Report on cost of living highlights need for retail tenancy reform

Peak retail industry body the Australian Retailers Association said a new report today showing government regulations have made Australia one of the most expensive countries for shoppers highlighted the need for retail tenancy reform in an environment of increased global competition.

ARA Executive Director Russell Zimmerman said the research report for the Centre of Independent Studies confirmed the reality of retail issues highlighted in last Friday’s Government response to the Productivity Commission (PC) Inquiry into the Economic Structure and Performance of the Australian retail sector.

“One of the major hurdles for retailers is a retail tenancy framework which skews lease negotiations in favour of landlords and drives up rental costs for retailers who ultimately have to pass these on to the consumer.

“The PC report highlighted the need to review planning and zoning restrictions in order to balance the power between retailers and landlords at the negotiation table.

“Australian retailers are also in a globally competitive environment while facing some of the highest regulatory and business costs in the world such as rents, wage bills, tax/duty burden and utilities.

“The Modern Award Review in 2012 will be a chance for retailers to lobby for contemporary wage and penalty rate structures to ensure they’re able to employ people to keep stores open and meet the demands of the modern consumer.

“The ARA is calling for a reduction of the Low Value Imports Threshold (LVIT) in order to level the playing field for retailers competing with their overseas counterparts, which is a must for retailers competing on a global scale.

“The reality of government regulations and the costs associated with regulatory burden is retailers either pass these costs onto their consumers or they close their doors, as many retailers have been forced to do over the past twelve months.

“The ARA is urging government to do its bit not to increase the cost of living and retail price pressures through additional taxes and charges as federal and state budget considerations commence in the New Year,” Zimmerman said.

“The ARA looks forward to working with the new Ministry and the Retail Council of Australia to achieve greater productivity in the retail sector, which will in turn benefit consumers at the till and hopefully keep the cost of living at a manageable level for Australians,” Zimmerman said.
For over 100 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia’s $240 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Fair Work (Registered Organisations) Act 2009 and with a range of member services including policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.
-ends- For interview opportunities with ARA Executive Director Russell Zimmerman
contact: Andie McMaster, Media and Communication Officer T: 0408 613 178 E: media@retail.org.au

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