2 minute read
CEO welcome
Welcome to the June edition of MGA’s Independent Retailer magazine.
The past month or so has been a roller coaster ride for MGA supermarket, liquor and timber and hardware members around Australia, as they tried to ascertain what the result of the federal election held on Saturday 18 May, was going to deliver for their businesses and families.
I can say firsthand that our members were living in fear of a potential Labor government and the impacts of many Labor Party business policies on the sustainability and viability of their businesses. Members deemed these business policies as antifamily enterprise and private business, that would drive higher costs and uncertainty to do business.
The threat of higher taxes on family trusts, increased capital gains tax, reduction in negative gearing provisions, abolition of franking credits, Sunday penalty rates (200%) being reinstated and increasing taxes on consumers all have a negative effect on business confidence, sales and costs of doing business.
The drop in business confidence and uncertainty for the future during the lead up to election day was palpable.
These fears our members were holding can now be put aside and we now have the opportunity to once again look forward to taking advantage of the strong Australian economy to grow our businesses with more certainty and confidence.
Who would have thought that against all odds, according to the election polls leading up to the election day, that the Coalition would win the hearts and minds of voters and not only retain power but slightly grow their presence in the next term of the federal government?
As with all state and federal governments, regardless of which party, MGA & MGA TMA looks forward to working closely with all sides to help further grow the presence and prosperity of Australian family enterprises and private businesses within the supermarket, liquor and timber and hardware sectors.
There are currently, many matters being addressed by MGA around the states and at a federal level including; the National Wage review, federal tobacco laws and regulations, Container Deposit Scheme in WA, new tobacco regulations in WA, local producers project in Qld, planning and zoning matters in Victoria, trading hours issues, payroll tax discussions and so the list goes on.
The Fair Work Commission (FWC) has announced the FY2020 wage increases that will affect the General Retail Industry Award (GRA). As from the first full pay period after 1 July 2019, wages under the GRA will increase by 3%. MGA’s recommendation in its submission to the FWC was for no more than a 1.2% increase after our industry sector experienced a collective 6.7% wage increase in the past 2 years, as well as, a 25% increase in casual employee rates on Saturdays, overtime payable to casual employees pre7.00am and late nights that became effective this year.
The key economic performance indicators for the Australian economy are strong with economic growth running at 2.3%, the cash interest rate at 1.5%, the inflation rate is at 1.3%, the Australian Dollar vs the $US is US$ 0.69 and unemployment levels are hovering at a very low 5%.
If our members wish to train and develop your staff, we highly recommend you take advantage of MGA’s training modules and courses. These courses have been designed and developed by experienced retailers and trainers at MGA. See www.mga.asn.au for more details.
Until next edition – good trading!
