A change in the definition of a small business and a concerted effort to address retail crime are among the issues peak retail bodies want the Federal Government to address.
In a pre-Budget submission, the Australian Retailers Association (ARA) and National Retail Association (NRA), detailed more than 20 initiatives, centred around three pillars of growth, workforce and community.
Among the suggestions was a call to Increase the small business threshold in the Fair Work Act to 25 employees, up from the current 15 and invest in crime prevention, including a centralised reporting system and technology to combat theft.
ARA Chief Industry Affairs Officer Fleur Brown said the associations also called for increased support for small to medium sized business (SMB), national harmonisation of retail industry regulations and strengthened supply chain infrastructure.
Ms Brown said the Federal Government needed to recognise the importance of Australia’s $430 billion retail sector which employed 1.4 million people.
“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,” she said.
“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.”
Ms Brown said the sector was in a uniquely competitive landscape, with technology driving global competition at a pace never seen before.
“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.”
The ARA and NRA are advocating for the following:
Growth
- 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 percent 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.
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.
Community
- 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.
