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Wage review decision to adversely affect retailers and their employees

THE Australian Retailers Association (ARA) is concerned for the future of the retail industry after the Fair Work Commission has today awarded an unmanageable $16 a week increase in the minimum wage.

From 1 July 2015, the National Minimum Wage will increase to $656.92 per week, or $17.29 per hour.

Executive Director Russell Zimmerman said the ARA advocated before the tribunal a realistic and manageable minimum wage increase of no more than $5.70 per week for the retail sector.

“We are obviously concerned about the effects this decision will have on retailers.

“Retailers and young Australians have been reliant on pay rates to enable retail to bring on low-skilled young staff and increase their skill levels, reducing youth unemployment. Many small to medium enterprise retailers are reliant on a minimum wage workforce, and the announcement today to increase wages during this time of low consumer confidence and low growth will sadly result in further job losses and business closures – a very distressing truth for retailers.

“The minimum wage increase, coupled with weak trade figures and penalty rates, will only cause further damage to retailers who are struggling to keep their heads above water as it is. While interest rates are currently at a record low (with the Reserve Bank of Australia today deciding to keep rates on hold at 2.0 percent) and there is support from the recently released Federal Budget, the retail industry cannot simply keep up with excessive wage increases.

“The ACTU and SDA aren’t about creating jobs and opportunity but they now appear to be on a low productivity/high wages rampage which will only harm retailers and their employees,” Mr Zimmerman said. 

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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Inquiry into environmental register to commence public hearings

THE House of Representatives Standing Committee on the Environment will conduct public hearings in the week of 15 June 2015 as part of its inquiry into the Register of Environmental Organisations.

Public hearings will commence in Canberra, beginning with the Department of the Environment at 4 pm on 16 June 2015 and the Australian Charities and Not-for-profits Commission at 9.30 am on 18 June 2015. Further information will be available from the committee’s website closer to the date.

Submissions to the inquiry closed on 21 May 2015.

Committee Chair, Mr Alex Hawke MP, said he is pleased with the level of interest in the inquiry and appreciates that many organisations and individuals have taken the time to make a submission or share their views on the Register of Environmental Organisations.

“The response to the inquiry is evidence of the strong level of public interest in the work of not-for-profit environmental organisations. We look forward to, in the first instance, hearing from the government agencies involved in the administration of the sector, and we anticipate gathering evidence in a range of communities around Australia as the inquiry progresses over the coming months,” he said.

Further details about the inquiry, including submissions received and the terms of reference, can be found on the inquiry’s website at: http://www.aph.gov.au/reo.

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VECCI’s objection to the Fair Work Commission’s annual national minimum wage increase

VECCI Chief Executive Mark Stone said the organisation "acknowledges that those on the minimum wage deserve a pay rise but the 2.5 percent increase ($16 per week) is well above ACCI’s recommendation that any rise should not exceed $5.70 per week".

Mr Stone said, "The increase must be paid for by business, including small business, many of which are already doing it hard in the current economic environment. 

"Employment on-costs, including 9.5 percent superannuation, workers’ compensation and payroll tax, compound the impact of this increase and will be detrimental to small business cash flow and investment. 

"VECCI is disappointed that there was no deferral of the increase given the fragile economy and persistently high unemployment, especially among young people. Today’s decision takes effect from 1 July 2015," he said.

"Setting the minimum wage is a balancing act but the end result must not put existing and future jobs at risk.

"Higher rates of pay do no good if they are not linked to productivity growth and result in declining employment opportunities."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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Inquiry to kick start the engine of small business employment

BARRIERS to growth for private sector small businesses, including government laws and regulations, excessive red tape and compliance costs will be on the agenda tomorrow for the first public hearing of the Standing Committee on Education and Employment’s inquiry into small business employment in Australia.

The Australian Small Business Commissioner, who represents small business interests and concerns to the Australian Government, will appear before the committee with the discussion aimed at identifying the key issues preventing small businesses from creating employment opportunities.

Committee Chair, Ewen Jones MP, emphasised the importance of supporting small business job creation.

“Small business makes up over ninety five per cent of all businesses in Australia. By supporting this large and important group in creating jobs we can help reduce unemployment and improve the lives of Australians,” he said.

“The committee is determined to find solutions for problems facing small businesses and looks forward to meeting with the Commissioner to identify what they might be.”

Details of the hearing are as follows:

Date: Wednesday 03 June 2015
Time: 11:20 am – 12:45 pm
Venue: Committee Room 1R4, Parliament House, Canberra

Submissions to this inquiry are also welcome. For further information, including the full terms of reference and how to prepare a submission, please visit the committee’s website at www.aph.gov.au/SmallBusinessEmployment or contact the secretariat on (02) 6277 4573.

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Reinvention of the ATO on track

THE Tax and Revenue Committee today tabled its first report for its inquiry into the 2014 Australian Taxation Office (ATO) Annual Report.

The report outlines a range of topics including: the ATO’s relationship with taxpayers; the administration of the ATO; and compliance strategies. The report commends the ATO for its progress establishing its strategic direction and the steps it has taken, and continues to take, to ‘reinvent’ the client and staff experience to change the culture of the ATO.

Committee Chair, Bert van Manen MP, said that the ATO has made good progress towards achieving its goal of being valuable, relevant and trusted by the Australian people.

“I am particularly impressed with the ATO’s clear strategic direction and its commitment to meaningful performance indicators. A clear strategic direction and robust performance measurement and reporting are key elements of an efficient and transparent tax administration,” he said.

The committee commended the incorporation of modern technology into the ATO’s systems in its efforts to improve both the accuracy of tax information and the taxpayer experience. For example, the ATO is introducing Single Touch Payroll, Standard Business Reporting and no-touch tax returns. 

The Chair said that the taxation system relies on the Australian people’s trust that the system is fair and equitable.

“Non-compliance, such as demonstrated by those operating within the cash economy, robs the Australian people of much needed revenue. It also disadvantages honest and hard-working Australians who are doing the right thing. More must be done to tackle non-compliance,” Mr van Manen said.

The report listed a number of key areas that the committee will discuss at its next hearing for its second report into the 2014 ATO Annual report in late 2015.

The report can be found on the committee website: http://www.aph.gov.au/taxrev.

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