The Coalition’s proposed permanent $50,000 instant asset write-off would provide a meaningful boost for small retailers looking to invest, while commitments to simplify regulation and reduce compliance burden are encouraging signals for Australian businesses, the Australian Retail Council (ARC) said today.
As the peak body representing a retail sector employing more than 1.4 million Australians and contributing $444 billion to the economy, ARC has consistently called for permanent investment incentives and meaningful reductions in the cost and complexity of doing business.
Australian Retail Council Chief Economist and Chief Policy Officer Glenn Fahey said certainty and confidence were critical for retailers operating in a difficult trading environment.
“Retailers face intense pressure from weak consumer confidence, rising operating costs and ongoing uncertainty, so practical measures that support business investment are vital,” Mr Fahey said.
“A permanent $50,000 instant asset write-off for businesses with a turnover of less than $10 million would provide a stronger incentive for small and family retailers to invest in equipment, technology, security and operational improvements that can lift productivity and competitiveness.”
ARC has consistently called for permanent investment incentives because certainty matters when businesses are making long-term decisions about where and when to invest.
“One of the most encouraging outcomes from this Budget debate is both sides of politics backing a permanent instant asset write-off for small business,” Mr Fahey said.
“Retailers also support measures that help protect household purchasing power. The Coalition’s proposed income tax indexation would help reduce the impact of bracket creep over time and support discretionary spending.
“We also welcome the Opposition’s stated commitment to simplifying business regulation, because compliance costs remain a major burden for retailers.”
ARC’s research with Mandala has shown fragmented and inconsistent regulation across Australia acts as a major drag on productivity, costing billions for businesses and households.
“Retailers will be looking closely at the detail of any regulatory reform agenda, particularly measures that reduce duplication, complexity and the day-to-day cost of doing business,” said Mr Fahey.
“Retail is Australia’s largest private sector employer. Backing retailers to invest and grow means backing jobs, productivity and affordability for Australian households.”