The Labour government’s new federal budget has promised a host of relief measures to small businesses and retailers to curb the rising cost of living and inflationary pressures.
Australian Retailers Association CEO Paul Zahra said cost-of-living relief was “front of mind” for retailers and consumers alike.
“Australians are rightfully keeping a close eye on cost-of-living reprieve, but so too are retailers – with discretionary spending beginning to significantly soften in the wake of inflation and consecutive interest rate rises,” Zahra said.
To help small businesses bounce back from the current cost of living crisis, a $20,000 instant asset write-off has been introduced along with an energy bill relief and a Small Business Energy Incentive program to encourage investments.
Zahra said “alleviating” the cost-of-living pressures is a vital component of economic stimulation.
The budget’s made reforms to the Australian migration system, are “welcomed” by the retail community since it will ease labour and skills shortages.
“The red tape of Australia’s migration system and the barrier of expensive childcare are two leading drivers of high job vacancies,” Zahra said. “We are pleased to see the commitment to cut the cost of childcare for 1.2 million families – together these measures will have enormous benefits for retail and the broader economy.”
He flagged businesses need more support managing higher labour, leasing and supply chain costs as well as insurance.
Australian Food and Grocery Council (AFGC) CEO, Tanya Barden, said this year’s federal budget provides “much-needed” cost of living relief to businesses.
“The cost of living measures announced tonight recognise that higher levels of discretionary spending are essential drivers of growth,” Barden said.
The $310 million Small Business Energy Incentive, introduced in the budget, will assist small and medium food and grocery manufacturers invest in upgraded, energy-saving plants and equipment.
Barden described the incentive as a “sensible support” for essential industries that keep supermarket shelves stocked amidst fragile supply chains, rising input costs and subsidised foreign competitors.
This story first appeared on our sister publication Inside Retail
