The National Retail Association (NRA)’s executive director Gary Black says most retailers support the key decisions taken in last night’s budget because of the direct contribution they will make to stimulating spending in the economy.
“Tax cuts, pension increases and infrastructure spending will all enhance aggregate consumer spending and assist retailers in what, for many, remains a difficult and deteriorating trading environment.
“The retail sector is the largest employing sector in the Australian economy. Spending initiatives which enable retailers to remain viable or to grow their businesses represent one of the most important job preservation measures the government can take in the current economic environment,” he said.
One lost opportunity in the budget process was the decision not to support state governments to commence a process which will lead to the eventual abolition of payroll tax, said Black. NRA believes that a further stimulus package specifically designed to support the removal of payroll tax would be greatly beneficial to contain rising unemployment.