Federal Budget economic recovery for retailers

The National Retail Association (NRA) has praised the Federal Budget announced by Treasurer Josh Frydenberg, claiming it provides numerous measures that will offer urgent relief to struggling retailers.

NRA CEO Dominique Lamb said measures aimed at boosting consumer spending and encouraging business investment had been items long advocated for by the NRA.

“The Budget announced last night takes key steps towards helping Australian retailers navigate the greatest economic crisis since the Great Depression,” Ms Lamb said.

“Bringing forward and backdating tax cuts for low and middle-income earners will mean that everyday Australians will now have more money in their hip pocket to spend at the shops. The need to restore consumer confidence was vital, particularly as we head into Christmas, and these tax breaks will go a long way to achieving that.

“The NRA has been advocating for the continuation and expansion of the instant asset write-off since before COVID-19 came along. Local cafes, family-owned restaurants and small clothing shops to name just a few will now be able to make investments in their business that would otherwise be unaffordable.

“We also support the wage subsidy for any business that employs a worker aged below 35 who is currently on JobSeeker. Not only will this help get people back into work, it will also ensure that businesses are adequately staffed while they navigate the first recession in 30 years.”

Ms Lamb said the timing of the Budget measures couldn’t be better, with the retail sector about to head into its busiest time of the year.

“Last week’s ABS retail trade report for August showed a decline in retail sales of 4 per cent nationwide.

Christmas is not only the busiest time of year for retailers, it’s also the most important. Many small businesses rely on a bumper holiday harvest to survive leaner times of the year so the last thing any of them need is for consumer spending to drop between now and Christmas.”


Budget 2020-21 Factsheets and Resources