News of tax cuts has come at a great time for retailers after a very slow start to 2019, says the National Retail Association (NRA).
Millions of Australians are set to receive between $255 and $1,080 in tax cuts when they file their tax returns, as part of the Morrison government’s $158 billion five-year tax package.
NRA CEO Dominique Lamb said the announcement was great news for struggling retailers across the country.
“The tax cuts passed by the senate last night are the best present retailers could have asked for to kick off the new financial year,” Lamb said.
“Retail has had a very slow 2019, reinforced again yesterday by average ABS sales results for the month of May. This stimulus is therefore welcome news to retailers across the country who are battling difficult economic conditions.”
She urged consumers to splash their extra cash at the shops.
“Whether it is purchasing a few extra items during grocery shopping, splurging on some personal items or finally having enough cash to make a long-awaited purchase, we encourage shoppers to not be shy about spending this money.”
Of course many Australians may be inclined to hold on to their tax returns.
A survey of 1,000 adults by ME Bank found almost half (48 per cent) of Aussie tax payers are intending to save of invest their tax refund this financial year. Only 17 per cent said they were planning on spending it on discretionary items, and top of the wish lists were a holiday, clothes and shoes, and eating out and entertainment.
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