AS AUSTRALIA’s leading peak body for the retail industry, the Australian Retailers Association (ARA) is calling for a competitive corporate tax rate to sustain growth and drive prosperity for the country’s $310 billion sector.

Russell Zimmerman, Executive Director of the ARA, said the ARA works hard to advocate and support employers and employees working in the sector as the Australian retail industry employs 10% of the working population.

“The current trading environment has seen many retailers doing it tough, with last year’s retail trade figures averaging a 2.76 percent year-on-year growth, and retail trade growth down more than 1 percent on the 50 year average in 2017, the Government needs to intervene and offer some relief to the struggling industry,” Mr Zimmerman said.

“At 30 percent, Australia has one of the highest corporate tax rates in the advanced economic world, making it difficult for retailers to invest in jobs growth and increased wages that would benefit the economy.”

The ARA insists the present corporate tax rate currently discourages international and Australian businesses from investing in Australia and calls on all sides of politics to drive investment and accept the economic benefits tax cuts will create.

“The current corporate tax rate discourages international and Australian businesses from investing in Australia and providing further job opportunities, as many Australian and offshore businesses choose to invest in, and headquarters overseas,” Mr Zimmerman said.

“The Senate needs to cooperate with the Government’s plan to lower the corporate tax rate below 25% so local retailers are able to invest in their businesses and grow the Australian economy.”

Retailers have told the ARA that balancing rising cost pressures with low sales growth and a high-tax environment, it is becoming increasingly difficult with some retailers even struggling to pay their rent.

“As retailers are already struggling in a volatile trading environment, the ARA will continue to advocate for a reduced company tax rate before it stifles future employment and growth,” Mr Zimmerman said.

“The Australian retail industry currently employs more than 1.2 million people. If the corporate tax rate is not reduced to be more in line with our international counterparts, employees and the underemployed will be the ones who suffer, as employees are the heart and soul of retail.”

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 body industry, 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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THE Joint Standing Committee on Electoral Matters has extended the submission deadline for its inquiries into matters relating to Section 44 of the Constitution and on the Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Bill 2017.

The submission deadline for both inquiries is now March 9, 2018.

Information on the inquiries is available at https://www.aph.gov.au/em.

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THE Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has welcomed the passing of legislation to establish the Australian Financial Complaints Authority (AFCA) last week..

THE Treaties Committee tabled two reports last week dealing with a range of issues.

The first report reviews three treaties including an agreement with Singapore that will make sure the Singapore Air Force’s Flying Training Institute can continue to operate out of the RAAF Base at Pearce in Western Australia.

Also dealing with defence matters, a new agreement between the Solomon Islands and Australia will replace the RAMSI treaty. The Australian Defence Force and Australian Federal Police will be able to respond rapidly and effectively to any requests from the Solomon Islands for help in the event of a major security or humanitarian emergency.

Committee Chair, Stuart Robert MP, said that Australia’s leadership of the RAMSI operation had provided invaluable assistance to the Solomon Islands for fourteen years.

“RAMSI concluded in 2017. It was very successful but the Solomon Islands still face development challenges. This agreement will allow Australia to provide ongoing support to help the country to build long-term stability,” Mr Robert said.

Under a series of treaties, Australia has provided vital support to America’s space program since the 1960s and a new agreement consolidates the existing arrangements. Ongoing collaboration between the CSIRO and NASA will be able to continue for another 25 years.

A second report deals exclusively with Australia’s relationship with Jordan, strengthening both countries’ ability to combat transnational crime and terrorism. An extradition treaty provides for the exchange of suspected criminals between the two countries while mutual legal assistance will improve the sharing of evidence for criminal investigations. 

“These two agreements will improve Australia’s capacity to prevent criminals and terrorists from evading capture by living or hiding evidence in another country,” Mr Robert said.

The two reports are available from the Committee’s website:

• Report 176: Air Force Training—Singapore; Deployment of Personnel—Solomon Islands; Space Tracking—USA
• Report 177: Extradition—Jordan; Mutual Legal Assistance—Jordan

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THE Office of the Australian Information Commissioner (OAIC) has released new resources for the Australian public ahead of the commencement of the Notifiable Data Breaches (NDB) scheme on February 22, 2018.

DATA and analytics are transforming the global economy and the public and private sectors in Australia need to have a greater focus on the workforce, security and ethical implications, according to CEDA’s 2018 Economic and Political Overview (EPO) publication being released today.

This year’s economic and political outlook highlights that the Australian economy is looking up, and focuses on the opportunities and challenges presented by the rapid changes in information availability, from how we source news to how we manage and utilise data. 

CEDA Chief Executive, Melinda Cilento said the explosion of data will continue to disrupt industries and transform economies and communities, and Australia needs to be on the front foot in managing that change and the opportunities flowing from it. 

“As highlighted in our report, McKinsey & Company estimates that the benefits of rapid advances in data and analytics could add $220 billion to the Australian economy,” Ms Cilento said.

“This will come from business being able to operate more efficiently with real time monitoring and control to improved forecasting and should provide flow on benefits for consumers from improved convenience, quality and lower prices. 

Many of the biggest companies to emerge in the last 20 years have business models underpinned by data and analytics and a significant amount of economic power is shifting to these companies.”

However, Ms Cilento said the changes occurring could significantly disrupt existing businesses and raised broader issues for government and business to consider, from how data is managed, the use of personal data, and ethical issues around artificial intelligence.

“Data growth and the use of analytics has the potential to deliver significant benefits to the economy, business and individuals, but as a nation we need to be discussing now the implications of these trends, if we are to capture the most significant opportunities,” she said.

Ms Cilento said the EPO report also examines whether four-year Federal Parliamentary terms deliver better policy outcomes. 

“Australia is an outlier compared to many nations with a relatively short three-year term, but the report suggests that when compared to similar nations, such as Canada, longer terms may not result in better policy outcomes or greater satisfaction with democracy,” she said.

Ms Cilento said the report also examines the changes in news sources and the issues arising from the digital news age where it is easier for inaccurate news to spread.

On the economic front, Ms Cilento said the outlook was positive, although global flashpoints exist such as negotiations around Brexit, still high debt levels, and an Italian election that could trigger debate about another EU exit.

On the political front, Ms Cilento said that given the volatility of recent years, it was unlikely there would be any new major policies this year.

The CEDA 2018 EPO contributing authors are: 

• Economic overview – Michael Blythe, Chief Economist and Managing Director, Economics, Commonwealth Bank of Australia.
• Political overview – Dr Narelle Miragliotta, Senior Lecturer in Politics, Monash University.
• Enter the age of analytics disruption – Dr Tim Fountaine, Partner, and Dr Michaela Freeland, Associate Partner, McKinsey & Company.
• Information accuracy in the digital news age – Dr David Glance, Director of the UWA Centre for Software Practice, University of Western Australia.
• Four-year Parliamentary terms? – Dr Andrew Banfield, Head of School, School of Politics and International Relations, ANU and Harrison Miller, Doctoral Candidate, School of Politics and International Relations, ANU.

The EPO is being launched in Brisbane and Canberra today. Speakers in Brisbane include: Commonwealth Bank of Australia, Chief Economist and Managing Director, Economics, Michael Blythe; Federal Shadow Minister for Finance, Dr Jim Chalmers; Lateral Economics Founder and CEO, Dr Nicholas Gruen; and McKinsey & Company, Partner, Dr Tim Fountaine. 

Speakers in Canberra include: Melbourne Institute of Applied Economic and Social Research Professorial Fellow, Dr Gary Banks AO; Council of the Ageing and Vault Systems Chair; and Non-Executive Director ANZ Banking Group and Clayton Utz, Jane Halton AO PSM; ANU Crawford School of Public Policy Honorary Professorial Fellow, Professor John Hewson AM; and Westpac, Director and Senior Economist, Elliot Clarke.

A free live stream of the Brisbane event, starting at 10.10am (AEST), can be accessed at www.ceda.com.au. The launch event will be followed by a series of events being held in Hobart, Adelaide, Melbourne, Townsville, Perth, Darwin and Sydney in February and March.

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THE Australian Taxation Office will be in Toowoomba on Tuesday February 20 talking to local small businesses as part of an effort to ensure that they have the support and information to get their tax and super right.

Businesses are invited to attend a one-hour information session at either 10-11am or 6-7pm and a record keeping information session 11.15am-12.15pm being held at Toowoomba City Library, 155 Herries Street, Toowoomba.

This visit is part of a broader program by the ATO to ensure fairness for honest businesses and to level the playing field by tackling the ‘cash and hidden economy’.

THE Australian Retailers Association (ARA) said December 2017 trade figures released today by the Australian Bureau of Statistics (ABS) represent a conservative Christmas instead of the merry Christmas retailers had in mind, with a 2.49 percent total growth year-on-year.

Russell Zimmerman, Executive Director of the ARA, said although the ARA and Roy Morgan predicted a 2.8% increase in pre-Christmas sales, from November 15 to December 24, 2017, these figures are not too far off the mark.