Australian retailers are applauding Opposition Leader Angus Taylor’s proposal of a $50,000 instant asset write-off this week.
In an announcement yesterday, Taylor said he wants to allow any business with a turnover of less than $10 million to immediately deduct assets of up to $50,000 – on a permanent basis.
The Australian Retail Council (ARC) responded by saying this would provide a meaningful boost for small retailers looking to invest.
The peak body also welcomed commitments by the coalition to simplify regulation and reduce compliance burden.
ARC chief economist and chief policy officer Glenn Fahey said certainty and confidence were critical for retailers operating in a difficult trading environment.
“Retailers face intense pressure from weak consumer confidence, rising operating costs and ongoing uncertainty, so practical measures that support business investment are vital,” Fahey said.
“A permanent $50,000 instant asset write-off for businesses with a turnover of less than $10 million would provide a stronger incentive for small and family retailers to invest in equipment, technology, security and operational improvements that can lift productivity and competitiveness."
According to the ARC, the peak body has consistently called for permanent investment incentives because certainty matters when businesses are making long-term decisions about where and when to invest.
“One of the most encouraging outcomes from this Budget debate is both sides of politics backing a permanent instant asset write-off for small business,” Fahey said.
“Retailers also support measures that help protect household purchasing power. The Coalition’s proposed income tax indexation would help reduce the impact of bracket creep over time and support discretionary spending.
“We also welcome the Opposition’s stated commitment to simplifying business regulation, because compliance costs remain a major burden for retailers.”
ARC’s research with Mandala has shown that fragmented and inconsistent regulation across Australia acts as a major drag on productivity, costing billions for businesses and households.
“Retailers will be looking closely at the detail of any regulatory reform agenda, particularly measures that reduce duplication, complexity and the day-to-day cost of doing business,” Fahey said.
“Retail is Australia’s largest private sector employer. Backing retailers to invest and grow means backing jobs, productivity and affordability for Australian households.”