THE Australian Retailers Association (ARA) said the June trade figures released by the Australian Bureau of Statistics (ABS) remain steady with 3.80% total growth year-on-year.

ARA Executive Director Russell Zimmerman said the June retail trade figures remain positive due to the continual growth in Food retailing.

“Although we see a robust 3.8% year-on-year growth the main driving force of this increase stems from Supermarkets and grocery stores with a sturdy 4% growth year-on-year,” Mr Zimmerman said.

“As Food Retailing represents 40% of overall retail trade, this continual surge in Food Retailing reflects somewhat positively on the overall industry.”

The Household Goods category saw the strongest year-on-year increase with an overall 5.88% increase, this included a substantial growth in Furniture sales which received a 10.54% year-on-year increase.

“We usually see home owners increase their spending on household goods when housing values rise, and this month’s retail trade figures reflect the high consumer confidence home owners felt in June,” Mr Zimmerman said.

“Hardware figures also proved positive with a 3.73% year-on-year increase, their strongest retail trade figures since December since the closure of Masters around the country.”

Clothing Footwear and Personal Accessories figures dropped significantly in June with a 1.71% year-on-year increase, compared to the 3.76% year-on-year increase the category received in May.

“This substantial drop shows a very volatile retail market as the last few months sales have been driven by the weather and significant discounting,” Mr Zimmerman said.

June trade figures remained steady across the board with all states showing a stable growth. Australian Capital Territory (5.33%) and Tasmania (5.12%) lead the pack with robust year-on-year growth. While South Australia (4.69%), New South Wales (4.65%), Victoria (4.49%) and Northern Territory (3.52%) also showed a moderate year-on-year increase. Both Queensland (2.67%) and Western Australia (0.86%) trailed behind the other states but still presented fairly stable figures.

“This steady growth across the industry isn’t uncommon with the rise of global giants entering the Australian market,” Mr Zimmerman said.

“With Amazon recently purchasing land in Victoria we know the retail market is changing and those retailers who redefine their businesses to adapt to the shifting environment will thrive in the dynamic retail landscape.”

MONTHLY RETAIL GROWTH (May 2017– June 2017 seasonally adjusted) 

Household goods retailing (0.90%), Other retailing (0.19%), Food retailing (-0.03%), Clothing, footwear and personal accessory retailing (0.77%), Cafes, restaurants and takeaway food services (0.52%) and Department stores (-0.31%).

Northern Territory (1.22%), New South Wales (0.54%), Tasmania (0.63%), Western Australia (0.10%), South Australia (0.26%), Australian Capital Territory (-0.14%), Queensland (0.69%), and Victoria (-0.29%).

Total sales (0.28%).

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

Household goods retailing (5.88%), Cafes, restaurants and takeaway food services (5.58%), Food retailing (3.78%), Clothing, footwear and personal accessory retailing (1.72%), Other retailing (2.92%) and Department stores (-1.08%). Total sales (3.8%). 

Australian Capital Territory (5.33%), Tasmania (5.12%), South Australia (4.69%), New South Wales (4.65%), Victoria (4.49%), Northern Territory (3.52%), Queensland (2.67%) and Western Australia (0.86%).

Total sales (3.80%).

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 7,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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“ANY ‘Buy Queensland’ policies must be consistent with Australia’s international trade commitments,” said Lisa McAuley, CEO of the Export Council of Australia (ECA). “Otherwise they will undermine Australia’s international credibility and risk retaliation.”

The Australian Government works closely with state governments when negotiating Free Trade Agreements (FTA) and other trade commitments.

“States have plenty of opportunities during negotiations to object to any commitments. As part of the process, state governments opt in before an FTA enters into force. The Queensland Government has opted in to all of them” said Ms McAuley. “Backing out once they’re in force undermines the whole agreement. The way international trade works is that you have to deliver what you say you will. Otherwise, who’s going to trust you in future negotiations?”

Open trade benefits all parties, lowering costs for consumers (or, in the case of government procurement, taxpayers) and enables domestic businesses to expand their markets and create jobs. By contrast, protectionist measures increase costs to consumers and can lead to retaliation by trading partners.

“What’s to stop other Australian states shutting out Queensland firms from their procurement contracts?” Ms McAuley asked. “But it’s not just domestic government procurement that might be affected.”

International trade statistics provide detailed breakdowns of which goods come from which ports.

“A trading partner could pretty easily work out which of their Australian imports mostly come from Queensland, and put in place retaliatory measures that focus on Queensland exporters. Does anyone think the current administration in the United States would hesitate to retaliate if it saw an opportunity and a political advantage?” said Ms McAuley.

“If the Queensland Government does anything to back out of its trade commitments, it is putting its exporters at risk.”

www.export.org.au

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THE Australian Retailers Association (ARA) has put forward a submission to the Senate Education and Employment Committee on the Senate Penalty Rates Inquiry regarding Enterprise Bargaining Agreements (EBA).

This inquiry focuses on the operation, application and effectiveness of the Better-Off Overall Test (BOOT) for EBAs and their relationship with penalty rates across the retail and hospitality industries.

ARA Executive Director Russell Zimmerman said the current state of EBA’s actually provide more flexibility for employers and employees working within the retail sector.

“The ARA’s submission opposes and clarifies the perceived inadequacies surrounding EBA’s as the current EBA model provides a higher base rate for retail employees,” Mr Zimmerman said.

As retailers continue to face a difficult trading environment the ARA believe the Fair Work Commission need to re-evaluate the unnecessary complications and demanding requirements for the BOOT.

The unrealistic definitions to the BOOT exacerbates the constant challenges retailers face in the ever-changing retail environment, brought on by international competition and significant cost pressures in the sector,” Mr Zimmerman said.

With retailers across the country already facing tough trading conditions and an appeal to the Fair Work Commission’s penalty rates decision, the ARA strongly supports a fairer and more flexible EBA system and improve the BOOT.

To view the ARA’s full submission to the Senate Standing Committees on Education and Employment, click here.

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 7,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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THERE IS mounting evidence that small businesses are bearing an unfair higher share of rising electricity prices.

THE Australian Retailers Association (ARA) has announced Radek Sali of Swisse as keynote speaker at the 2017 eftpos ARA Australian Retail Awards next week.

The eftpos ARA Australian Retail Awards are the retail industry’s longest running recognition of success, and this year will take place at the Great Hall, National Gallery of Victoria in front of 550 retailers on August 3 in Melbourne.

Radek Sali is an accomplished leader of international business, having made his mark as CEO of household name Swisse in his early thirties. Radek is credited to have led Swisse through rapid growth in product lines, stockists and revenue, and initiated one of Australia’s largest ever licencing deals with PGT, with plans to launch Swisse in over 30 countries in three years across Europe and Asia.

Russell Zimmerman, ARA Executive Director, said the Awards Breakfast is an opportunity for all Australian retailers to come together to celebrate the success of their peers, network, and learn from other’s experience.

The 2017 eftpos ARA Australian Retail Awards will also be hosted by esteemed ABC journalist Beverley O’Connor.

“To have Radek on board to share the journey and learnings behind his success is a real advantage, and Beverley will only add to the atmosphere of celebration and industry support we expect the 2017 Awards to provide to retailers,” Mr Zimmerman said.

With the Top 20 retailers already shortlisted for the coveted 2017 Retailer of the Year Award, tickets to attend the 2017 Awards Breakfast have already sold out, so keep your eyes peeled for the winners to be announced post event.

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 2017 eftpos ARA Australian Retail Awards breakfast will commence on Thursday 3 August at Melbourne’s National Gallery of Victoria.

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 Institute of Public Accountants (IPA) has called for greater accountability from the ATO in light of the ongoing technology issues that have significantly impacted accountants and small businesses across Australia.

“The IPA has constantly heard the plea of our members who have suffered ongoing IT issues with the ATO,” said IPA chief executive officer, Andrew Conway.

“We know that the ATO is doing whatever it can to rectify the failing functionality of its IT systems but apologies do not undo the pain that it is inflicting.

“While some of our members have called for compensation, we are realistic in our expectations.  However, it should be recognised that accountants and tax agents have worn the brunt of this issue over many years.

“Whilst clients of tax practitioners are generally not disadvantaged, very little concessions are granted to the tax practitioners themselves.

“To give context to the significance of this issue, 74 percent of taxpayers go to a tax agent to look after their affairs and 95 percent for businesses.  Consequently, our members do the heavy lifting and are reliant on the ATO systems to service their clients.

“While the ATO is pursuing a digital by default strategy, stakeholders need systems available 24/7.

“As a result of the ongoing system issues, our members have experienced reputational damage with their clients along with loss of productivity.  These factors play a big part in the status of their mental health and wellbeing.

“When critical systems go down, client appointments get cancelled, support staff lay idle and backlogs start piling up.  When there is a major outage, everything grinds to a halt.

“We believe there should be a service commitment from the ATO; an agreement where there are specified and agreed service levels and if those service levels are not met, penalties should apply. This would be akin to arrangements that operate in the commercial world with critical service providers.

“Our members are subjected to key performance benchmarks when it comes to lodgements so it is not unreasonable to ask that the ATO has its own benchmark to improve accountability around IT service delivery,” said Mr Conway.

publicaccountants.org.au

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CHARTERED Accountants Australia and New Zealand has called on the Australian Labor Party to embrace indirect tax reform if it is to develop the sustainable tax base necessary to pay for the many important social investments outlined by Opposition Leader Bill Shorten in his speech today (July 30).

Head of Tax, Michael Croker, said Chartered Accountants ANZ would continue to advocate for a broad base, low rate personal tax system, with greater reliance on indirect taxes such as GST and stronger measures to address tax evaded in the black economy.

Mr Croker noted Mr Shorten’s references to inequality but expressed disappointment over the lack of a comprehensive plan to tackle this issue by more broadly reforming Australia’s tax and transfer payment systems.

“What we’re seeing from the major parties is a piecemeal approach, with a bit of extra income tax tacked on here and a specific deduction denied there,” Mr Croker said.

“The message conveyed is that something is being done to someone else to tax them more heavily.

“Meanwhile, Australia’s income tax system remains dangerously over-reliant on PAYG collected from Australians in the top tax brackets and company tax paid by a comparatively small group of large companies.”

Nonetheless, Chartered Accountants ANZ had already spoken to Andrew Leigh’s office and offered to work with the ALP to flesh-out its 30 percent minimum tax proposal for discretionary trusts before the next Federal Election.

“Today’s speech and accompanying Fact Sheet are light on specifics for a legitimate structure used widely for business, personal investment and family purposes,” Mr Croker said.

“Accountants and their clients seek certainty, particularly when new policies impact existing structures established in accordance with laws now described by those who enacted them as unfair.

“There are already a number of emerging questions about Labor’s model”, he said.

They include:

•   The equity of treating active small businesses differently from farmers.

•   Addressing the potential for over-taxation (compared to the tax outcome if the beneficiary simply derived the income directly), particularly for business trusts.

•   Restructuring relief for those who may wish to exit discretionary trust structures.

•   The scope of carve-outs for farm trusts, testamentary, disability and charitable trusts.

Mr Croker said Labor’s minimum tax would start many conversations, and said there could be concern in some quarters that minimum tax might be embraced for other taxpayer segments.

He said Chartered Accountants in Australia would be disappointed by the disparaging references to their profession in Mr Shorten’s speech today.

“With his parliamentary and ministerial experience, Mr Shorten knows better than most the role CAs play in helping Australians and businesses prosper. He would also know that Chartered Accountants ANZ is a highly trusted contributor to consultation forums established by government and regulatory agencies such as the ATO, advocating in the public interest.” 

www.charteredaccountantsanz.com

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LEADER of the Opposition, Bill Shorten MP, has been confirmed to speak at the Vodafone National Small Business Summit, hosted by the Council of Small Business Australia (COSBOA) taking place at the Events Centre Collins Square, Melbourne on 23-25 August 2017.

Mr Shorten will open the Summit Breakfast on Friday, 25 August and discuss current issues facing more than two million small businesses across Australia.

Peter Strong, CEO of COSBOA commented on the privilege to host Mr Shorten at Australia’s premier policy event discussing the current and future needs of small business owners.

“We are honoured to welcome Mr Shorten to speak at the Vodafone National Small Business Summit for the third year. 

“In 2017 the Summit will focus on ‘Collaboration and Communities’ and discuss how senior politicians, policy makers and industry leaders can come together to build and strengthen partnerships and secure the future of small business growth in Australia,” said Mr Strong.

Program highlights include:

Small Business Banking and Finance, with:

• Hon. Philip Dalidakis, Minister for Small Business, Innovation and Trade
• Kate Carnell, Australian Small Business and Family Enterprise Ombudsman
• Anna Bligh, CEO, Australian Bankers' Association
• David Gandolfo, Deputy Chair, COSBOA

Big and Small Working Together, with:

• Jennifer Westacott, Chief Executive, Business Council of Australia
• Grant King, President, Business Council of Australia
• Paul Nielsen, Director and Chairperson, COSBOA

Our Regulators – Can Their Jobs be Easier and Will That Make Our Jobs Easier?  with: 

• John Price, Commissioner, Australian Securities and Investments Commission
• Natalie James, Fair Work Ombudsman
• Dr Michael Shaper, Deputy Chair, Australian Competition and Consumer Commission

Export Opportunities And Other Business Via The Web, with:

• Richard Flanagan, Head of Business Marketing, Google Australia and New Zealand

The Role of Business Associations in Modern Society, with:

• Justice Iain Ross, President, Fair Work Commission
• Sandy Chong, CEO, Australian Hairdressing Council and Director, COSBOA
• John Hart, Executive Director, Restaurant & Catering Australia
• Julie Owens MP, Shadow Assistant Minister for Small Business

Registrations are open for the Vodafone National Small Business Summit. For more information please visit: www.cosboansbs.com.au

To celebrate the commencement of the Summit, Small Business owners are invited to attend the Small Business Start-Up Reception from 6pm-8pm on Wednesday, 23 August 2017. The event will provide an opportunity for owners to hear from Peter Strong, CEO of COSBOA and network with industry leaders and key decision makers. A panel on the evening will highlight the next generation of employers and innovators and discuss what more our education system can do to support entrepreneurship.