Business News Releases

Retailers hopeful low cash rate will be enough to stimulate pre-Christmas sales

PEAK retail industry body the Australian Retailers Association (ARA) said the retail industry is hoping the Reserve Bank of Australia’s (RBA) decision to keep the cash rate on hold at 2.5 percent will provide enough stability to stimulate pre-Christmas sales as the crucial festive season fast approaches. 

ARA Executive Director Russell Zimmerman said the RBA remains one of the few central banks able to offer that support to the economy globally.

“While retailers didn't receive their Christmas wish of an interest rate cut today, the industry remains optimistic that the festive trading period will soon be in full swing and the stable cash rate may encourage consumers to loosen their purse strings early-mid November in the lead up to Christmas.

“While in an ideal world the RBA would be able to lower interest rates even further to support small businesses, the fact that the cash rate has remained low for some time now has seen retail trade figures increase (albeit slightly) month on month.

“ABS figures released this morning indicated monthly retail sales for the month of September increased 1.2 percent (month on month). In order for sales to continue building momentum as Christmas approaches, and for the retail industry to return to a growth of 6 percent, the Federal Government and RBA must do all that they can to ensure that retail trade is fully supported as consumers start to plan their holiday shopping.

“Some areas of Australia have also felt the effects of upcoming state elections which may result in lower levels of consumer confidence – an issue that businesses could certainly do without at this crucial time of year. With states such as Tasmania (0.8%) Queensland (0.4%) and Northern Territory (-0.6%) all falling under the month on month growth of 1.2 percent, the RBA must continue to hold a steady hand and ensure these states return to a percentage growth closer to the national average.

“There has been talk that interest rates may start to rise in 2015 but retailers believe the RBA will need to continue to support the economy via low interest rates for some time,” Mr Zimmerman said.

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Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

ABS September 2014 retail trade figures released today - 1.2 percent increase

PEAK retail industry body the Australian Retailers Association (ARA) said the seasonally adjusted rise (1.2 percent increase) in monthly retail trade figures (month-on-month) reported today by the ABS followed a 0.1 percent rise in August 2014.

Year on year retail growth rose 5.7 percent in September 2014 (seasonally adjusted, compared to September 2013).

ARA Executive Director Russell Zimmerman said retailers noticed a small upward swing in sales in September despite unsteady levels of consumer confidence.

“In seasonally adjusted terms the largest contributor to the rise was household goods retailing (4.1%) where electrical and electronic goods retailing recorded growth (9.2%). According to the ABS, this figure was heavily influenced by the release of the iPhone 6 during the month of September.

“Other industries which experienced rises were cafes, restaurants and takeaway food services (2.0%), food retailing (0.4%) department stores (1.3%) and clothing, footwear and personal accessory retailing (0.4%).

"As the ARA predicted last month, the arrival of spring certainly provided the above sectors with a boost in sales with consumers stepping out to socialise at their local cafes and restaurants as well as much-needed encouragement to start purchasing new summer stock in stores across the country.

“In seasonally adjusted terms the states which displayed rises were New South Wales (1.7%), Victoria (1.3%), Western Australia (1.3%), Queensland (0.4%), South Australia (1.2%), the Australian Capital Territory (1.9%) and Tasmania (0.8%). This was partially offset by a fall in the Northern Territory (-0.6%).

“The Australian Retail Index (delivered by BDO and Retail Express) reports that retailers across the country saw mixed sales results during September with all sectors showing a level of inconsistency. By mid-September, retailers in the fashion and accessories sector were grinning after two very strong weeks of sales.

"These results mirror sales growth for the same period in 2013, suggesting that the change in season had a positive impact and that consumers were shedding winter fashion to prepare for the warmer months ahead. By the end of September however, sales were down again across most sectors – continuing the rollercoaster ride for this sector during the first month of spring.

"Overall, September’s results are certainly a positive sign for the retail sector and we remain hopeful that December (year on year) sales will achieve 6 percent growth.

“Pre-Christmas sales are almost upon us and it is now imperative that the Federal Government and RBA do all that they can to ensure that retail trade is fully supported. The festive season is an extremely important time for retailers to make up for what has been a tough year in business,” Mr Zimmerman said.

MONTHLY RETAIL GROWTH (August 2014 – September 2014 seasonally adjusted)

Household goods retailing (4.1%), Cafes, restaurants and takeaway food services (2.0%), Department stores (1.3%), Food retailing (0.4%), Clothing, footwear and personal accessory retailing (0.4%), Other retailing (-0.2%) and Total sales (1.2%).

Australian Capital Territory (1.9%), New South Wales (1.7%), Victoria (1.3%), Western Australia (1.3%), South Australia (1.2%), Tasmania (0.8), and Queensland (0.4%) and Northern Territory (-0.6%). Total sales (1.2%).

YEAR-ON-YEAR RETAIL GROWTH (September 2013 – September 2014 seasonally adjusted)

Cafes, restaurants and takeaway food services (11.7%), Household goods retailing (9.7%), Food retailing (5.8%), Other retailing (3.4%), Clothing, footwear and personal accessory retailing (-0.3%) and Department stores (-4.1%). Total sales (5.7%).

New South Wales (9.4%), Tasmania (7.2%), Victoria (6.7%), Western Australia (3.3%), South Australia (2.6%), Australian Capital Territory (2.5%), Queensland (1.8%) and Northern Territory (1.1%). Total sales (5.7%). 

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Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

What you can do in the workplace for World Stroke Day, today

This World Stroke Day the National Stroke Foundation is urging workplaces and individuals to act FAST to identify the signs of stroke.

FAST is an easy to remember, simple way to recognise if someone may be having a stroke: Face – has the person’s mouth drooped? Arms – can they lift both arms above their head? Speech – is their speech slurred? Can they understand you? And Time – call triple zero (000) immediately, do not delay. 

Standard Solar is among the workplaces supporting the National Stroke Foundation’s FAST campaign through the First Hour initiative. The company is encouraging and supporting its workforce to donate one hour of pay to the National Stroke Foundation in support of FAST in addition to providing stroke education.

Standard Solar Managing Director Rob Grainger said the company is supporting First Hour and FAST initiatives as the team knows first-hand the impact of stroke and the value of time in its treatment.

“I am alive today because my mum recognised the signs of stroke and many of our team have also seen the impacts of stroke within their families,’’ Mr Grainger said.

Mr Grainger was just 41 when he was struck down by a massive stroke. It was a Sunday night and Mr Grainger was alone at home and speaking to his mother interstate on the phone. While talking, Mr Grainger’s mum noticed his speech started to slur and Mr Grainger began feeling weakness in his arms.

“I was talking to my mum [while experiencing symptoms] and over the phone she knew what was happening, she said ‘I think you are having a stroke, you had better get to the hospital.”

On hanging up the phone Mr Grainger’s mother immediately called an ambulance, sending it to Mr Grainger’s home and saving his life. Doctors said, without his mother’s quick action treatment would have been delayed and Mr Grainger may have died or been left with a serious disability.

Following the stroke Mr Grainger spent four months in hospital learning to walk and talk again; today a minor limp and his rapid speech are the only indications of his stroke.

“You think stroke is an older person’s problem and not something to worry about, you don’t think that at 41 you will have a stroke. But it can happen to anyone, you don’t know why or who,’’ he said.

National Stroke Foundation National Director Programs Rebecca Naylor said time was critical in treating stroke.

“Time is a vital weapon against stroke. Every minute counts. The sooner the person having a stroke gets help and critical treatment, the better the chance of survival and quality of life,’’ Ms Naylor said.

“One in six people will have a stroke in their lifetime and 30 percent of stroke survivors are of working age, yet most Australians still don’t really understand what a stroke is or what to do about it.”

The National Stroke Foundation is urging work places across the country to get behind First Hour and the FAST initiatives by supporting a donation by their workforce and providing education on the signs of stroke.

“We are asking for people to donate one hours, just one hours pay, this doesn’t seem like much but collectively it makes a huge difference,’’ Ms Naylor said.

“If we can educate more people on the signs of stroke and what to do when they see a stroke happening, we can help save lives and slash disability.”

Register online to join First Hour at www.strokefoundation.com.au

The National Stroke Foundation supports workplaces with resources to help promote and support the campaign including a how to guide, promotional video, posters, digital materials, an elevator speech to start conversations around the campaign and an employee deduction authority.

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VTIC congratulates Victoria’s tourism award winners

THE Victoria Tourism Industry Council (VTIC) has congratulated the winners of the 2014 RACV Victorian Tourism Awards for the outstanding contribution they make to the state’s tourism sector.

“On behalf of the industry I congratulate the award winners who have been recognised for the outstanding contribution they make to tourism in our state,” said VTIC Chief Executive Dianne Smith.

"VTIC is delighted to see so many of our members achieving success and recognition through these awards, as the majority of winners and finalists (over 62%), are VTIC members.

"Solid business foundations are essential for a sustainable and professional tourism industry. The Victorian Tourism Awards are a wonderful way of showcasing business excellence, as well as the depth and breadth of products and experiences in our state."

Ms Smith’s comments come in the wake of more than 900 tourism and event industry leaders and professionals gathering at the Melbourne Convention and Exhibition Centre last night to celebrate the 30th anniversary of the awards which showcase the leading tourism products, experiences and services across the state.

Some of the winners by category included: 

- Sovereign Hill - Major Tourist Attractions
- Peninsula Hot Springs - Tourist Attractions
- Melbourne Cup Carnival - Major Festivals and Events
- Bendigo Tramways - Heritage and Cultural Tourism
- Melbourne Convention and Exhibition Centre - Business Tourism
- BIG4 Beacon Resort - Tourist and Caravan Parks
- Naturewise Eco Escapes - New Tourism Development
- Alla Wolf-Tasker - Outstanding Contribution by an Individual
- Fowles Wine Cellar Door Café - Tourism Wineries, Distilleries and Breweries
- Frankston Visitor Information Centre - Visitor Information and Services 

The evening was opened by Minister for Tourism and Major Events, the Hon. Louise Asher MP, and the audience was also treated to a performance by the cast of “Once”, the musical currently showing at the Princess Theatre.

Once again VTIC played a significant role in the tourism awards program, delivering preparatory workshops across the state, as well as coordinating the entrants’ mentoring program and judging panel.

The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s tourism and events industry, providing one united industry voice. Tourism and events are growth industries for Victoria and contribute $19.6 billion to the state economy each year and employ more than 200,000 people.

vtic.com.au

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Victoria’s business community shows resilience in the face of continued tough trading conditions

DESPITE challenging trading conditions, business sentiment for the Australian economy improved by four percentage points during the September 2014 quarter, while the Victorian economic outlook remained relatively stable, according to a leading business survey released this week.

The latest VECCI - Bank of Melbourne survey of business trends and prospects has shed further light on business sentiment and the challenges it anticipates in the year ahead.

The state-wide survey of more than 400 businesses, across seven major industry sectors, found that trading conditions remain positive over the quarter with a number of sectors reporting an improvement in sales, with further growth forecast into December.

However, trends in profitability and employment showed little improvement over the quarter, largely due to continuing increases in wages and other labour costs.

The survey found regional respondents were more likely to have experienced increased business costs and weaker profits than their metropolitan counterparts.

Looking at the performance of individual industries, the survey found that service sector exports, in industries like finance, property and business services, were relatively healthy over the quarter.

This relatively strong performance in part reflects the influence of the falling Australian dollar and strong efforts by business to develop new products and markets in the competitive global marketplace.

“While business prospects in the lead up to Christmas are positive, the fact remains that many small businesses continue to experience tough trading conditions,” said VECCI Chief Executive Mark Stone.

"In the lead up to the state election, both major parties must commit to measures that reduce costs for business and spur employment.”

VECCI & Bank of Melbourne partnership 

VECCI is pleased to partner with Bank of Melbourne. The bank supports VECCI’s quarterly survey of business trends and prospects, Business Leaders event series and Women in Business event series. The partnership builds on both VECCI’s and the Bank of Melbourne’s mutual goals in supporting businesses in Victoria.

Background – About VECCI

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential employers’ body in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.vecci.org.au

Background – About Bank of Melbourne

Bank of Melbourne is investing in Melbourne and regional Victoria. Since re-launching in July 2011, the bank has tripled its workforce, opened 93 branches and become even more involved in the local community. The bank partners with the organisations and events that matter to Victorians. As a full-service bank, its team of lenders, account executives and industry specialists are supporting Victorian businesses, both large and small.

www.bankofmelbourne.com.au

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Seize MCEC expansion job creation opportunities: VTIC

BOTH major parties must commit to measures that make Victoria’s key tourist attractions more enticing to Asian visitors and attract additional cultural events to regional Victoria, said Victoria Tourism Industry Council (VTIC) Chief Executive Dianne Smith today.

In welcoming the Coalition Government’s commitment to expanding the Melbourne Convention and Exhibition Centre (MCEC), Ms Smith called on policy makers to adopt complementary recommendations to ensure Victoria capitalises on the resulting visitor growth.

“VTIC applauds the Coalition Government’s decision to expand MCEC, and urges Victorian Labor to echo this commitment, for the significant benefit it will bring to Victoria’s business events’ and tourism sector,” said Ms Smith.

“Improving this facility will result in more visitors to our state, so there’s now more than ever a need to ensure we take the opportunity to grow jobs.”

VTIC calls for the major parties to commit to the following:

- Grow the events’ sector by establishing a dedicated sales team to secure new and expand existing regional medium-sized events.

Cost: $2 million annually
Estimated state-wide job creation: 600
 
- Make Victoria’s tourist attractions more appealing to the lucrative Asian visitor market through culturally appropriate upgrades to displays, ticketing and visitor information.
Cost: $7 million annually
Estimated state-wide job creation: 1600
 
Tourism could create nearly 9,000 additional jobs for Victoria over the next two years if the right policy settings are in place, according to VTIC research.

“As a growth sector in a rapidly changing economy, tourism has great job creation potential as it brings in visitors who spend money, which creates jobs and sustains communities,” said Ms Smith.

Ms Smith’s comments come ahead of the tourism industry’s celebration of the 30th anniversary of the Victorian Tourism Awards, which showcases the leading tourism products, experiences and services across the state.

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The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s tourism and events industry, providing one united industry voice. Tourism and events are growth industries for Victoria and contribute $19.6 billion to the state economy each year and employ more than 200,000 people.

vtic.com.au

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VECCI supports Spring Repeal Day action

VECCI Chief Executive Mark Stone has welcomed the Commonwealth Government’s announcement that it will introduce legislation to repeal nearly 1,000 unnecessary pieces of legislation and regulations that will save individuals, businesses and the not-for-profit sector over $2.1 billion in compliance costs. 

"Creating a one-stop shop for environmental approvals will have particular benefits for Victorian businesses as it will remove unnecessary duplication and make the approvals process for major projects simpler and quicker," Mr Stone said.

"VECCI is also pleased with the inclusion of a number of measures targeting small business, including establishing the Fair Work Ombudsman’s Small Business Helpline, amending the Franchising Code of Conduct and improving tax office communication with small business.

"Business recognises that well-designed regulation can provide benefits for business and the wider community by improving economic stability, providing operational certainty and increasing consumer confidence.

"However, because regulations affect all facets of business, including inputs, prices, and output, unnecessary, complex and poorly designed regulations also constrain the ability of business to provide the best product or service at the lowest cost," Mt Stone said.

"The priority given to red tape reform by the Commonwealth Government is welcomed by VECCI and needs to be echoed by all governments."

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The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential employers' organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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Legal rules for tax disputes under scrutiny

THE legal rules for tax disputes will come under scrutiny at a public hearing in Canberra tomorrow.

Tax barrister, Mr John Hyde Page, will give evidence before the House Standing Committee of Tax and Revenue in support of his submission to the Committee’s Inquiry into Tax Disputes.

Mr Page has represented clients previously under investigation by Project Wickenby, a cross-agency task force which plays a role in the Government's fight against tax evasion, avoidance and crime.

In his submission, Mr Page stated that:

• objection decisions by the ATO are “often … little more than a ‘cut and paste’ of the audit decision”
• a body separate to the ATO should be responsible for making “fraud and evasion” findings, imposing large penalties, making large default assessments, and issuing garnishee orders and departure prohibition orders
• the Federal Court should have full powers to review a finding of fraud and evasion by the ATO.

A finding of fraud and evasion against a taxpayer has important consequences. The usual two or four year time limits on audits no longer apply and sometimes taxpayers need to provide documents about transactions going back as far as 10 years.

Committee Chair John Alexander MP said that, “The Committee looks forward to hearing about whether the legal rules for tax disputes could be made fairer for taxpayers, while still helping the ATO do its job. This especially applies for findings of fraud or evasion, which have been one of the key issues in the inquiry.”

The Committee will also hear from Mr Richard Wytkin, an accountant and tax agent in Perth.

Wednesday, 29 October 2014
Committee Room 2R1, Parliament House, Canberra
The hearing will be broadcast live at: www.aph.gov.au/live.

4.30 pm (approx.) Mr Richard Wytkin (teleconference) 
5 pm Mr John Hyde Page Submission 22
5.45 pm Adjournment 

For further information: contact the committee secretariat by telephone 02 6277 4821, e-mail This email address is being protected from spambots. You need JavaScript enabled to view it., or visit the committee website http://www.aph.gov.au/taxrev.

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Melbourne Convention and Exhibition Centre expansion a win for Victoria’s business events and tourism

THE Victoria Tourism Industry Council (VTIC) applauded the Coalition Government’s Melbourne Convention and Exhibition Centre (MCEC) expansion announcement today for the significant benefit it will bring to Victoria’s business events and tourism sector.

“This expansion is a key recommendation in our state election agenda to create 9,000 additional jobs through tourism and we have also been a long-time supporter of the need for this project,” said VTIC Chief Executive Dianne Smith.

“Business events are responsible for 22,000 Victorian jobs and this will cement Melbourne's position as the Asia-Pacific’s leading business events destination.

“This year's AIDS Convention highlighted that Melbourne does large-scale conventions very well. The expansion of MCEC will ensure that we can continue to be a leader in this sector well into the future, and augers well for continued support of agencies such as Melbourne Convention Bureau.

“The benefits will be seen throughout Victoria, as over half of all conference delegates travel to regional Victoria and over a quarter of all delegates are accompanied by family or friends who undertake leisure travel to regional Victoria.”

Victoria Events Industry Council Chair Peter Jones also welcomed the announcement.

"The Victoria Events Industry Council is delighted with this announcement. Business events is a fiercely competitive sector that sees Melbourne competing not only with Sydney and Brisbane, but also Singapore and other Asian destinations. This expansion ensures we will remain the premier destination in the region,” said Mr Jones.

The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s tourism and events industry, providing one united industry voice. Tourism and events are growth industries for Victoria and contribute $19.6 billion to the state economy each year and employ more than 200,000 people.

vtic.com.au

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VECCI response to Victorian Labor’s 'Back to School' strategy

 

VECCI chief executive Mark Stone said VECCI welcomes the release of Victorian Labor’s “Back to School” plan for education and skills.

"The policy contains a number of initiatives consistent with Taking Care of Business, VECCI’s 2014 state election agenda, which will help Victoria’s education and training system meet the skills needs of Victoria’s service industries, emerging high growth sectors and industries undergoing change," Mr Stone said.

"Establishing 10 new technical schools will give many school students a head-start in gaining the skills needed for employment and we welcome the focus these schools will have on local industries.

"Technical schools have a vital role to play in providing students with industry experience through school based traineeships and apprenticeships. This training must be capable of evolving as the nature of industry and occupational requirements change," he said.

"The $320 million TAFE Rescue Fund needs to support system restructuring that is responsive to industry, rather than training providers. Sustainability will depend on the extent to which the TAFE sector can meet the training requirements of traditional goods producing industries, service industries and emerging high growth sectors.

"We welcome the commitment to tighten VET regulation to ensure the quality of qualifications; a move that will engender confidence in the system among all stakeholders.

"Increased funding for schools, including independent schools, is positive, however infrastructure alone will not improve student outcomes. Curriculum reform, school leadership and improvements in teacher training and assessment are also required.

"Labor’s promised VET funding review is timely and highly relevant to informing the future direction of skills reform, which must have as its objective the realisation of a significant improvement in training quality and responsiveness."

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The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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Self-interested state politics killing retailers on low value GST

PEAK retail industry body the Australian Retailers Association (ARA) said there is going to be no move on the LVIT GST issue unless self-interested state politics dramatically change in the near future.

ARA Executive Director Russell Zimmerman said politics had got the better of the process with Western Australia (WA), and the blame does need to be leveled at the WA State Government which is refusing to allow changes to the GST unless it gets a bigger share of the GST pie.

“Both the new and previous federal governments have been gradually, if sometimes reluctantly, moving forward on the issue. Ultimately, the final decision was placed on state governments that are not only the recipients of GST revenue but also any approve cost changes to collection.
 
“We know we have had heroes on this issue such as NSW Premier Mike Baird and Federal Small Business Minister Bruce Billson, but there now appears to be a villain in the mix.

“The villains working against the best interests of retailers, even in their own state, have been the WA Government.

“It has to be said this action tops the usual self-interested obscenity which has been witnessed over many years of federation by a number of state governments.

“The ARA, along with many of our members and associate association members, has been trying to get the WA Government to understand the impact this tax is having on its own local retailers. Unfortunately, the ARA and both our small and large retail members have so far failed despite many attempts to change minds in that state.

“What next? The only path to change is to never give up, and for that reason we will be re-engaging with all key stakeholders to once again push the case to change this unfair tax arrangement at all levels of government. We will also be sure to target those governments not acting in the best interests of their local businesses,” Mr Zimmerman said.

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Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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