Increased support for small to medium sized business (SMB), national harmonisation of retail industry regulations, federal government leadership on retail crime and strengthened supply chain infrastructure are among the priorities for retailers ahead of the upcoming federal budget.
In a joint pre-budget submission, peak retail bodies, the Australian Retailers Association (ARA) and National Retail Association (NRA), are urging the federal government to recognise the importance of Australia's $430 billion retail sector which employs 1.4 million Australians.
"With retail contributing almost one fifth of Australia's Gross Domestic Product, it's clear we can't have an economic recovery without a retail recovery," said ARA Chief Industry Affairs Officer Fleur Brown.
"The past few years have been immensely challenging for retail – from the ongoing impacts of the pandemic and supply chain disruptions to steep interest rates, rising business costs and an intense retail crime wave. We have seen the toll of this unfortunately on our workforces and businesses with too many retail businesses struggling or facing near collapse."
The ARA and NRA are advocating for government focus across three key pillars; Embrace a Growth Mindset; Grow the Retail Workforce; and Collaborate on Community Outcomes.
"We are in a uniquely competitive landscape, with technology driving global competition at a pace never seen before. These goals are about helping retailers small and large compete and contribute to our growing Australian retail sector, strengthening the retail workforce, and shaping community outcomes that benefit all Australians," Ms Brown said.
"With this in mind, key priorities for retailers include eliminating red tape and streamlining regulatory process, securing financial support and tax exemptions for small to medium size businesses, ensuring retail crime is addressed, and improving access to careers in retail."
National Retail Association Interim CEO Lindsay Carroll says the budget is a chance for the federal government to bolster the sector after a challenging year.
"This will be the Government's final budget before the federal election, and we hope retailers receive a leg up after withstanding record lows in consumer spending and sky-high operating costs," Ms Carroll said.
"Retail is an ever-changing landscape, and the challenges from the last few years have no doubt left quite a few retailers on the backfoot.
"Small businesses, the backbone of our economy, are especially in need of a boost so they can catch up to their competitors.
"Low inflation figures mean the government is well-positioned to invest in the growth of the retail sector. Investing in these priorities will increase productivity, attract investment and promote innovative capabilities in retail," she said.
The ARA and NRA are advocating for the following:
Embrace a Growth Mindset
- Reduce Red Tape: Create a taskforce to eliminate redundant regulations and streamline compliance.
- Simplify Regulations: Harmonise national rules on payroll taxes, retail leasing, environmental compliance, and workplace safety.
- Lower Tax for SMB Businesses: Expand the 25% small business tax rate to businesses earning up to $250M annually.
- Broaden the Small Business definition: Increase the small business threshold in the Fair Work Act to 25 employees,
- Boost Business Investment: Make the Instant Asset Write Off (IAW) tax incentive a permanent measure.
- Support Mental Health: Fund early intervention programs for small business owners.
- Address the Digital Divide: Investment for SMBs to close gap between larger, more digitally advanced businesses.
- AI Adoption: Launch a National AI Strategy to promote responsible and efficient use of AI.
- Responsible Sourcing Practices: Develop shared tools for SMBs, promote transparency and strengthen education and training.
- Public Health Outcomes in Advertising: The government should collaborate with industry and community stakeholders to harmonise food classification systems.
Grow the Retail Workforce
- Workplace Education: Collaborate with the government on compliance education for businesses.
- Retail as a Carer: Reposition retail as a carer by channelling more funds to private Registered Training Organisations for flexible retail training.
- Workforce Participation: Create pathways for underrepresented groups, including aged pensioners, refugees, and people with disabilities.
- Incentivise Training: Reintroduce financial rewards for completing Certificates III and IV.
- Women's Economic Security: Address the superannuation gap through extended parental leave and childcare support.
- Inclusive workplaces: Address physical and systemic barriers in the workplace
Collaborate on Community Outcomes
- Tackle Retail Crime: Invest in crime prevention, including a centralised reporting system and technology to combat theft.
- Strengthen Supply Chains: Invest in freight infrastructure, address regulatory inconsistencies, and enhance resilience to disruptions, ensuring reliable and cost-effective delivery of goods to businesses and consumers.
- Improve Labelling Standards: Promote national consistency on labelling to promote healthier choices.
- Transition to a low-carbon economy: The creation of a national energy policy to unify energy schemes and minimise duplication.
- Drive freight decarbonisation: Address inadequate freight infrastructure and high costs and clarify government direction on transition pathways.
- Circular economy: Prioritise a National Waste Strategy and expand recycling infrastructure in regional areas.
- Empower First Nations Businesses: Expand grants, loans, and procurement opportunities and reduce costs for goods in remote communities.
The ARA's full federal budget submission can be accessed here.
