NATIONAL retail spending saw a 3.6 percent growth (year-on-year) in April 2016, according to the Australian Bureau of Statistics (ABS), with food retailing posting a soft figure of 2.4% year on year.

The ARA believes this reported figure can be attributed to the competition between the major supermarkets and the increasing presence of discount retailer Aldi, causing deflation within the supermarket sector.

“With supermarkets accounting for nearly 50% of all retail sales, the soft increase of only 2.16% year-on-year in supermarkets contributed to the low growth of the retail sector of 3.6%” ARA Executive Director, Russell Zimmerman said.

The household goods category represents the highest growth figures at 5.8% (year-on-year), reflecting strength of the housing market and the resulting effect on consumer confidence.

Clothing and footwear has maintained a growth of 4.76% (year-on-year) due to heavy discounting - meaning volumes are up at the expense of margins. New players and competition entering the market has also had a significant effect on growth causing further discounting.

“The figures reported today by the ABS also highlight a number of trends in regards to state specific retail trade,” Mr Zimmerman said.

The large service sector based states (VIC 4.30%, NSW 4.95%) are growing strongly, while the traditional mining states (QLD 1.20%, WA 2.04%) are experiencing low growth as they go through a period of structural adjustment.

Tasmania has shown a particularly impressive growth figure of 5.85% (year-on-year), appearing to be off the back of a strong economy and robust tourism industry.

MONTHLY RETAIL GROWTH (March 2016 – April 2016 seasonally adjusted)

Household goods retailing (0.3%), Other retailing (0.2%), Food retailing (-0.3%), Clothing, footwear and personal accessory retailing (0.5%), Cafes, restaurants and takeaway food services (1.0%) and Department stores (0.4%).

Northern Territory (0.7%), South Australia (0.5%), Australian Capital Territory (0.9%), Victoria (-0.3%), Tasmania (1.0%), Western Australia (0.6%), New South Wales (0.3%) and Queensland (-0.1%).

YEAR-ON-YEAR RETAIL GROWTH (April 2015 – April 2016 seasonally adjusted)

Household goods retailing (5.8%), Cafes, restaurants and takeaway food services (3.0%), Food retailing (2.4%), Clothing, footwear and personal accessory retailing (4.8%), Other retailing (4.4%) and Department stores (3.6%).

New South Wales (5%), South Australia (3.4%), Tasmania (5.8%), Victoria (4.3%), Australian Capital Territory (6.8%), Western Australia (2.0%), Queensland (1.2%) and Northern Territory (1.6%).

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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AUSTRALIA'S diverse exhibition and event sector will celebrate its inaugural Global Exhibitions Day at Melbourne Convention and Exhibition Centre (MCEC) on Wednesday June 8, 2016, to highlight the impact the exhibition industry has on local economies – igniting innovation, trade and business development.

To mark the occasion an ‘MCEC Global Exhibitions Day Oration’ will be delivered by innovator and futurist, Justin Baird, who will explore how the changing pace in technology, coupled with the global nature of business, means the growth of the economy requires the power of exhibitions.

This free public event, designed to provide attendees with a different perspective on the Australian exhibition industry, is being delivered in partnership with the Exhibition and Event Association of Australasia (EEAA) and forms part of their wider series of special events to celebrate the inaugural day.

During 2013-14, over 2,000 exhibitions were held across Australia, attracting over 9 million visitors. These exhibitions generated an expenditure of $3.1 billion and contributed a direct economic value of $1.5 billion. 

MCEC’s Chief Executive, Peter King said the creation of a Global Exhibitions Day was significant in acknowledging the important role the exhibition industry plays in fuelling local and national economies.

“Most do not realise how powerful and influential the exhibitions sector is within our wider business events industry. In 2013-14 alone the sector generated over 21,000 jobs for exhibition organisers and exhibitors in Australia.

"Victoria hosts the largest number of exhibitions in Australia, with exhibitions making up 20 percent of MCEC’s total revenue,” Mr King said.

MCEC recently unveiled its plans to expand, adding a new flexible event-space that will bring the venue’s total pillar-less exhibition space to 40,000 square metres. This provides an opportunity for current exhibitions to grow and to further accommodate an ever-increasing conference and exhibition market.

“Within our additional exhibition space we’ll be adding retractable theatre seating for 1,000 people, which provides our exhibition customers greater versatility in staging their events,” Mr King added.

Click here to register for your free ticket to the MCEC Global Exhibitions Day Oration.

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THE CEO of Council of Small Business of Australia (COSBOA) says the Australian Council of Trade Unions (ACTU) should expel the Shop Distributive and Allied Employees' Association (SDA) as a member.

This comes following the Fair Work Commission’s ruling that Coles left workers worse-off due to the latter’s and SDA’s bargaining agreements.

The Secretary of ACTU stated that the findings by the Fair Work Commission show the system works, but Peter Strong, CEO of COSBOA, disagrees saying that the fact this has been occurring for at least six years shows a systemic failure.

“ACTU need to expel the SDA from their membership. The SDA still has on its website a call to arms for people to fight against lower penalty rates, while they have up to 100 agreements with the biggest businesses in Australia to actually have lower penalty rates, and in some situations remove them altogether. The hypocrisy and duplicity of the SDA is breathtaking,” says Mr Strong.

COSBOA has called on the Fair Work Commission to deregister the SDA due to their proven treachery.

“How did so many illegitimate enterprise agreements get approved by the Fair Work Commission? The Australian Labor Party (ALP), the Greens and others have campaigns against high penalty rates falsely influenced by a campaign run by the SDA. A campaign that misrepresented the facts and forced thousands of workers into low paid jobs, while forcing many small businesses to close,” says Mr Strong.

Mr Strong also called on the ALP to admit that small business has been disadvantaged by this campaign, while big businesses have benefited.

He states: “How can the ALP support a campaign that in the end targeted the likes of newsagents, coffee shops, bookshops, pharmacies, gift shops and small restaurants?

“These businesses are not just the backbone of the economy but also of our culture. In the end, the only businesses that paid double time on a Sunday were small businesses. All the big businesses had a deal with the SDA that paid under award rates.”

COSBOA fully backs changes to competition regulations to stop unethical practice from organisations like Wesfarmers (who own Coles) and the SDA from being created. COBOA recommends The Effects Test in section 46 and even stronger measures are needed.

“The Labor Party and The Greens need to stop listening to the SDA and start listening to the real defenders of workers’ rights and provider of jobs - small business people,” says Mr Strong.

“The union movement cannot sweep this activity under the carpet.  If they really care for workers, then their actions need to show this. At the moment there appears to be a difference,” concluded Mr Strong.

www.cosboa.org.au

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A FEDERAL report into the system of taxpayer subsidies for green activists’ activities reveals the current governance of the system needs an urgent overhaul, according to the Queensland Resources Council.

The report, from the House of Representatives Inquiry into the Register of Environmental Organisations, was handed down today, after launching early last year. 

Queensland Resources Council Chief Executive Michael Roche, who appeared as a witness at one of the Australia-wide hearings last year, said it was high time the light was shone onto the questionable activities of some green activist groups.

‘The myriad of evidence uncovered as a result of the inquiry reveals that some green activists – not all – may have been breaching the rules of the tax system,’ Mr Roche said.

‘Our submission to the inquiry identified alleged breaches of the Tax Act under the rules governing those registered on the Register of Environmental Organisations, on which almost all of the green activist groups are registered.

‘The recommendations from the inquiry include, abolishing the Register of Environmental Organisations, and making all organisations that claim Deductible Gift Recipient Status, come under the Charities Act – a move the QRC strongly endorses.

‘Such changes would ensure any groups using taxpayer funds would have to operate under the Charities Act, which the QRC believes has much stricter governance and rules compared to the existing Register of Environmental Organisations.’

Mr Roche also welcomed the recommendation that each environmental deductible gift recipient organisation must spend at least 25 per cent of its income on actual environmental remediation work.

‘For too long some activist groups have been unfettered in diverting taxpayer subsidised donations to campaigns against sectors such as resources and to litigation to disrupt and delay resource projects,' Mr Roche said.

‘A perfect example is the Australian Conservation Foundation case against the Adani Carmichael coal mine that commenced this week in the Federal Court.’

www.qrc.org.au

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THE Australian Retailers Association (ARA) is concerned for the future of the retail industry after the Fair Work Commission has today awarded an unmanageable $15.80 a week increase in the minimum wage.

From 1 July 2016, the National Minimum Wage will increase to $672.70 a week, or $17.70 per hour.  For retailers it will see the rate for shop assistants increase by $17.30 per week to $738.80 per week, or $19.44 per hour.

Executive Director Russell Zimmerman said the ARA advocated before the tribunal a realistic and manageable minimum wage increase of no more than $7.90 per week for the retail sector.

“We are obviously concerned about the effects this decision will have on retailers.

“Retailers and young Australians have been reliant on pay rates to enable retail to bring on low-skilled young staff and increase their skill levels, reducing youth unemployment. Many small to medium enterprise retailers are reliant on a minimum wage workforce, and the announcement today to increase wages during this time of low consumer confidence and low growth will sadly result in further job losses and business closures – a very distressing truth for retailers.

“The minimum wage increase, coupled with weak trade figures and penalty rates, will only cause further damage to retailers who are struggling to keep their heads above water as it is. With nervousness during the election period, weakening retail trade figures and global economic concerns the retail industry cannot simply keep up with excessive wage increases.

“The ACTU and SDA aren’t about creating jobs and opportunity but they now continue a low productivity/high wages agenda which will only harm retailers and their employees,” Mr Zimmerman said.

"There appears to have been no if little consideration taken into account of the fragile economy, risk to jobs or low growth for sectors such as retail by the Commission."

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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AUSTRALIAN small business owners have reacted positively to key measures introduced in the recent Federal Budget, new research from MYOB reveals.

Over half (56 percent) of small businesses believe that lowering the company tax rate to 27.5 percent for businesses with up to $10 million in revenue will  have a positive impact.

The latest SME Snapshot also found that SMEs support increasing the instant tax write-off eligibility to include businesses generating up to $10 million in revenue. The survey found that 50 percent of small businesses believe this eligibility increase would benefit their business.

“While this year’s budget has come under fire for favouring big business, the results show that the majority of Australian SMEs believe that lowering the company tax rate is an important reform and will encourage growth.  For every dollar a small business spends with a big business, big businesses spend $2 with small businesses – it is an ecosystem and we need to make sure all parts are healthy,” said Tim Reed, CEO of MYOB.

The survey also revealed that 72 per cent of SMEs agreed growth would be encouraged through widening the definition of a small business. Tim Reed believes this move will result in SMEs feeling less restrained when it comes to planning for business success.

“It’s encouraging to see these barriers to growth removed. The previous system discouraged SMEs to grow beyond $2 million in revenue because they lose the benefits of being a small business. Small businesses often rely on bigger businesses as customers – without stimulating investment in bigger business, small businesses won’t receive the positive flow on effect,” said Mr Reed.

In this month’s survey, small businesses were also asked if they were in favour of the reduction in GST codes from seven to three as part of the government’s BAS simplification trial. Not surprisingly, almost half of the businesses surveyed (47 per cent) were in favour of the new measure.

Youth Jobs PaTH – Prepare, Trial, Hire

SMEs were also asked how likely they would be to employ someone under the age of 25 years through the Federal Government’s new PaTH initiative. Encouragingly, almost a third of SMEs (31 percent) confirmed they were likely or very likely to consider hiring a job seeker through this program. Younger business owners, aged under 40 years, were more likely (58 per cent) to use the program to hire young people.

“I believe we all should be very encouraged by these results. If just a small portion of Australia’s 2M SMEs took part in this new initiative and consider hiring a young Australian it will be a big success. There are nearly a quarter of a million young Australians out of work, so it is great to see SMEs becoming part of the solution to youth unemployment.

“With millennials set to define the future of the Australian workforce, we encourage small businesses to be a part of this internship program, and do what they can to create opportunities for the younger generation,” said Mr Reed.

www.myob.com

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Statement from Victorian Chamber of Commerce and Industry Chief Executive Mark Stone
 
The Victorian Chamber welcomes the release of the Victorian Auditor-General’s Report on reducing the burden of red tape, which was tabled in Parliament this week.
 
The Victorian Chamber has long championed the cause of red tape reduction, most recently in our 2016-17 State Budget Submission.
 
The Auditor General’s recommendations echo the calls of the Victorian Chamber to increase the level of public reporting on red tape reduction initiatives and to engage with businesses and the community to identify red tape priorities.
 
The report notes that a number of positive practices are being demonstrated by regulators and government agencies, including a sustained focus on red tape reduction; more rigorous assessments of the impact of red tape cuts and improvements in consultation.
 
However, the report also found that more needs to be done to understand how the red tape burden is changing in response to Victoria’s evolving economy, better assess whether past reforms have delivered on their objectives and engage more widely on red tape initiatives across government.
 
The Victorian Chamber will continue to work with the Government, the Red Tape Commissioner and the Commissioner for Better Regulation to reduce the burden of regulation on Victorian business.

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au

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IN PASSING a government bill to end sand mining on North Stradbroke Island in 2019, the Queensland Parliament has delivered a trifecta of pain for the state’s resources sector, according to a statement from Queensland Resources Council (QRC).

"In a mere five weeks the Parliament has backed the Palaszczuk Government’s ill-conceived Chain of Responsibility law which has sent shockwaves through industry and it has created open slather for objections in the courts to mining projects, even allowing people or entities in foreign countries to object to a Queensland mining project," QRC chief executive Michael Roche said.

"To cap it off, the Parliament has backed the government’s bill to close sand mining operations with the loss of up to 153 full time jobs in Sibelco’s mineral sands business.

"There will also be a severe flow-on effect with hundreds more contractors and businesses that rely on the Sibelco mine on the island also greatly impacted. 

"Premature closure of the mine and an inadequate economic transition strategy will be a sure recipe for a social and economic disaster for the Stradbroke Island community.

"At a time when the mining sector is under extreme pressure and losing jobs, Queensland cannot afford the luxury of pandering to minority pressure group demands to shut down a mining operation that has proved to be one of the most responsible, productive and durable in the state.

"The reality is that the evidence from elsewhere in Australia proves that economic diversification and transition from an existing major industry in a community is a long-term process.

"It takes many years to be self-sustaining and requires a far bigger transition package than the proposed $20 million. QRC notes that in the state budget, only $2.5 million was allocated to this package before mid-2017.

"Mineral products from Stradbroke Island are exported around the world and are used for a wide range of everyday items with high quality silica used in glass for bottles and windscreens, plasma TV screens and solar panels."

www.qrc.org.au

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