WITH THE SCHOOL holidays drawing to a close in a few weeks, retailers across Australia are packing the shelves with back to school products.

The Australian Retailers Association (ARA) expects school shoes, uniforms, backpacks, lunchboxes and stationery purchases to peak in the coming weeks, as parents prepare their kids for the new school year.

The ARA expects many stores and shopping centres to shift their focus from the festive season to back to school supplies this month, as it is their biggest trading period of the year for these product categories.

ARA Executive Director, Russell Zimmerman says retailers providing apparel, footwear, stationary and technology will see a big boost in sales this month with the first day back at school rapidly approaching.

“The start of the new year is a milestone for each student around the country, and the purchases associated with back to school products are crucial to many small and large retailers,” he said.

“With the increased use of technology in our education system and more schools implementing 'Bring Your Own Devices', electronic retailers will likely see a surge in sales for laptops, tablets and other electronic learning accessories.”

Mr Zimmerman says although the cost of stocking up kids for the classroom can add up, savvy parents who are organised and seek out the best deals can minimise the pinch when it comes to purchasing these necessary items.

“Every year we see an increase in back to school supplies online,” Mr Zimmerman said, “And with many parents now back at full time or part time work, online platforms provide parents with the convenience and flexibility they need to prepare their children for the new school year.”

As the school year starts in late January, the ARA encourages those parents still in holiday mode to relax and enjoy the shopping experience, especially with post-Christmas discounts continuing right throughout the month.

“The next big discounting period after January will be mid-year sales in June, so I would encourage shoppers to spend their time in physical stores, enjoying the full customer experience and significant savings across the board,” said Mr Zimmerman.

The ARA and Roy Morgan Research predicts that shoppers will spend $17.2 billion nationwide, in the post-Christmas sales during the period from December 26, 2016 to January 15, 2017.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $300 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 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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NATIONAL airspace protection is the focus of a new consultation paper, with stakeholder feedback being sought on a range of proposals to modernise airspace regulatory arrangements.

Minister for Infrastructure and Transport Darren Chester said the paper aims to generate engagement with government, industry and community stakeholders on better approaches to this complex issue.

“The paper proposes a modern, consultative and risk-based approach to airspace protection around airports and critical aviation communications, navigation and surveillance facilities,” Mr Chester said.

“It also considers options to better protect low-flying aircraft from hazards operating away from airports.

“I am looking forward to feedback from interested parties as we work toward modernising airspace protection in Australia,” Mr Chester said.

Submissions on the paper will be accepted until 28 February 2017.

To view the Paper and for details on how to make a submission, visit: https://infrastructure.gov.au/aviation/airspace_protection/index.aspx 

• Public Consultation Paper released outlining plans to modernise airspace protection
• Paper covers a range of proposals to protect critical aviation infrastructure while enabling better airport and off-airport planning
• Submissions open until 28 February 2017

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IT IS TIME to up the ante on the turnover threshold associated with the small business entity definition, according to the Institute of Public Accountants (IPA).

“The $2 million dollar turnover threshold for small business that came into play in July 2007 has not been indexed since its introduction,” said IPA chief executive officer, Andrew Conway.

“The Board of Taxation’s 2014 Review of the Tax Impediments Facing Small Business recommended an increase to the threshold, noting that it would reduce the number of businesses who are at or near the current threshold and so face uncertainty as to their tax treatment.

“Increasing the threshold would also assist businesses with a higher aggregated turnover with low margins to access the concessions. 

“It is estimated that increasing the threshold to $10 million would allow an additional 90,000 to 100,000 businesses access to the full suite of small business tax concessions, decreasing their compliance costs and increasing cash flow.

“This would enhance the capacity to reinvest in small businesses, providing the opportunity for these businesses to grow with increased employment and wages.  It would also incentivise small businesses at or near the $2 million threshold to grow, as currently they would lose these concessions once they pass the threshold.

“According to ABS data, around 61 per cent of actively trading small businesses are non-employing. However, increasing the turnover to include small businesses in the growth phase is likely to contribute to employment growth as these businesses are already employing and in a position to increase their productive capacity. 

“The revenue foregone is likely to be substantially covered by the economic benefits from increased employment, higher wages and lower compliance costs.

“Increasing the threshold would allow more entities access to simpler depreciation rules, lower corporate tax rate and the newly enacted small business rollover restructure relief.

“The IPA recommends that small businesses with aggregated turnover of less than $10 million be given access to the small business tax concessions,” said Mr Conway.

 publicaccountants.org.au

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BOXING DAY proved to be another great day for retailers this year with Australians flooding shopping centres and department stores across the country. Boxing Day sales are set to reach $2.3 billion as predicted by the Australian Retailers Association (ARA), with consumers lining up outside stores to take advantage of some of the best retail deals of the year.

Russell Zimmerman, ARA Executive Director, said retailers were happy with the out pour of consumers across the country, and were thankful to shoppers who waited patiently in ques due to the uplift in foot traffic across the nation.

“Every year Boxing Day crowds seem to expand, and this year’s crowd certainly did not disappoint,” Mr Zimmerman said.

“We predicted retailers would trade over $2.3 billion this Boxing Day, and judging by the increase of people in stores, I think we may have hit the mark.”

This Boxing Day, Myer launched their biggest Stocktake Sale, and expected to have 1.6 million customers flood through their doors. While department stores traded well, shopping centers like Melbourne Central expected to see over 230,000 people pass through the centre yesterday to take advantage of end-of-year sales.

Online retailers have also seen an increase in consumer activity during this last 24 hours due to Australians feeling more confident in purchasing products on mobile devices.

‘Boxing Day is only the start of the sale period, and we anticipate this shopping spree to continue for the next two or three weeks,” Mr Zimmerman said.

The ARA and Roy Morgan Research expect shoppers to spend $17.2 billion from December 26 to January 15 2017. The category tipped to enjoy the biggest increase in year on year sales in the next three weeks will be ‘hospitality’ at 6.8% growth, which is reflective of people enjoying their holidays and spending money at cafes and bars.

Following hospitality, other categories expected to show a big increase over the next three weeks in year on year sales will be the ‘other’ category at 3.2% growth, and ‘apparel’ at a 3% increase.

On a state basis, NSW will be the big winner, with year on year growth of 3.6% growth for the period encompassing 26 December 2016 to 15 January 2017.

ARA ROY MORGAN POST-CHRISTMAS 2016/17 SALES PREDICTIONS

December 26, 2016 – January 15, 2017

Boxing Day 2016 sales

(Australian Retailers Association)

2016/17 Post-Christmas Sales Growth by Category

(ARA/ROY MORGAN)

2016/17 Post-Christmas Sales Growth by State

(ARA/ROY MORGAN)

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $300 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 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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BUSINESSES are being encouraged to provide feedback on how to make Government ICT contracts more accessible to small innovators.     

Assistant Minister for Digital Transformation Angus Taylor has called on technology companies, start-ups and digital providers to have their say.

“We’ve got to let the outside in; government needs to be porous. We need to open up our ICT contracts to smaller players to solve Government problems,” Assistant Minister Taylor said.

“How we work, how we buy goods and services, how we communicate, is being transformed by digital technology. Government is committed to improving the lives of all Australians through more effective digital services – the opportunity is too great to ignore.

“To capitalise on digital solutions in the private sector, we need to remove barriers for start-ups and SMEs who want to pitch their ideas and win Government ICT work.

“Procurement is the main gateway for the digital technology sector to provide solutions to government.

This gateway needs to be open and streamlined so that new technologies can be deployed quickly to improve public services.”

Speaking at an Open Opportunity forum in Canberra, Assistant Minister Taylor said a future procurement platform should be able ‘to ingest and provide technology’.

“In this framework you would be able to build on Government platforms to provide services and solutions. These solutions may be based entirely or partially on high quality Government data.”

Technology businesses are being encouraged to make a submission to the Commonwealth’s ICT Procurement Taskforce via a consultation paper, a website and upcoming roundtables.

The Taskforce is expected to report back to Government in early 2017.

To make a submission please visit the Department of Prime Minister and Cabinet website: http://www.dpmc.gov.au/ictprocurementtaskforce.

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AN EXPERT in life cycle finance says changes to the Age Pension may lead some pensioners towards risky investments.

Professor Susan Thorp from the University of Sydney Business School has extensively assessed the changes to the Age Pension proposed in the 2015-16 Federal Budget that come into effect this year.

“Changes to the Age Pension Means Tests are likely to encourage wealthier pensioners to spend their savings more quickly than they otherwise would have and take on more financial risk,” Prof. Thorp said.

“Many pensioners, especially the less wealthy and more elderly, hold onto their financial assets into old age.

“However, historically, wealthier pensioners affected by the assets test spend their savings at significantly faster rates than full pensioners,” she said.

“This is partly because less wealth means a higher pension for this group. Recent changes encourage better-off retirees to use up their nest eggs faster, rather than preserve and pass their wealth on.

“Risky investments will also look a little more attractive to some pensioners. The new asset test means that the pension compensates for financial losses at a higher rate than previously.

“If assets fall by $1,000, the pension rises by $78 compared to $39 previously.”

www.sydney.edu.au

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WITH ONLY a few days left for Australians to finalise their Christmas shopping, the Australian Retailers Association (ARA) reminds consumers of the most sought after Christmas gifts this silly season and where to source produce for this Sunday’s Christmas lunch.

With Australians set to spend more than $48.1 billion in retail stores over the Christmas trading period from November 14 to December 24 2016, Roy Morgan’s Young Australians Survey has predicted the hottest-selling gifts for kids this Christmas.

Apple electronics top the ‘cool list’ with 69 percent of children voting the iPad as the best gift this Christmas, closely followed by 54 percent of children thinking the iPhone will be a nice stocking surprise.

While Apple-branded products take out majority of the top 10 hottest products this Christmas, the Fitbit appears to be the favorite amongst adults. This product continues to take the lead as the number one searched for gift two years in a row.

Following the technology trend, Hatchimals hit the top spot in the toy department, with major retailers seeing these interactive hatching eggs fall off the shelves.

Steve Cox, Dymocks managing director says Harry Potter is a Christmas stocking must have for all book lovers out there.

“It can’t be Christmas without the magic of Harry Potter,” said Mr Cox, “The last few months have seen the release of the Illustrated Harry Potter and the Chamber of Secrets and the original screenplay of Fantastic Beasts and Where to Find Them, so whether you’re an existing fan or new to the wizarding world, they make the perfect addition to any reader's bookshelf,” Mr Cox said.

For those looking to fill the family table for Christmas lunch, Sydney Fish Market is expecting more than 100,000 shoppers to visit the market between Friday December 23 and Saturday December 24 to source their fresh seafood for their Christmas feast.

ARA Executive Director, Russell Zimmerman says fresh fish, prawns, oysters and scallops are likely to be on everyone’s Christmas menu this year.

“With the sun promising to shine brightly this Christmas day, we are expecting Australians to shop big on fresh seafood for the long-anticipated Christmas barbie,” Mr Zimmerman said.

Sydney Fish Market general manager, Bryan Skepper, says the Sydney Fish Market is a foodie’s haven and a one-stop shop for all Christmas supplies.

“It’s obvious that adults see the Christmas holiday as a seafood celebration as we expect to trade 700 tonnes of fresh seafood this year, that’s equivalent to the weight of 350,000 Christmas trees,” Mr Skepper said.

Although the Sydney Fish Market expects to trade more than 200 tonnes of prawns and 900,000 oysters, Mr Skepper says this Christmas is not all about seafood.

“Shoppers can also grab a Christmas turkey or a rare-breed Kurobuta Ham from the market’s butcher, get advice from the bottle shop on the best wines and beer to accompany their Christmas meal, or even pick up fresh bread from the bakery.”

This weekend will see a surge of foot traffic across all retail stores with Australians stocking up for Christmas celebrations and purchasing last minute supplies to tide them over on Christmas Day when stores may be closed.

“With Australians to hit the stores in force late this week, we ask that shoppers remain patient as retail staff manage the increased number of customers,” Mr Zimmerman said.

For a full breakdown of Christmas trading hours state by state please view our Christmas Public Holiday Circular.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $300 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 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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