The Budget for retailers

The Australian Retailers Association executive director, Russell Zimmerman, said the retail sector has seen a slow start to the calendar year, with the global environment and pending Federal election adding to a lack of confidence.

Zimmerman welcomed the Budget proposals.

“Introducing new measures to support business and delivering stimulus to the hip pocket on top of the RBA interest rate cut will be just what the doctor ordered for retail.

“The ARA is pleased to see corporate tax cuts, which will help small to medium businesses and the millions of people they employ. On top of this effort, the work to offset bracket creep through personal tax threshold changes will be a boost for consumer confidence and spending.

“Changes to international tax compliance are welcome, along with the Government’s commitment to fix GST loopholes such as the Netflix Tax and low value GST compliance on goods under $1000, due to be implemented mid next year.

“As Australia’s biggest private sector employer, retailers welcome the Government’s youth skills and jobs programme.”

However the Budget isn’t rosy for all retailers, suggested Zimmerman.

“Retailers in the convenience store and grocery space will be disappointed in light of the Government following the opposition in excise increases, which we know effects spending on other items – particularly for lower income earners.”