The National Retail Association (NRA) has today commended Federal Treasurer Scott Morrison for recognising the important role small to medium businesses play when it comes to creating jobs for Australians into the future.
NRA Industry and Data Analyst Cameron Meiklejohn said, given the high proportion of SMEs within the retail sector, the proposed business tax cuts outlined in last night’s budget would provide a more supportive business environment for retail 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,” Mr Meiklejohn said.
“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 Australians,” Mr Meiklejohn said.
The NRA has also welcomed the proposed move to lift the upper limit for the middle-income tax bracket from $80,000 to $87,000, which would put an additional $315 a year into middle-income earners’ pockets.
“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,” he said.
Mr Meiklejohn did note however that some changes are likely to take considerable time to implement, with some businesses having to wait some time to see the benefits of these changes.
Cameron Meiklejohn is available for interviews. Please phone the SAS Group on 07 3221 9223 or 0447755893.