The major concern surrounds consumer confidence and the huge impact that confidence has on retail sales. The CEO of the ANRA, Margy Osmond, said “Retail sales have been gradually growing for eleven consecutive months and retailers are concerned that the Budget will reverse these gains and erode consumer confidence at a critical time,”
The ARA’s, Russell Zimmerman, said “We are only just beginning to see retail and the services sector regain momentum after many years in the doldrums. It would be a travesty if these tax increases impacted on that recovery to the sector and the services economy.”
John Winning, CEO of the Winning Group suggested that a surplus budget was needed for long term growth -".... there is a need to improve our deficit, to provide stability and stimulate Australia's economy for the longterm confidence of consumers and the success of retailers."
Further cuts in government red tape have been welcomed, and the incentives to employ over 50 year olds is expected to impact on retail employment prospects. The impacts of budget measures on consumer spending are yet to be realised and, like the Reserve Bank, we wait with interest.