Drought, bushfires and now the Corona virus, the Aussie retail industry hasn’t had a great start to 2020 and the national Retail Association (NRA) believes urgent action is needed.
While the ABS figures for November and December are encouraging at 0.9 and 0.5 per cent increase in retail sales respectivly, Australian retail is currently dealing with an unprecedented set of challenges. The full impact from the recent outbreak of the Coronavirus is yet to be fully felt and it follows a summer of devastating drought and bushfires, as well as a flat economy more generally.
The association has released a blueprint designed to tackle the challenges confronting the sector and set Australian retail on course for recovery.
The NRA is advocating the following: 12-month payroll tax ‘holiday’; Annual Wage Review exemption for bushfire and Coronavirus affected communities; funding for financial education assistance; instant asset write-off; and Safe Retail Precincts program extended to regional areas.
NRA CEO Dominique Lamb admits there is no silver bullet, however, the suggested measures would greatly assist in getting the sector back on track.
“Coronavirus and its impact on retail is just the latest challenge to face the sector, following a summer of devastating drought and bushfires, as well as a flat economy more generally,” she explains.
“The NRA is calling on all state governments to provide a temporary 12-month payroll tax ‘holiday’ to provide immediate financial relief to relevant businesses so that they can hire more staff and boost productivity.
“We’re advocating that businesses that have been directly impacted by the devastating bushfires and the outbreak of the Coronavirus be exempt from any changes emanating from the Annual Wage Review.
“The NRA is also urging the Federal Government to invest in a financial education assistance program to both engage and teach new small business owners on how navigate the financial challenges of running a business.
The instant asset write-off has been an overwhelming success, however, it remains a year-by-year proposition in the Federal Budget. By elevating the scheme to a permanent status, the government would be providing greater certainty to SMEs to plan asset investments over the long term, adds Lamb.
“The Safe Retail Precincts program, run by the NRA in conjunction with the Federal Government, has been highly successful in metropolitan areas in safeguarding shopping centres from threats such as crime and severe weather events. Extending the program to regional areas will assist in making a retail business in those communities more attractive, safer and affordable.”
Visit nra.net.au for a full copy of the Blueprint for Retail Recovery.
