Business News Releases

ABS October 2014 retail trade figures at 0.4% increase – retailers hope pre-Christmas sales will make up for a tough year in business

THE Australian Retailers Association (ARA) said the seasonally adjusted rise (0.4 percent increase) in monthly retail trade figures (month-on-month) reported today by the ABS followed a 1.2 percent rise in September 2014.

While October’s month on month growth was modest, year on year retail growth rose 5.7 percent (seasonally adjusted, compared to October 2013) - a positive sign for the retail industry.

ARA Executive Director Russell Zimmerman said retail sales were fairly slow in October thanks to the unpredictable weather and the reluctance of consumers to get a head start on their Christmas shopping.

“In seasonally adjusted terms household goods retailing rose 1.4 percent. Other industries which experienced rises were food retailing (0.5%), department stores (2.0%), clothing, footwear and personal accessory retailing (1.1%) and other retailing (0.2%). Halloween may have played a helping hand in these categories achieving a bump in sales as the event is becoming a bigger treat for retailers every October with a growing demand for lollies, spooky costumes, decorations and pumpkins.

“In seasonally adjusted terms the states which displayed rises were New South Wales (0.7%), Queensland (0.4%), South Australia (1.2%), Western Australia (0.1%) and the Australian Capital Territory (0.4%). Victoria remained relatively unchanged (0.0%). Tasmania (-1.0%) and the Northern Territory (-0.4%) both experienced a fall in sales.

“The Australian Retail Index (delivered by BDO and Retail Express) reported that the end of October saw all sectors showing slight but positive growth results, with the exception of furniture which dropped 2.3 percent. This sector is not traditionally influenced by the Christmas rush as much as other retail sectors.

“October’s modest results are somewhat expected and it will be interesting to see whether November’s results show a much sharper spike in sales when pre-Christmas shopping gets into full swing.

“The ARA is confident that retailers will achieve the expected $45 billion in sales between 15 November and 24 December, and we look forward to confirming these statistics in the New Year,” Mr Zimmerman said. 

MONTHLY RETAIL GROWTH (September 2014 – October 2014 seasonally adjusted)

Department stores (2.0%), Household goods retailing (1.4%), Clothing, footwear and personal accessory retailing (1.1%), Food retailing (0.5%), Other retailing (0.2%) and Cafes, restaurants and takeaway food services (-2.1%). Total sales (0.4%).

South Australia (1.2%), New South Wales (0.7%), Australian Capital Territory (0.4%), Queensland (0.4%), Western Australia (0.1%), Victoria (0.0%), Tasmania (-1.0%) and Northern Territory (-0.4%). Total sales (0.4%).

YEAR-ON-YEAR RETAIL GROWTH (October 2013 – October 2014 seasonally adjusted)

Household goods retailing (11.5%), Cafes, restaurants and takeaway food services (7.1%), Food retailing (5.7%), Other retailing (2.8%), Clothing, footwear and personal accessory retailing (0.4%) and Department
stores (-0.2%). Total sales (5.7%).

New South Wales (9.8%), Victoria (6.0%), South Australia (4.8%), Tasmania (4.0%), Western Australia (2.6%), Queensland (1.9%), Australian Capital Territory (1.4%) and Northern Territory (1.1%). Total sales (5.7%).

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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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America seeks to abolish GST loophole while Australian retailers continue to suffer

THE Australian Retailers Association (ARA) urges all Australian state governments to stop playing politics and support the closing of the LVIT loophole following yesterday’s announcement that a coalition of American local and state government officials came together to insist on Congress levelling the tax playing field by passing the ‘Marketplace Fairness’ legislation.

The Marketplace Fairness Act (MFA) would bring sales taxes into the 21st century enabling local stores and online sellers to operate under the same rules.

The Act helps main street businesses by allowing local and state governments to collect already-owed taxes regardless of whether a purchase is made physically in a store, on the phone or online.

ARA Executive Director Russell Zimmerman said this announcement has re-ignited the GST debate and highlights the importance of Australia following suit.

“Australian retailers have been at a disadvantage for too long as the current system is outdated and does not reflect the realities of today’s marketplace," Mr Zimmerman said.

“Unfortunately, politics had got the better of the process in Western Australia (WA), and the blame does need to be levelled at the WA State Government which is refusing to allow changes to the GST unless it gets a bigger share of the GST pie.

“The WA Government must understand the impact this tax is having on its own local retailers. This loophole is costing thousands of retail jobs in Australia – a further 33, 000 jobs will be lost by 2015 in the discretionary retail sector, having already lost 80,000 jobs since 2007.

“The ARA will not give up the fight - we will be re-engaging with all key stakeholders to once again push the case to change this unfair tax arrangement at all levels of government. We will also be sure to target those governments not acting in the best interests of their local businesses,” Mr Zimmerman said.

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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.

ends

Steady cash rate supports $45b pre-Christmas retail sales

 

THE Reserve Bank of Australia’s (RBA) decision to keep the cash rate on hold at 2.5 percent will support the retail industry to achieve $45 billion in pre-Christmas sales, representing a 4.3 percent increase year on year.

Peak retail industry body the Australian Retailers Association (ARA)  Executive Director Russell Zimmerman said the current stability of interest rates has translated into a promising start to pre-Christmas trading.

“While retailers didn’t receive their Christmas wish of an interest rate cut today, the industry remains optimistic that the festive trading period is well and truly underway.

“With only three weeks until Santa arrives, foot traffic has increased in shopping precincts across Australia and retail tills are ringing.

“It seems the stable cash rate has encouraged consumers to let go of their purse strings a little earlier than usual this year, but in order for sales to continue building momentum as Christmas approaches (and for the retail industry to return to a growth of six percent) the Federal Government and RBA must do all that they can to ensure that retail trade is fully supported as consumers start their holiday shopping.

“This time last year the ARA forecast $42.2 billion would go through retail tills during the pre-Christmas trading period and this figure was later confirmed at an actual pre-Christmas spend of $43 billion. The ARA’s forecast was almost bang on, so it’s fairly safe to say the retail industry is optimistic for a cracker Christmas this year,” Mr Zimmerman said.

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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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VTIC congratulates Victorian Labor on its election victory

The Victoria Tourism Industry Council (VTIC) Chief Executive Dianne Smith has congratulated the Hon. Daniel Andrews MP, Leader of the Labor Party, and Victorian Labor on their election to government.

"On behalf of our members across the state we look forward to the implementation of the following commitments that will benefit the tourism and events industry," Ms Smith said.

These include:

- Funding for Sovereign Hill’s “Blood on the Southern Cross” experience.

- Support for the Ballarat Station precinct upgrade including proposed hotel and convention centre.

- Investment in upgrades to Geelong’s Simonds Stadium, Geelong Performing Arts Centre and St Kilda’s Palais Theatre.

- Support to further develop the Grampians Peaks Trail.

- Funding to grow Victoria’s wine industry through increased cellar door visitation.

- Commitment to widen the Tullamarine Freeway.

- Commitments to apprenticeships and training to support the creation of a well-trained, job-ready tourism workforce. 

"We urge the new government to make progress on this agenda as a priority, given its significance to the Victorian economy and wider business community," Ms Smith said.

"VTIC looks forward to working with the new government to ensure that Victoria’s tourism industry can continue to offer exceptional visitor experiences, create thousands more jobs and achieve the ambitious targets detailed in Victoria’s 2020 Tourism Strategy."

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The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s tourism and events industry, providing one united industry voice. Tourism and events are growth industries for Victoria and contribute $19.6 billion to the state economy each year and employ more than 200,000 people.

vtic.com.au  

VECCI’s Women in Business series: Tina Arena’s transformation

JOIN Australian music icon Tina Arena as she shares her personal story of perseverance, resilience and reinvention over an international music career that spans four decades. 

Hear how Tina has continually developed her skill-base, invested in her brand and broken into new markets to take advantage of opportunities in the ever-changing global entertainment industry.

Tina has built her career on challenging herself to step outside her comfort zone to lead by example and inspire a loyal following.

Learn how Tina’s experiences can help you charge confidently into the New Year.

VECCI’s Women in Business lunch series showcases talented and professionally successful women and gives Victoria’s business women the opportunity to learn from their inspirational stories.

WHERE & WHEN

Thursday 4 December 2014, 12.30pm

Palladium at Crown

Level 1, Crown Towers, 8 Whiteman Street, Southbank, Melbourne
 
TICKETING OPTIONS
VECCI Members
Individual $185
Table of 10 $1665
 
Non-members
Individual $210
Table of 10 $2025
 
VIP experience $295
Prices include GST.
 
Ticket enquiries: 8662 5333

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

vecci.org.au


 
  

VECCI congratulates Victorian Labor on its election to government

VECCI Chief Executive Mark Stone has congratulated Victorian Labor on its election to government.


Mr Stone said, "VECCI congratulates the Hon Daniel Andrews MP, Leader of the Labor Party, and Victorian Labor on their election to government.

"Many of Victorian Labor’s pre-election commitments are consistent with VECCI’s recommendations and we call on the incoming Labor Government to build on Victoria’s strengths with responsible economic management and pro-business policies over the next four years.

"In this context, we look forward to the progression of the plan to remove 50 level crossings and other measures that will create 100,000 jobs over two years. The Labor Government’s commitment to the metro rail tunnel construction, Port of Melbourne privatisation and Tullamarine Freeway widening is welcomed by business.

"So too are the strong commitments to apprenticeships and training, given their role in creating a job-ready workforce. It is important that clear timelines are established to undertake the promised review of the vocational education and training system.

"We also look forward to the implementation of commitments to boost Victoria’s international engagement through expanding the inbound and outbound trade missions program and the establishment of new government business offices in South America, Singapore and Turkey.

"This agenda must be progressed as a priority given its significance to the Victorian economy and wider business community," Mr Stone said.

"In keeping with VECCI’s pre-election agenda, we will urge the new government to lift the payroll tax threshold from $550,000 to $850,000, in order to keep Victorian business competitive and support new job creation.

"VECCI looks forward to working constructively with the Labor Government and supporting business to capitalise on opportunities for growth in 2015 and beyond."

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

vecci.org.au 

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BBQs, camping and outdoor leisure equipment sales to rise over 100 percent this Christmas - ARA

 

IT'S BEGINNING to look a lot like Christmas for outdoor leisure retailers with barbecues, camping and outdoor leisure equipment tipped to rise 135 percent in the lead up to Christmas.

New research by the Australian Retailers Association’s (ARA) and Roy Morgan looks at last year’s Christmas shopping period between November 2013 – January 2014, and reveals the categories showing the largest growth during this period (compared with the rest of the year) are as follows: barbecues, camping and outdoor leisure equipment (up 135 percent), perfume and aftershave (up 58 percent) and women’s dresses (up 54 percent). 

ARA Executive Director Russell Zimmerman said these results certainly reflect current consumer buying patterns, with shoppers not only starting to stock up on traditional best-selling gifts such as perfume, aftershave and clothing but also the latest barbecue and camping equipment.

“Australian’s have been born and bred to enjoy the great outdoors over summer and that includes heading away with the family on camping trips and regular social barbecues with friends. We’re expecting to see a lot of tents, picnic gear, high-quality outdoor furniture and other leisure-based gifts under Christmas trees this year. These items are often able to be enjoyed by the entire family, therefore providing great value for money for the penny-conscious shopper.

“The expected rise in sales of 135 percent is music to the ears of Australian outdoor leisure retailers who have been doing it extremely tough over winter.

“When comparing hottest Christmas items of 2013 with hottest Christmas items of 2012, there are a few notable trends that we can expect to see reflected in this year’s Christmas sales. Interestingly, women’s jumpers take the top spot with an increase in sales by over 40 percent year on year. Women’s sleepwear sales are also up significantly (36 percent) but are offset by falls in other women’s apparel categories including jeans (-43 percent), sportswear (-38 percent), socks (-29 percent) and coats (-27 percent).

Car care products will remain great stocking fillers (up 28 percent) as well as craft and hobby related products which are set to experience a jump in sales by 27 percent this Christmas,” Mr Zimmerman said.

Overall, ARA data shows that shoppers will spend a whopping $45 billion from 15 November until 24 December, representing a 4.3 percent gain on sales during the same period in 2013 ($43 billion).

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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

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Plain packaging proves only a burden to retailers as illegal tobacco use continues to rise

ILLEGAL tobacco use in Australia continues to grow with a new report revealing around one in every seven cigarettes consumed is illegal, exposing the fact that plain tobacco packaging has proved only a burden to retailers rather than encourage Australians to quit the habit.

Plain packaging has also lead to a shift from retailers who once regulated sales of legal product to an increasing amount of illegal unregulated sales.

The latest in a series of reports by KPMG LLP in the UK, Illicit Tobacco in Australia, shows that illegal tobacco use in the last 12 months has increased from 13.5% to 14.3% of total consumption.

Australian Retailers Association (ARA) Executive Director Russell Zimmerman said the change to plain packaging has been a waste of retailers’ time and resources.

“According to the report, had that tobacco been sold legally, the Australian Government would have received an additional $1.2 billion in tobacco excise. Instead of paying tax to the Australian Government, criminals are profiting from this illegal tobacco trade at the expense of local law-abiding retailers who could keep tobacco out of the hands of minors.

"The ARA has long argued the change to plain packaging was an unnecessary burden for small to medium retailers, and it is now further evident that this initiative has had absolutely no effect.

“We are very concerned that illegal tobacco products are swamping the market, and this has only been made worse by plain packaging which has seen product move out of well-regulated legal distribution through retailers.

“The ARA will be making the point to the government that action needs to be taken to address the illegal tobacco trade. The government must consider how ever increasing regulation - whether on cigarette packaging or tax - creates additional incentives for tobacco smugglers. It's not only in their best interests but also in the best interests of Australian businesses,” Mr Zimmerman said.

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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.

ENDS

World renowned Workplace Research Centre to make final contribution to IR debate

THE University of Sydney’s internationally respected Workplace Research Centre (WRC) is planning to make a final and significant contribution to the industrial relations debate with its last high powered symposium on this crucial element of national life.

Established as the Australian Centre for Industrial Relations Research and Training (ACIRRT) in 1991, the WRC will close at the end of 2014.

Prominent speakers at the symposium on 4 December 2014, will include the former President of the Australian Industrial Relations Commission, Geoffrey Guidice AO.

“The symposium will look at the role played by research in evaluating previous industrial relations reform as well as the future and explore how research can respond to new and emerging employment relations challenges,” said WRC Director, Professor John Buchanan.

The symposium will also feature:

  • Grant Belchamber, ACTU
  • Emeritus Professor Russell Lansbury, Inaugural ACIRRT director
  • Professor Karel Williams, University of Manchester (via videolink)
  • Professor Chris Warhurst, University of Warwick (via videolink)
  • Professor Barbara Pocock, University of South Australia
  • Professor John Buchanan, University of Sydney
  • Professor David Peetz, Griffith University
  • Professor Nigel Haworth, University of Auckland
  • Associate Professor Rae Cooper, University of Sydney

Further details are available on the WRC’s website: http://sydney.edu.au/business/workplaceresearch/conferences/symposium_2014/legacies_and_future_directions_for_ir_research

Date: 4 December, 2014

Time: 9am – 4.20 pm

Venue: The Darlington Centre, City Road, University of Sydney

Tourism well placed as both parties commit to industry growth this election

VICTORIA's peak tourism industry body today said that the industry is encouraged by the pre-election commitments from both major parties to grow tourism in 2015 and beyond.

"Support for key tourism infrastructure, the growth of cultural events and the development of industry skills is in keeping with our ongoing policy agenda and is welcomed by the Victoria Tourism Industry Council (VTIC)," said VTIC Chief Executive Dianne Smith.

Major commitments include:

Key infrastructure

- The Coalition’s decision to expand the Melbourne Convention and Exhibition Centre (MCEC), as well as to fund a feasibility study on a similar centre in Geelong.

"VTIC applauds the Coalition Government’s decision to expand MCEC, and urges Victorian Labor to echo this commitment for the significant benefit it will bring to Victoria’s business events and tourism sector,” said Ms Smith.

- Bipartisan support for the Tullamarine Freeway upgrade, which will improve reliability and cut travel times for visitors who rely on this crucial road. 

Attraction and experience marketing

- The Coalition’s funding commitment for the promotion of Victorian attractions and experiences to boost attendance from local, interstate and international visitors. International high growth markets such as China and South East Asia will be particularly targeted.

Workforce skill development

- Strong commitments to apprenticeships and training by both parties to support the creation of a well-trained, job-ready tourism workforce.

particularly supported is Victorian Labor’s commitment to reforming the vocational education and training system by improving VET regulation and undertaking a review of VET funding.

Cultural events and nature-based attractions

- Bipartisan support for the further development of the Grampians Peaks Trail to boost Victoria’s nature-based tourism credentials, and support for Sovereign Hill's Blood on the Southern Cross experience. 

"The Grampians Peaks Trail development will position Victoria as a key nature-based tourism destination, which will lead to significant job creation and economic benefit,” said Ms Smith.

- Victorian Labor’s commitment to investing in upgrading the iconic Palais Theatre and a Victorian Wine Tourism Strategy to grow regional tourism. 

- The Coalition’s pledge to create the Regional Live Music Strategy to boost medium sized events, its commitment to upgrade visitor facilities at Puffing Billy's Belgrave station and its continued support for the National Rhododendron Gardens in Olinda. 

Melbourne's reputation as the global sporting and cultural capital will also be further strengthened after government commitments to extend the Melbourne Grand Prix contract and host soccer's 2015 International Champions Cup Australia. Bipartisan support to upgrade the Junction Oval is also welcome.

Tourism could create nearly 9,000 additional jobs for Victoria over the next two years if the right policy settings are in place, according to VTIC research.

“As a growth sector in a rapidly changing economy, tourism has great job creation potential as it brings in visitors who spend money, which creates jobs and sustains communities,” said Ms Smith.

“We welcome both major parties’ commitments to progressing our key priorities this election.”

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The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s tourism and events industry, providing one united industry voice. Tourism and events are growth industries for Victoria and contribute $19.6 billion to the state economy each year and employ more than 200,000 people.

vtic.com.au

ENDS

ATO and Treasury return to tax disputes enquiry

THE Australian Taxation Office (ATO) and Treasury will re-appear before the House Tax and Revenue Committee tomorrow as part of its inquiry into tax disputes.

These agencies gave evidence to the first public hearing of the inquiry in July. Since then, the Committee has spoken to a wide range of taxpayers, tax agents, accountants, lawyers and professional associations.

Tomorrow’s hearing will allow the Tax Office and Treasury to respond to evidence received during the inquiry. Topics likely to be raised at the hearing include:

•the extent of independence when the ATO considers a taxpayer’s objection;
•the readiness of the ATO to engage with taxpayers during disputes;
•the robustness of ATO processes for findings of fraud and evasion, which remove the four and two-year time limits on amending assessments;
•how the general interest charge works during a dispute;
•the ATO’s performance indicators for disputes.

Committee chair John Alexander said the hearing will provide the committee with the opportunity to test some of the evidence and proposals that it received during the inquiry.

“We look forward to hearing the views and expertise of the ATO and the Treasury so the committee can make recommendations that allow the ATO to collect the revenue due, whilst demonstrating fairness and respect to taxpayers,” he said.

Public hearing
Wednesday 26 November 2014
Committee Room 2R1, Parliament House, Canberra

4:oopm   The Treasury and the Australian Taxation Office
5:30pm  Adjournment

The hearing will be broadcast live at: www.aph.gov.au/live.

For further information: please contact the committee secretariat by telephone 02 6277 4821, e-mail This email address is being protected from spambots. You need JavaScript enabled to view it., or visit the committee website http://www.aph.gov.au/taxrev.

Media release date: 25 November 2014

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