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GOVERNMENT BUDGETS FOR ECONOMIC RECOVERY Industry bodies say the 2021 federal budget, aimed at maintaining the momentum of Australia’s economic recovery, contains plans that are a step in the right direction, with retailers, manufacturers and small business set to benefit from key measures. Tax measures to boost spending Tax cuts for low- and middle-income earners will help ensure there’s more money in people’s pockets to support retail spending and create more jobs, says National Retail Association (NRA) CEO Dominique Lamb. She welcomed the measures, which she says are aimed at boosting customer spending and encouraging business investment. “Everyday Australians will now have more disposable income to spend at the shops, providing an adrenaline boost to retailers’ bottom lines,” she said. Additionally, a 12-month extension to the temporary full expensing measures until 30 June 2023 and a one-year extension of the temporary loss carry- back will allow businesses to invest in their future, Ms Lamb says. “Local cafes, family-owned restaurants and small clothing shops, to name just a few, will now be able to make investments in their business that would otherwise be unaffordable,” she said. Simplifying industrial relations The government will spend $134 million over four years on its deregulation agenda, including investing in regulatory technology to help smaller employers comply with modern awards, provide data on pay and conditions, and assist with accuracy in payroll software. The NRA applauded the government for recognising the complexity of the system and taking steps to improve compliance. “Most people outside the sector think we’re exaggerating when we say that, since 2013, retailers have had to deal with nearly 14,000 different rates of pay, depending on variables such as whether the employee is casual or permanent, their age, their classification and the times at which their work is performed,” Ms Lamb said. “This number easily doubles if you consider shift workers, baking production employees, apprentices and those working under the supported wage system.” Women a key focus Women are the backbone of the retail workforce, representing 68 per cent of sales assistants and 75 per cent of check-out operators, says Australian Retailers Association CEO Paul Zahra, who points to a clear focus on women in this year’s budget, with additional funding for women’s health and domestic violence programs. “The $1.7 billion childcare package is also significant,” he said. “This will provide more choice for working mothers and also puts more cash into the family budget each week, which are good outcomes for Australian families, the retail sector and the broader economy.” The government will also remove the current $450 per month minimum income threshold, under which employees don’t have to be paid the superannuation guarantee by their employer. This measure is aimed at improving equity in the superannuation system by expanding the guarantee coverage for cohorts with lower incomes, Mr Zahra says. “The Retirement Income Review estimated that around 300,000 individuals would receive additional superannuation guarantee payments each month, 63 per cent of whom are women.” Digital economy The government allocated $1.2 billion to the Digital Economy Strategy, which Mr Zahra says is an important step towards boosting productivity and securing future prosperity. The investment, he adds, will also support employment growth as future skills in retail become more technology and science based. “Consumers are now expecting retailers to ‘meet them where they are’, through consistent, seamless, omnichannel interactions,” he said, “and that involves businesses having a clear and dedicated focus on digital.” Mr Zahra says the migration to online shopping, which was accelerated by people working from home during the pandemic, is a permanent one. “It’s part of an acceleration of trends we’ve seen over the past 12 months, and that will continue to evolve in the years and decades to come,” he said. “It’s important that businesses, particularly small business, have the skills and knowledge they need to keep up with the rapid rate of innovation and new and emerging consumer trends.” Skills focus to benefit manufacturing The Australian Food & Grocery Council (AFGC) has welcomed the government’s focus on creating jobs and supporting skills development. AFGC CEO Tanya Barden says policies that support investment in new skills and capital equipment have the potential to bring about a structural reinvigoration of Australian food and grocery manufacturing. This would also position it to be a powerhouse for innovation, employment and export growth, she adds. “I’m pleased to see a budget that backs business growth with an extension of the temporary full expensing (instant asset write-off) for a year,” she said. “However, we ask that the government continues to look at expanding this further, so that businesses with long- held assets in Australia can access this incentive.” Ms Barden has also welcomed the Digital Economy Strategy. “Skills such as robotics, virtual reality, 3D printing, AI and predictive analytics are all advanced skills that we need to match our growing capabilities,” she said. “Other measures, including extension of the JobTrainer program and boosting apprenticeships, will also support the skills growth that our industry needs to continue to grow, innovate and reach into new export markets.” Paving the way for small business Small Business and Family Enterprise Ombudsman Bruce Billson says the measures are a clear acknowledgement that small and family businesses are central to the nation’s economic recovery and future prosperity. “These measures will support small and family businesses as they help lead our national economic recovery and play a critical role in securing our future prosperity," he said. MAY/JUN, 2021 CONVENIENCE WORLD 3 NEWS