Last night the Federal Government released its 2020-21 Budget.
As reported by Ragtrader, key business initiatives include tax relief and incentives to take on new apprentices and trainees.
Treasurer Josh Frydenberg also announced the JobMaker hiring credit which will encourage businesses to hire younger Australians.
The JobMaker payment will be payable for up to twelve months and is immediately available to employers who hire those on JobSeeker aged 16-35.
It will be paid at the rate of $200 per week for those aged under 30, and $100 per week for those aged between 30-35 and new hires must work for at least 20 hours a week.
The budget also includes tax cuts for Australians already in jobs in the hope that they will spend the extra cash rather than save it.
The government is also building on the Instant Asset Write Off scheme.
The program will see over 99% of businesses able to write off the full value of any eligible asset they purchase for their business.
This will be available for small, medium and larger businesses with a turnover of up to $5 billion until June 2022.
Speaking on these measures, Pitcher Partners partner Mark Harrison said that if the government's strategy works, it will benefit retailers.
"The big ticket item for those who can afford to invest will be the option to write off the entire cost in one year, rather than having the asset depreciate over several years, with this instantly available to businesses with a turnover of less than $5 billion each year.
"That will capture all most all businesses and almost all eligible purchases, which give businesses a strong incentive to spend.
"Similarly, reductions to some fringe benefits tax obligations for electronics may provide additional sales for such retailers.
"Continuing to support business to move to digital platforms may assist retail businesses that are not yet harnessing the digital age or have scope for further improvement.
"Support for traineeships and apprenticeships may support retail businesses with training obligations, such as hairdressers, to develop their workforce with a lower investment, and the JobMaker package of wage support will also encourage retailers to look at options for non-apprentice roles.
"The personal tax cuts should buoy the retail sector, and an increase in disposable income around the average wage should flow through to consumption.
"There is a question whether all of the increase will be spent, or will some be applied to debt reduction or savings given consumers maybe feeling a little more at risk in regard to job security or generally conservative.
"Overall stimulus is significant, and if successful, the re-ignition of the economy will help all retailers," he said.
Meanwhile, National Retail Association traineeship advisor Ginny Morris welcomed the news of further investment into on-the-job training.
"Retail traineeships are somewhat under-utilised in Australia, despite the fact that subsidised training and Government incentives are in place.
"Traineeships offer small businesses an opportunity to build of pool of high-quality future recruits for the sector.
"Employers can design the traineeships themselves, in partnership with the training provider, to ensure that the programme suits the needs of the business and the trainee.
"The subsidy will be an effective way to upskill our existing pool of workers and secure savings for retailers struggling from the effects of the pandemic," she said.