Newly-formed ARC sets out proposals for Federal Budget

The newly-formed Australian Retail Council (ARC) is calling for productivity reform, lower costs, and safer workplaces in the upcoming federal budget.

• Deliver productivity growth through national harmonisation.
• Modernise tax settings to lift investment and competitiveness.
• Reduce regulatory impacts that disproportionately affect small retailers.
• Improve worker safety by tackling organised retail crime and illicit tobacco.
• Enforce compliance against ultra-low-cost offshore retailers.
• Modernise workplace relations and invest in retail skills and training.
• Deliver nationally consistent packaging reform through Federal leadership.

“Retailers, like households, are under pressure from rising costs. They’re also dealing with escalating regulatory complexity and increasing safety risks,” said ARC CEO Chris Rodwell. “To add to this, they’re navigating rapid structural change, shifting consumer trends, seismic technological change, heightened geopolitical risk and a deteriorating fiscal and monetary policy environment.” 

Among the ARC’s proposals are calls to establish a Tax and Federation Reform Commission to align the company tax rate at 25 per cent. It also called for stronger enforcement of Australian consumer law.

“These challenges underline the need for ambitious economic reform that delivers for retailers and households. Sustainable cost of living relief depends on policy reform that reduces unnecessary cost and complexity across the economy,” Rodwell added. 

The ARC said that government failures are distorting competition and driving up costs. “With RBA interest rate uncertainty underscoring the importance and urgency of economic reform, ARC warns that fragmented regulation, rising compliance costs and unchecked illicit activity are undermining productivity and confidence.”

Rodwell added that the best way to help households is to lift productivity and stop unnecessary costs being baked into prices.  

“Retail employs 1.4 million Australians, and in making up almost one fifth of our gross domestic product, it sits at the centre of the economy,” he said

Productivity is being dragged down by regulatory fragmentation, rising compliance costs and growing safety risks in stores.

“At the same time, it’s critical that ultra-low-cost offshore retailers are held to the same Australian consumer, privacy and safety laws as local Australian retailers. We’re seeing other economies take action to ensure confidence in the system is not undermined, and competition is not distorted. The Federal Government and its agencies need to follow suit.” 

The post Newly-formed ARC sets out proposals for Federal Budget appeared first on Inside Retail Australia.