The National Retail Association (NRA) has applauded Federal Treasurer Scott Morrison's proposition to implement business tax cuts in the latest budget outline.
The proposed cuts will aim to allow small to medium businesses to invest back into the business and boost employment.
NRA industry and data analyst Cameron Meiklejohn said that tax cuts would bolster major support for retail business owners.
“There are 87,000 SMEs in Australia - a large number of which are in the retail sector.
“Cutting their tax rate will support these businesses and their team members.
“It is certainly hoped that these proposed tax breaks will enable small to medium businesses to invest back into their own businesses, and create more jobs for everyday Australians.
“This is good news for retailers, who have faced unprecedented competition from overseas retailers who aren’t facing the same cost imposts, such as high award wages and penalty rates, restrictive trading hours, penalising lease agreements, as well as high business tax rates.
“SMEs are the heart of the economy and must be able to compete in order to create continuing employment opportunities, which in turns leads to economic growth for all Australian.”
In addition the move will reportedly lift the upper limit for the middle income tax brack from $80,000 to $87,000 which is estimated to give middle income earners an addition $315 per year.
Meiklejohn believes the tax cuts could also encourage growth in consumer confidence following a recent dip.
“We have seen reasonably flat consumer confidence in recent months, a decline in the Australian share market, a cooling in the housing market, all of which is creating caution around consumer spending.
“We certainly hope that a number of measures outlined in the budget will generate momentum in the economy.
“When retail is flourishing, it drives productivity and jobs growth right across the country, and we believe a number of these measures will stimulate the retail sector considerably.”