RETAIL stores are preparing for an influx of shoppers over the next week, as Aussies hunt for the perfect gift to give to mum this Mother’s Day, May 8, according to the Australian Retailers Association (ARA).

The ARA estimates Australians will spend around $2 billion in celebration of Mother’s Day this year. Of this, flowers will account for $200 million, while dining out will account for the lion’s share at more than $300 million.

Russell Zimmerman, ARA Executive Director, said Mother’s Day is one of Australia’s biggest spending occasions, second only to Christmas.

“Mother’s Day has always been a big gift giving opportunity, with most Aussies touched by the day in some way, whether it be their own mother, the mother of their children, or grandmother,” said Mr Zimmerman.

“As a result, some retail categories are likely to see a much-needed lift in sales as mums around Australia are spoiled by their families.”

Categories expected to pick up extra sales in the lead up to Mother’s Day include florists, jewellery, newsagents (cards and wrapping), fashion stores, gift cards, experiences such as massages and spas, chocolates and confectionery, as well as restaurants and cafes.

“Mother’s Day lunches are hugely popular in Australia, with restaurants and cafes often booked out well in advance, while celebrating with the traditional Sunday roast at home will also lead to an increase in grocery purchases associated with home entertaining,” said Mr Zimmerman.

“With an election looming and consumer confidence traditionally declining in the lead up to elections, retailers will be using Mother’s Day as an opportunity to increase sales by offering tailored gifts, packages, or products that may have appeal to mums.”

About the Australian Retailers Association

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $293 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

For more information, visit www.retail.org.au or call 1300 368 041.

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AUSTRALIA’S resource employers welcome the Fair Work Commission (FWC) today clarifying that fly-in, fly-out (FIFO) workers should not receive extra pay for a period of rest and relaxation (R&R) which coincides with their notice period when they are demobilised from a job.

“A Full Bench of the FWC has today upheld the longstanding practice in the resource industry whereby employers can give employees notice of demobilisation that runs concurrently with a period of R&R,” explains AMMA legal director Amanda Mansini.
 
“Resource employers welcome the FWC confirming on appeal that R&R is akin to weekends and is not a special kind of leave. The erroneous implication of the original decision was that employees should be paid-out for their R&R time if it falls within notice of their demobilisation.”
 
AMMA intervened to support the appeal of Kentz Australia, which is performing major construction works on one of Australia’s most significant resource sector projects, the Ichthys LNG Project in Darwin.
 
The involvement of Australia’s national peak representative was critical given wider concerns that the original decision could have exposed other resources projects using this longstanding practice to multi-million dollar back-pay claims.
 
“The resource industry intervened based on widespread and ongoing concerns about the barrage of union claims being made for back pay based on the decision at first instance,” Ms Mansini continues.
 
“Any argument that R&R is an entitlement that must be paid-out is fundamentally flawed. It fails to take into account the unique work practices of large-scale remote resource projects and long standing practices when project work comes to an end.
 
“The union line being argued here is like expecting to be paid-out for the weekend when your job finishes on a Friday afternoon.
 
“That logic wouldn’t wash with employees working a standard Monday-Friday job, and thankfully it hasn’t washed with the Full Bench of the Fair Work Commission.”

www.amma.org.au

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WHATEVER policy measures come out of next week’s Federal Budget, they should be aimed at giving some respite to combat the threat to Australia’s AAA credit rating, by reducing the size of future budget deficits according to the Institute of Public Accountants (IPA).

“While we will continue to advocate for broad based reforms to our economy including taxation, we are not holding our breath in the short term,” said IPA chief executive officer, Andrew Conway.

“Reducing the size of future deficits will give the economy much needed breathing space to protect our current and much coveted credit rating status and time to continue the reform narrative that will drive Australia’s productivity and future growth.

“Our AAA sovereign credit rating is critical to our economy which relies on overseas capital. By keeping the budget deficits at bay, we keep the wolf from knocking on our door.

“By reducing our future deficits we have a better chance to keep our AAA rating intact which lowers the interest cost for all borrowers, including small businesses. This will give the Government some breathing space in the short term to tackle our long term structural problems, both in terms of revenue and expenditure, which are hurting productivity and our growth prospects.

“One measure being considered is a change to superannuation tax concessions for high income earners whilst providing a fairer system for low-income earners. Taxing high income tax concessions will reap billions which will narrow the size of future budget deficits ahead of structural reforms.

“While high-income earners pay over 45 per cent tax on every dollar they earn above $180,000, they only pay 15 per cent tax on money they divert to their superannuation; the same flat rate offered to low-income earners.

“We do caution, however, for governments not to lose sight of what our superannuation system is designed for; that is, to achieve better and sustainable retirement outcomes which will alleviate pressure on the need for future government paid pensions,” said Mr Conway.

publicaccountants.org.au

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THE Victorian Chamber of Commerce and Industry calls on the Andrews Government to take action in tomorrow’s 2016-17 Budget to boost business competitiveness, enhance liveability and create new jobs.

“The government has already said that increases in payroll tax revenue are expected to help generate surpluses totalling $9.2 billion over the next four years,” said Victorian Chamber chief executive Mark Stone.

“It is important that Victorian business benefits from this strong financial position.”

“The Victorian Chamber has consistently called on the government to increase the payroll tax threshold from $550,000 to $850,000 and the budget’s strong financial position shows there is no better time to do so,” said Mr Stone.

Mr Stone said an increase in the payroll tax threshold would drive employment and keep Victoria competitive against other states.

“Victorian business is looking to the Andrews Government to introduce practical measures that lower business costs and encourage jobs growth,” said Mr Stone.

“That’s why our pre-budget submission also calls for a reduction in the average WorkCover premium, cuts to red tape, new productivity enhancing infrastructure and a new international engagement strategy.”

Mr Stone said the Victorian Chamber had welcomed the government’s recent announcement of $1.46 billion to progress the $5.5 billion Western Distributor project.

“We also seek a commitment to commence the Metropolitan Ring Road from Greensborough to Ringwood in this term of government and funding for a range of vital regional road and rail projects to reduce congestion and grow Victoria’s liveability,” said Mr Stone.

“With historically low interest rates and the fast growing Asian region on our doorstep, the government should use the budget to strengthen international engagement opportunities for Victoria’s priority sectors.

“The release last week of the government’s new China strategy, Partnerships to Prosperity, is a good example of how businesses can be supported to become more internationally competitive and forge new global business opportunities.”

Mr Stone said at a time of consistently high youth unemployment, tomorrow’s budget must also introduce reforms to improve the quality of Victoria’s education and training system.

“This means strengthening employment pathways and boosting apprenticeships and traineeships in the trades and key sectors such as retail, hospitality and tourism,” said Mr Stone.

“Pro-business measures like these will give Victorian business the best chance to stay competitive. They must be a priority in tomorrow’s budget,” said Mr Stone.

For a copy of the Victorian Chamber’s pre-budget submission, visit the website.