Today’s carbon tax announcement by the Australian Government has huge importance for Queen Victoria Market Traders.
The importance is not so much in the content (important as that is) as in the response from consumers. Experts, including Reserve Bank of Australia officials have highlighted the impact of hip pocket affecting measures like interest rates and taxes on consumer’s willingness to spend, particularly on discretionary items. The current poor state of retailing in Australia is linked largely with consumer attitudes.
The mood of the electorate (consumers) is critical going forward and we must assume the Government is aware of that given the sweeteners for pensioners and the exclusion of the carbon tax on petrol. Public reaction to today’s historical announcement will be watched with great interest.