6 dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses across the state, all from 0.1 percent of Queensland’s land mass.

The QMEA is QRC’s education arm. It is a partnership between the QRC and the Queensland Government under its Gateway to Industry Schools program. 

www.qrc.org.au

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Public Accounts Committee commences new inquiries

THE Joint Committee of Public Accounts and Audit has commenced inquiries into several areas of public sector governance, performance and accountability as part of its examination of Auditor-General’s reports.

Committee chair Senator Dean Smith said the JCPAA scrutinises the governance, performance and accountability of Commonwealth agencies, to examine whether public money is used in an efficient, effective, economical and ethical manner.

“As Parliament’s joint public administration committee, the JCPAA has an important role in holding Commonwealth agencies to account,” Senator Smith said.

The Committee has commenced the following inquiries based on audit reports:

  • Commonwealth Financial Statements
  • Defence First Principles Review and Naval Construction
  • Australian Government Funding — Schools and Indigenous Health
  • Australian Government Security Arrangements — Personnel Security and Domestic Passenger Screening
  • Mental Health in the Australian Federal Police
  • Foreign Investment Obligations in Residential Real Estate

The Committee examines all reports of the Auditor-General tabled in the Parliament and can inquire into any items, matters or circumstances connected with these reports.

The Committee invites submissions to the inquiries, addressing the terms of reference. Public hearings will be held from August 2018. Further information about the inquiries can be accessed via the Committee’s website.

The Committee’s inquiries are based on the following Auditor-General reports:

Commonwealth Financial Statements

  • No. 24 (2017–18), Audits of the Financial Statements of Australian Government Entities for the Period Ended 30 June 2017

Defence First Principles Review and Naval Construction

Australian Government Funding—Schools and Indigenous Health

  • No. 18 (2017–18), Monitoring the Impact of Australian Government School Funding
  • No. 50 (2017-18), Primary Healthcare Grants under Indigenous Australians’ Health Program

Australian Government Security Arrangements—Personnel Security & Domestic Passenger Screening

Mental Health in the Australian Federal Police

Foreign Investment Obligations in Residential Real Estate

  • No. 48 (2017-18), Compliance with Foreign Investment Obligations for Residential Real Estate

 

Interested members of the public may wish to track the Committee via the website.

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'Labor has listened on SME tax cuts' - Master Builders

MASTER BUILDERS has applauded Labor’s decision to reverse its earlier decision to repeal tax cuts for small businesses that turnover between $10 million and $50 million.

Denita Wawn, CEO of Master Builders Australia said, "Labor deserves credit for this decision. It shows that they have listened to the concerns of thousands of SME builders. 

“Company tax cuts for small and medium business is heartland issue for Master Builders as SME builders make up 98 percent of our members and of our industry. We have been very direct in saying that scrapping tax cuts is the wrong call and Labor has listened,” Ms Wawn said. 

“However, we note that this decision applies to tax cuts that will already be implemented if Labor were to win the next Federal Election and not the future cuts that have already been legislated with the strong support of the Parliament including the Senate crossbench," Ms Wawn said.

"Master Builders will continue to constructively engage with Labor on further reductions in company tax for SMEs."

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The ARA looking towards the future for retail

THE Australian Retailers Association (ARA) islooking forward to seeing further growth for small businesses and increased employment within the industry as the second stage of the penalty rate reduction will take place this weekend.

Russell Zimmerman, executive director of the ARA, said last year’s decision to reduce Sunday penalty rates under the General Retail Industry Award 2010 (GRIA) from double-time (200%) to time-and-a-half (150%) was an incredible outcome for Australian retailers as it will provide long-term benefits for employers and employees in the industry.

“This progressive decision made by the Fair Work Commission will present numerous opportunities and bring further relief for retailers, their staff and consumers,” Mr Zimmerman said.

“We certainly await the 1st of July, as this next stage in the penalty rates transition will reduce Sunday penalties to 180 percent for permanent staff, and 185 percent for casual employees, alleviating some of the constant cost pressures retailers are facing today.”

Over the last three years, the ARA has been working with the Fair Work Commission (FWC) to adjust Sunday penalty rates as this small reduction delivers long-term employment outcomes for the retail industry and allows retailers to open their doors for longer.

“On average, the retail industry is increasing 2.76 percent year-on-year, therefore, our primary concern is for our members, especially small businesses struggling to open their stores seven days a week,” Mr Zimmerman said.

“With April’s retail figures representing a dismal 2.62 percent year-on-year sales growth – less than the average retail turnover for the last 12 months – these lower wage costs will help small retailers meet their overheads, and open their doors to consumers, stimulating the economy.”

With Labor’s recent moves to block the penalty rates reduction the ARA are concerned that some people have misunderstood the recent changes to penalty rates – or worse, are being misinformed.

“Sunday penalty rates have not been abolished, nor will they be. We have simply reduced the rate from 200 percent to 150 percent as these high penalty rates were deterring employers from giving their staff Sunday shifts, and forcing some retailers to close their doors,” Mr Zimmerman said.

“This next phase in the penalty rates reduction is a small step for the industry but a giant leap for retailers who are currently unable to open their stores on Sundays.”

As the Penalty Rates Decision was made by the FWC, an independent umpire established by the Labor Party, and then upheld by the Federal Court, the ARA trust all sides of politics, including Bill Shorten, will support this revolutionary decision for the industry.

“This now historic decision will be influential in improving overall customer satisfaction, sustaining industry growth and putting Australia’s economy back on track,” Mr Zimmerman said.

“If we don’t have trust in our Federal system and our national workplace relations tribunal - that Labor implemented - how are we ever going to move forward and grow as a country?”

 

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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