Last week's retail trade figures released by the Australian Bureau of Statistics show the stimulus measures contained in the May Federal Budget hit the right spot, the National Retail Association said.

NRA Chief Executive Officer Trevor Evans said the 0.7 per cent seasonally adjusted increase in retail trade for June showed the Budget had sparked the necessary confidence among consumers and business buyers. 

The result follows a 0.4 per cent increase in May, with anecdotal evidence from retailers suggesting spending lifted noticeably in the two weeks after the Budget was handed down.

“It’s pleasing to see that the measures included in the Budget, particularly the $20,000 instant write-off of purchases for small businesses, have prompted the right response.

“We would expect to see these kinds of results for June each year until 2017, when the budget measures are scheduled to come to an end.”

The ABS reported increases in household goods retailing (2.2 per cent), other retailing (2.0 per cent) and cafes, restaurants and takeaway food services (1.2 per cent) in seasonally adjusted terms.  It found there were falls in clothing, footwear and personal accessory retailing (-1.4 per cent), food retailing (-0.1 per cent) and department stores (-0.1 per cent).

New South Wales continued to be the strongest performing state with a 1.0 per cent increase in turnover for the month, followed by Victoria (0.8 per cent), South Australia (0.8 per cent), Queensland (0.2 per cent), Western Australia (0.2 per cent), the Northern Territory (0.8 per cent) and the Australian Capital Territory (0.2 per cent). Tasmania (0.0 per cent) was relatively unchanged.

Online retail turnover contributed 3.3 per cent to total retail turnover in original terms.

The NRA is Australia's largest and most diverse retail industry organisation, and has been representing the interests of the retail, fast food and broader service sector for almost 100 years.