The Australian Retail Council (ARC) has welcomed the Federal Treasurer’s announcement that the Australian Taxation Office (ATO) will provide temporary relief for small businesses impacted by fuel supply disruptions, as retailers face mounting cost pressures.
ARC CEO Chris Rodwell said the measures will support small businesses navigating an increasingly volatile trading environment.
“The ATO’s approach recognises the cash flow pressures many small retailers are facing right now,” Mr Rodwell said. “More flexible payment arrangements and a pause on compliance activity will provide immediate breathing room for businesses under significant strain.”
ARC’s latest industry data highlights the growing impact of fuel and supply chain pressures on small retailers.
“More than three in five retailers (61%) have been seeking tax relief because of the impacts of the conflict in the Middle East. This announcement, alongside the recent decisions on fuel security and the temporary reduction in fuel excise, will give some relief,” said Mr Rodwell.
“Even so, pressures remain for retailers that go directly to employment and business viability. Almost six in ten retailers told us they are reducing staff, so there are some tough decisions being made in stores on hiring, investment and day-to-day operations,” he said.
Mr Rodwell said while targeted relief measures are welcome, they must be part of a broader and sustained effort to address the cost-of-doing-business crisis.
“It’s critical that all efforts are made to boost productivity, find savings and lift the speed limit of the economy,” he said. “Retailers are operating on tight margins, while managing rising costs across fuel, freight, energy, wages, rent and compliance. Measures that improve productivity and reduce unnecessary regulatory burden will be critical to restoring confidence and supporting growth.”
Mr Rodwell said the extension of the Small Business Responsible Lending obligation exemption is also a positive step, helping to ensure small businesses can continue to access finance without additional delay or complexity. Around one in five retailers (22%) cited loan provisions as a priority area for support.
“Access to timely and affordable finance is important, particularly in periods of economic and supply chain disruption. Small businesses right now need flexibility that will help them manage short-term shocks and continue operating,” said Mr Rodwell.