Australia's largest peak body for retail, the Australian Retailers Association (ARA) has welcomed the Federal Government's announcement of a bonus tax deduction to help small and medium sized retailers reduce costs of doing business, energy usage and greenhouse gas emissions.
ARA CEO Paul Zahra said the initiative will help small business reduce costs and emissions by improving energy efficiency and is one of a range of measures for SMBs recommended by the ARA in its pre-budget submission.
"We're pleased to see the Government respond to the needs of small business in this challenging year and hope this is one in a range of measures to support this vital part of our economy.
Mr Zahra said the program is in-line with the ARA's plan to help the sector achieve net-zero emissions by 2050.
"With energy costs continuing to increase at 5-10% per annum, this program will be the much-needed incentive that many small businesses need to make the investment in energy efficiency and electrification, to reduce their costs of doing business immediately. This is also a positive and practical step towards more sustainable operations, which is high on the agenda for retail.
"Unfortunately, many small retailers that suffered severe cashflow impacts through the pandemic are now navigating a host of fresh financial challenges. Cost-of-living pressures continue to impact consumer spending and there are higher costs of doing business as well as debt repayments falling due for some small retailers," he said.
"The health of the Australian retail sector impacts all Australians. The sector directly employs one in ten Australians and is dominated by small to medium size businesses, many of them family owned and operated. Retail services and offerings also help to improve the lifestyle, wellbeing and vitality of Australian communities," said Mr Zahra.
