The Australian Retailers Association (ARA) has laid caution on a new Small Business Strategy as part of the recently released South Australian state budget for 2023.
ARA CEO Paul Zahra welcomed the $6.5 million Small Business Strategy “in principle”, but said it will likely need more funding to make any significant difference.
“The implementation of a Small Business Strategy is an important measure, but with approximately 143,000 small businesses trading in South Australia, we would ideally like to see this $6.5 million package expanded,” Zahra said.
“With rising rent, utilities, labour, supply chain costs and materials – we’re looking at one of the most challenging years for small business in recent memory.”
The ARA welcomed other measures, including the $254.4 million energy bill relief program and a further $471.3 million in cost-of-living relief, saying this should provide necessary economic stimulation.
“Cost-of-living is the biggest issue for all Australians – and South Australians are no exception; so, it’s great to see the budget providing much-needed relief,” Zahra said.
“We’re also pleased that approximately 86,000 small businesses will be eligible to share in rebates as part of the government’s Energy Bill Relief plan.
“Energy costs are one of the biggest expenses for South Australian retailers so any measure that reduces these costs for small business is good for business.”
South Australian Treasurer Stephen Mullighan said the $254 million energy bill relief program includes a rebate of up to $500 on 2023-24 electricity bills available to 420,000 eligible households, and up to $650 available to a further 86 000 eligible small businesses.
Mullighan said that the SA labour market is breaking records, including its retail sector “bucking” the national trend with April figures the strongest in the nation.
“Both the Australian Bureau of Statistics and Business SA attribute these results to the extraordinary success of two new major events, the AFL Gather Round and LIV Golf,” Mullighan said.
“According to Tourism Research Australia, domestic overnight visitor expenditure in South Australia in March was up 35 per cent on the same month in 2022.
“Our state’s economy is now ranked second in the nation in the CommSec State of the States report.”
Mullighan said SA has seen the lowest-ever unemployment rate, the highest-ever number of people in work, and the highest participation rate “since monthly records commenced in 1978.”
“Our export figures have broken all records, and population growth is stronger with ongoing positive net interstate migration.”
Meanwhile, the ARA welcomed the SA government offering additional investment in law enforcement, supporting Australia-first legislation that will provide greater protections to retail workers against anti-social behaviour and attacks.