BUDGET CONCERNS FOR RETAIL INDUSTRY
Written on the 14 May 2014
TAX increases in the Federal Budget could adversely impact consumer spending in the retail industry, according to the Australian Retailers Association (ARA).
Executive director Russell Zimmerman (pictured) says the ARA supports the government’s plan to control expenditure, but is concerned some aspects may impair consumer confidence – which has slowly been on the rise.“We are only just beginning to see retail and the services sector regain momentum after many years in the doldrums.
“It would be a travesty if these tax increases impacted on that recovery to the sector and the services economy,” he says.It follows the government’s announcement overnight about an incoming debt levy for high-income earners.
Zimmerman says it’s not all bad news for retailers, lauding the abolition of the carbon tax.“The ARA has long campaigned for the removal of this unnecessary cost burden to retailers and consumers and we are confident the decision to finally remove the carbon tax will be music to the ears of business owners.”
He says the decision to remove $1 billion in red tape each year is another positive note, allowing businesses to “get on with the job”.“What we need to see now is every effort made not to harm consumer confidence further with a clear long-term plan from government to support consumers through future tax cuts and short-term support from agencies such as the RBA.”