The Australian Retail Council has warned the Federal Government against backing the Greens’ reported push to remove the long-standing superannuation exemption for under-18 workers who work fewer than 30 hours a week, saying it comes just weeks after the Fair Work Commission’s junior pay rates decision and risks making it harder for young Australians to get their first job.
ARC Chief Executive Officer Chris Rodwell said retailers were already preparing for significantly higher labour costs following the Fair Work Commission’s decision to increase junior pay rates, with the latest proposal threatening to further increase the cost of employing young people.
“Retail has given millions of Australians their first job. Businesses invest significant time, money and resources training young people with little or no work experience,” he said.
“The Fair Work Commission has already made employing young people less competitive. We cannot afford to make it even more expensive.
“If governments keep increasing the cost of employing young people without anything to offset it, the reality is that some businesses will choose to employ more experienced workers who require less training and supervision. That doesn’t help teenagers looking for their first opportunity and it doesn’t help Australia’s future workforce.”
Mr Rodwell said the proposal was another example of an ever-increasing costs of doing business for an industry already under significant financial pressure.
“Young Australians are incredibly valuable members of the retail workforce. Many retailers already choose to pay superannuation to under-18 workers regardless of the legal requirement because they recognise the contribution these young employees make every day. The issue isn’t whether young people deserve to be valued. Small business simply can’t print more money. Every additional cost must be paid for somehow,” said Mr Rodwell.
“Retailers are about to absorb a 4.75 per cent wage increase, higher junior pay rates, Payday Super affecting cashflow, rising freight and fuel costs, escalating retail crime, the debit card surcharge ban and a growing mountain of regulation. Governments keep adding new costs, yet there are no productivity gains, no meaningful reduction in red tape and nothing to help businesses absorb them.”
Mr Rodwell said ASIC figures showed retail insolvencies were running almost 20 per cent higher than the same period last year, making retail one of the hardest hit major industries.
“Consumer confidence is still near record lows and retailers are doing everything they can to avoid passing higher costs on to customers,” he said.
“Businesses can only absorb so much before something has to give. That means higher prices, fewer jobs, less investment or more businesses closing their doors.
“Retail employs 1.4 million Australians. Small businesses are the backbone of our economy and the heart of communities right across the country.”
About us: Australian Retail Council (ARC) represents a $444 billion sector that employs 1.4 million Australians across metropolitan, regional, and remote communities – making retail the largest private sector employer in the country and a significant contributor to the Australian economy. Our membership spans the full spectrum of Australian retail, from family-owned small and independent retailers that make up 95% of our membership, through to our largest national and international retailers that employ thousands of Australians and support both metropolitan and regional communities every day.
