WITH more online shopfronts opening in Australia all the time, the House of Representatives Industry, Innovation, Science and Resources Committee will today begin collecting evidence for its inquiry into the impacts on local Australian businesses from global internet-based competition.

The Committee will hear from representatives from the Department of Industry, Innovation and Science at a public hearing in Canberra.

The Inquiry examines how Australian businesses, particularly in the retail and small business sectors, have responded to growing competition from global online companies and what effect this change has already had and will continue to have. The Committee is still accepting submissions addressing the terms of reference and will hold further hearings early in 2018.

Committee Chair Michelle Landry MP said that the Committee is looking forward to hearing from the Department of Industry, Innovation and Science to start the inquiry.

“As business increasingly moves online, especially in the retail field, it is important that Australia has the right policy settings so that local businesses can continue to compete,” Ms Landry said.

Ms Landry also noted that the inquiry follows on from the Committee’s recent inquiry into the social issues relating to automated vehicles.

“Technology is changing the way we do things, from buying groceries to driving to work. But these changes do not happen in a vacuum, which is why it’s important that the Committee consider some of the consequences and ensures that the parliament and the government can respond to them.”

Public hearing details: 10.45am – 11.30am, Wednesday 6 December, Committee Room 1R1, Parliament House, Canberra

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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THE Australian Retailers Association (ARA) said the October trade figures released today by the Australian Bureau of Statistics (ABS) represent a cold start for Christmas trade, with a 1.82 percent total year-on-year growth.

ARA Executive Director, Russell Zimmerman said, these figures were extremely disheartening this close to the biggest trading period of the year, and urges the Government to alleviate some of the significant cost pressures affecting small and large retailers today.

“With Christmas just around the corner, these trade figures illustrate just how hard it is for small businesses to compete with rising costs, coupled with the increase in global competition and the 24-hour market place,” Mr Zimmerman said.

“As household prices begin to ease off, these October figures have been mostly affected by the significant drop in Household Goods, with this retail category receiving a -1.95 percent in year-on-year growth.”

Other retail categories showing a considerable drop in year-on-year growth include Hardware & Building (-4.92%), Newspapers & Books (-4.08%) and Other Recreational Goods (-2.43%).

The ARA believe Amazon’s entrance into Australia today presents a fantastic opportunity for retailers to increase their sales through their online platform.

“With over 300 million users already on the Amazon Marketplace, retailers will be able to optimise their sales and reach consumers all around the world,” Mr Zimmerman said.

“Clothing Footwear & Personal Accessories (1.61%) had a moderate year-on-year increase due to spring racing, however this growth is still lagging compared to the start of the year.”

Department Stores (2.78%) have begun to recover their year-on-year growth since July, after re-focussing their product and service offerings to compete with the impending launch of Amazon, and other global giants entering the Australian retail market.

“Cafes Restaurants & Takeaway Food (3.09%) and Food Retailing (2.95%) have seen the biggest growth year-on-year of the retail categories due to the change in season and warmer weather,” Mr Zimmerman said.

South Australia (4.09%), Victoria (3.36%), Tasmania (2.68%) and New South Wales (2.43%) showed the strongest year-on-year growth of all the states. While both the Australian Capital Territory (1.31%) and the Northern Territory (0.11%) remained quite low. Unfortunately, we saw Queensland (-0.17%) and Western Australia (-0.98%) receive negative figures, a scary sign for Christmas.

“With the Labor Party threatening small business, retailers will continue to struggle to open their doors on weekends, employing more staff and meeting targets,” Mr Zimmerman said.

“Consumers enjoy shopping on the weekend, and retailers across the country look forward to the Penalty Rates Decision continuing to alleviate cost pressures, enabling local retailers to open their stores for longer, and meet consumer demand.”

To view the ARA and Roy Morgan’s Annual Pre-Christmas Sales Predictions for 2017 click here.

MONTHLY RETAIL GROWTH (September 2017– October 2017 seasonally adjusted) 

Cafes, restaurants and takeaway food services (1.68%), Clothing, footwear and personal accessory retailing (0.97%), Department stores (0.50%), Food retailing (0.32%), Other retailing (0.27%) and Household goods retailing (0.09%).

Northern Territory (1.68%), South Australia (1.20%), Victoria (0.99%), Australian Capital Territory (0.59%), Tasmania (0.54%), Western Australia (0.46%), New South Wales (0.26%) and Queensland (0.13%).

Total sales (0.53%).

YEAR-ON-YEAR RETAIL GROWTH (September 2016 – September 2017 seasonally adjusted)

Cafes, restaurants and takeaway food services (3.09%), Food retailing (2.95%), Department stores (2.78%), Other retailing (1.81%), Clothing, footwear and personal accessory retailing (1.61%) and Household goods retailing (-1.95%). 

South Australia (4.09%), Victoria (3.36%), Tasmania (2.68%), New South Wales (2.43%), Australian Capital Territory (1.31%), Northern Territory (0.11%), Queensland (-0.17%) and Western Australia (-0.98%).

Total sales (1.82%).

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For interview opportunities with ARA Executive Director Russell Zimmerman call the ARA Media Line on 0439 612 556 or 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 the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA 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.

THE Australian Taxation Office (ATO) will address the House Committee on Tax and Revenue tomorrow to round up the Committee’s inquiry into taxpayer engagement with Australia’s tax system.

The Tax and Revenue Committee was formed in May 2013 to provide scrutiny of the ATO in its dealings with small businesses involved in tax disputes.

The Committee now undertakes a broader sphere of review, responsive to the transformation of the ATO under its Reinvention Program into a modern digital tax service.

Chair of the Committee Kevin Hogan MP said that the current inquiry has grappled with issues larger than tax administration, such as the challenges associated with the cash economy, its connections with illicit activity, and the revenue implications for regulators and consumers as fintech innovation transforms business, banking and information services.

“Evidence taken during the inquiry suggests the ATO is tracking well against the new demands and, with the roll out of e-invoicing and Standard Business Reporting, is poised to deliver a simpler, more user friendly tax service to businesses.

“This public hearing provides the ATO with the opportunity to discuss new initiatives and sum up outstanding issues, including what the ATO is doing to meet government commitments to leave nobody behind under the digital by default agenda,” Mr Hogan said.

Public hearing details: 4.40pm to 5.40pm Wednesday 6 December 2017, Committee Room 2R1 Parliament House, Canberra.

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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THE Australian Retailers Association (ARA) is excited for Amazon’s official arrival in Australia today, as this innovative platform will be a great opportunity for local retailers looking to enlarge their customer base and increase their sales, especially in the lead up to Christmas.

Russell Zimmerman, Executive Director of the ARA said Amazon’s entrance today provides retailers both large and small an additional platform to increase their sales in such a challenging environment during the busiest time of year.

“With over 300 million active users already on Amazon’s Marketplace, the majority of Australian retailers view Amazon’s platform as a supplementary channel to their current retail offering,” Mr Zimmerman said.

“Amazon Marketplace will provide local retailers an additional revenue stream, and Amazon’s Fulfilment by Amazon (FBA) program will enable Australian retailers to eliminate bottlenecks in their supply chain.”

With the ARA and Roy Morgan Research predicting the ‘Other Retailing’ category, which includes online sales, to increase by 3.96 percent this Christmas, the ARA believe progressive retailers who are already on the Amazon platform are meeting consumer demands.

“Online sales currently account for more than 7 percent of total retail sales, and is growing at 5 percent annually” Mr Zimmerman said.

“With the advancement in digital technologies across the retail sector, we believe online retail sales will account for 13% of total retail sales in the next five years.”

The ARA is delighted Amazon will be a part of Australia’s Christmas trade this year, and believe progressive retailers will re-focus their efforts on their consumers, ensuring their business meets the expectations of the digital age.

“Retail has significantly transformed this year, and will continue to evolve every year; therefore, we encourage retailers across Australia to embrace change, and meet the demands of both consumers and the 24-hour market place,” Mr Zimmerman said.

“Amazon’s arrival means many things for Australian retail, it means growth, opportunity, and employment and the ARA look forward to seeing the retail industry thrive in 2018.”

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA 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 Australian Retailers Association (ARA) is 'completely dumbfounded with Labor’s insidious act' in disregarding one of the most progressive decisions for the retail industry, first ruled by the Full Bench of the Fair Work Commission (FWC) and upheld by five judges of the Federal Court in the Senate yesterday.

Both the ALP and the Greens have tampered with the Fair Work Amendment (Repeal of 4 Yearly Reviews and Other Measures) Bill 2017, hastily adding two amendments which will severely stifle employment growth and smother small businesses across the country, according to ARA executive director Russell Zimmerman.

Mr Zimmerman said Labor’s "underhanded actions" have made a mockery of a fair-minded organisation, the Australian Justice system and taxpayers money.

“Labor have undermined the integrity of the Fair Work Commission, an independent umpire, established by the Labor Government in 2009, to ensure employers across all industries in Australia are treated fairly,” Mr Zimmerman said.

“The ALP have also disregarded Australia’s court system, as the Federal Court agreed with the Commission’s decision to reduce Sunday penalty rates to be in-line with Saturday penalty rates, as this reduction would allow retailers to open their stores for longer, and enable retailers the opportunity to employ more staff on weekends.”

With the Labor Party overlooking the judiciary, and disobeying their own self-governing establishment, Mr Zimmerman said the ARA was confused as to "why Labor formed the Fair Work Commission at all, as it has been costing Australians millions of dollars every year".

“Like the Australian Justice system, the Fair Work Commission was established to serve the best interest of the Australian public, and Labor’s rushed amendments to the Fair Work Amendment Bill 2017 is not only hypocritical, it will have detrimental effects to small and large businesses across Australia,” Mr Zimmerman said.

“The ARA thank the Government on behalf of employees and employers in the retail industry, for supporting small businesses and requesting this amended Bill be heavily examined.”

The ARA believes a moderate reduction, not removal of penalty rates, will increase youth employment within the retail industry, and enable retailers to remain competitive in the 24/7 global marketplace.

“With many retailers across the board unable to open their doors on Sundays, the reduction of penalty rates will enable retailers to look at employing more staff on a Sundays as it is their busiest trading day of the week,” Mr Zimmerman said.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA 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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IN HIS BOOK, Destructive Cities, Brian Haratsis, Executive Chairman of MacroPlan Dimasi, presents the concept of destruction/regeneration of cities, with cities renewing themselves continuously.

According to Mr Haratsis, “Destructive/regenerative cities require value creation and capture through institutional reform of infrastructure delivery, evolutionary zoning and taxation regimes that provide incentives for maximum development, mixed-use development and place making, which maximises social innovation and economic outcomes.”

He notes that “these outcomes are actively prevented in Australia due to the primary philosophies driving urban planning outcomes – protect the short-term value of property, maintain bureaucratic and political control over infrastructure provision and property development, and stick to an uncontroversial garden city planning model”.

Mr Haratsis argues that “Destructive/regenerative city planning would create a new social contract and development outcomes on a long-term basis”.

The House Standing Committee on Infrastructure, Transport and Cities will consider these possibilities and more at a public hearing for its inquiry into the Australian Government’s role in the Development of cities.

Committee Chair, Andrew Wallace MP, said the impact of globalisation is changing the dynamic of urban and regional development in Australia. New economies, new technologies and rapid demographic change demanded new concepts of how cities and regions work and relate to each other.

“A new approach to urban and regional development is required, with an emphasis on collaboration between governments, communities and business to create prosperous, sustainable and liveable urban environments," Mr Wallace said.

Further information on the inquiry, including the full terms of reference, is available on the Committee website.

Public hearing details: 5pm – 6.30pm, Tuesday, 5 December 2017, Committee Room 1R3, Parliament House, Canberra

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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DOMESTIC gas supply is set for a boost with Arrow Energy’s announcement of their sales agreement with Shell’s QCLNG for Queensland gas.

Queensland Resources Council (QRC) Chief Executive Ian Macfarlane said Arrow will unlock significant gas reserves in the Surat Basin which will increase supply into the domestic market.

“Today’s announcement brings the scale and infrastructure of LNG production to bear on Arrow’s proven gas reserves. That’s the only way to get this gas out of the ground at an affordable price”, said Mr Macfarlane

“More gas being produced is good news for all gas customers both domestic and export.

“The QRC congratulates Arrow and Shell’s QCLNG on this milestone agreement which again demonstrates that Queensland is leading the way when it comes to working to address the problem of the gas shortage."

The 27 year-year agreement will see Arrow use existing gas pipelines and related infrastructure. The project will create around 1000 new jobs and will benefit every Queenslander through royalties.

“These two companies are here for the long-haul and this agreement will deliver a whole generation of prosperity to the Darling Downs. Long term jobs allow training and supply opportunities to deliver enduring benefits to local communities such as Wandoan, Miles, Chinchilla and Dalby,” Mr Macfarlane said.

“We only hope that the other states follow Queensland’s lead and open up gas reserves to help fix the energy crisis households and businesses, especially manufacturers, along the eastern seaboard are facing.
 

“This one agreement alone will deliver enough extra gas to more than power Queensland’s entire industrial demand every year out to 2047."

QRC’s current data shows that in 2016-17, the state’s gas industry contributed $8.9 billion to the state’s economy and supported 42,938 full-time Queensland jobs.

www.qrc.org.au

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THE Australian Retailers Association (ARA) urge the Senate to oppose Labor’s amendments to the Fair Work Amendment (Repeal of 4 Yearly Reviews and Other Measures) Bill 2017 as this Bill has been developed to improve the flexibility and efficiency of Enterprise Bargaining Agreements (EBA)s.

As retail is the largest single private employer in Australia, employing more than 10 percent of the working population across the country, Russell Zimmerman, Executive Director of the ARA, said it is crucial that the Labor party understands the risk small businesses are under if the proposed amendments are made to this Bill.

“The retail sector continues to face significant cost pressures, and for small businesses to survive this challenging trading environment, retailers need to open for longer hours over the weekend, to meet the demand of today’s consumers,” Mr Zimmerman said.

“The ARA are conscious that many small businesses across Australia are unable to rely on trade during the week as many consumers are at work during retail trading hours.”

The ARA have listened to their members and have identified that many small businesses are unable to afford opening their doors during the weekend.

“If retailers are limited to only opening their doors during the week, many consumers will shift their spending online, leaving our local retailers in the dark,” Mr Zimmerman said.

“For small retailers to compete in such a competitive market, retailers need to be given the opportunity to grow and prosper.”

The Penalty Rates Decision has been ruled by the Full Bench of the Fair Work Commission (FWC) and upheld by five judges of the Federal Court as these independent bodies have identified that the reduction in penalty rates would lessen the strain on Australian retailers, put the unemployed back into the workforce, and increase trading hours across the country.

“Any plan to overturn such a progressive decision in Australian history, will undermine the integrity of the independent umpire, and cause serious negative impacts to the prosperity of small and large businesses across the country,” Mr Zimmerman said.

“It is time for all Senators to put the community first, oppose Labor’s proposed amendments, and ensure the longevity of retail.”

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA 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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