Retail industry groups have largely welcomed the Morrison Government's 2021 Budget, praising the measures that encourage consumer spending and business investment.
Tax relief for workers, extension of the instant asset write off, investment in the digital economy, the deregulation agenda, the JobTrainer scheme and the focus on women are some of the measures welcomed by the National Retail Association (NRA), the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) and the Australian Retailers Association (ARA).
Speaking on the measures, ARA CEO Paul Zahra said that the extension of the instant asset write-off is a welcome move, but further flexibility in JobTrainer is needed for retailers to make the most of it.
"The investment in skills is welcome, including a $1 billion extension to the JobTrainer program.
"But for these measures to translate into job outcomes, we need more flexibility for retailers to access the scheme.
"As Australia’s largest private sector employer – with one in 10 Australians working in the industry – retail plays an important role in the employment and skills rebound.
"We welcome the further extension of measures for business to write off the full value of any eligible asset they purchase.
"This will allow businesses to make the investments they need in equipment so they can continue to grow and thrive in the post-COVID world," he said.
NRA CEO Dominique Lamb added that tax cuts will boost spending at retailers, while digital investment will prove positive for the sector.
"Extending tax cuts for low and middle-income earners will mean that everyday Australians will now have more disposable income to spend at the shops, providing an adrenaline boost to retailers’ bottom lines.
"While we’ve certainly seen spending in store return to normal in many parts of the country, it’s now the time to invest in the digital economy.
"Particularly coupled with incentives for entrepreneurs, investment in digital skills is a great move for retail.
"Many entrepreneurs, a significant percentage of these being women, start their businesses with their laptop.
"Investing in digital skills and infrastructure will give more retailers the opportunity to start, and boost, their business," she said.
However, while these measures will work to help fashion retailers, the organisations have recognised that retailers in the aviation and tourism sectors are still struggling with borders closed.
"The retail sector as a whole is tracking well, but there are two cohorts we remain deeply concerned about.
"Travel retailers, like duty free shops and stores located in airports, have been severely impacted by international border closures, along with retailers in CBD locations, especially small businesses in both Melbourne and Sydney, where foot traffic is still catastrophically low," Zahra said.
"We need to work on getting people back into these [tourist] areas," Lamb added.
"Small and family owned businesses are the cornerstone of the hospitality and tourism sector, and it’s crucial they receive support to ensure they’re still here, ready to do business, when borders reopen," she said.
Meanwhile, small business ombudsman Bruce Billson said that the $134 million deregulation agenda will make it easier for businesses to comply with award requirements.
"Small business owners are hard-working, time-poor and don’t have the systems or resources needed to deal with onerous compliance requirements.
"Research shows a small business hiring its first worker can spend up to 18 hours getting their head around awards, pay rates, tax, OH&S and record-keeping obligations.
"This government investment in ‘regtech’ is a positive step towards making it easier for small businesses to pay wages and entitlements correctly and on time, recognising how much they value their team," he said.
"Most people outside the sector think we’re exaggerating when we say that since 2013 retailers have had to deal with nearly 14,000 different rates of pay depending on variables such as whether the employee is casual or permanent, their age, their classification and the times at which the work is performed," Lamb added.
"This number easily doubles if you consider shift workers, baking production employees, apprentices and those working under the supported wage system.
"The NRA applauds the Federal Government for recognising the complexity of the system, and taking steps to improve compliance," she said.
For a snapshot of Budget measures that will impact small businesses, access the ASBFEO's Budget Snapshot here.