The Australian Retailers Association (ARA) is calling for a competitive corporate tax rate to sustain growth for the country’s $310 billion sector.
ARA executive director Russell Zimmerman said the Australian retail industry employs 10% of the working population.
“The current trading environment has seen many retailers doing it tough, with last year’s retail trade figures averaging a 2.76% year-on-year growth, and retail trade growth down more than 1% on the 50 year average in 2017, the Government needs to intervene and offer some relief to the struggling industry,” Zimmerman said.
“At 30%, Australia has one of the highest corporate tax rates in the advanced economic world, making it difficult for retailers to invest in jobs growth and increased wages that would benefit the economy.”
The ARA insists the present corporate tax rate currently discourages international and Australian businesses from investing in Australia and calls on all sides of politics to drive investment and accept the economic benefits tax cuts will create.
“The current corporate tax rate discourages international and Australian businesses from investing in Australia and providing further job opportunities, as many Australian and offshore businesses choose to invest in, and headquarters overseas,” Zimmerman said.
“The Senate needs to cooperate with the Government’s plan to lower the corporate tax rate below 25% so local retailers are able to invest in their businesses and grow the Australian economy.”
Retailers have told the ARA that balancing rising cost pressures with low sales growth and a high-tax environment, it is becoming increasingly difficult with some retailers even struggling to pay their rent.
“As retailers are already struggling in a volatile trading environment, the ARA will continue to advocate for a reduced company tax rate before it stifles future employment and growth,” Zimmerman said.
The Australian retail industry currently employs more than 1.2 million people.
"If the corporate tax rate is not reduced to be more in line with our international counterparts, employees and the underemployed will be the ones who suffer, as employees are the heart and soul of retail.”