Retail associations rejoice.

Company tax cuts for small to medium business and personal tax cuts for consumers in the Federal Budget has been welcomed by the Australian Retailers Association (ARA).

ARA Executive Director, Russell Zimmerman (pictured below), said the ARA commends the Government on making a path to reduce spending while supporting consumer and business confidence in a soft confidence pre-election environment.

“Introducing new measures to support business and delivering stimulus to the hip pocket on top of the RBA interest rate cut will be just what the doctor ordered for retail,” Zimmerman said.

“Corporate tax cuts will help small to medium businesses and the millions of people they employ. On top of this effort, the work to offset bracket creep through personal tax threshold changes will be a boost for consumer confidence and spending.

Scott Morrison

“While tax cuts for small and medium businesses are welcome, whoever wins the election needs to cut company tax across the board to make Australia more attractive to international and local investment. There is no question that Australia’s company tax rates are excessive by international standards,” he added.

Zimmerman noted that the retail sector had seen a slow start to the calendar year with a lack of confidence triggered by the global environment and the pending Federal election.

“The ARA and the retail industry have been looking to both the Government and opposition to put more money back in people’s pockets while remaining economically responsible.

“Superannuation changes should encourage low income earners to build a bigger nest egg while balancing higher income contributions in a responsible way.

“As Australia’s biggest private sector employer, retailers welcome the Government’s youth skills and jobs programme.

“What we need to see now is every effort made to strengthen our tax system to build consumer confidence with a clear long term plan from Government and Opposition following the election to support consumers and businesses alike,” Zimmerman said.

Meanwhile, the Retail Council said that the additional business tax measures were designed to support greater investment, job creation, drive innovation and boost productivity.

“Personal income tax cuts and company tax cuts for small and medium businesses should help business conditions and stimulate economic activity,” Retail Council Chairman, Peter Birtles said

“We are encouraged by the Government’s commitment to reduce the company tax rate for all businesses. However, we are disappointed that these measures will take a decade to implement – particularly as those companies that must wait the longest are the very companies that employ a high proportion of the workforce and make a significant contribution to economic output,” he added.