The National Retail Association (NRA) has welcomed the passage of the $158 billion, five-year tax package by the senate and has urged Australians to spend their tax relief at the shops.
Millions of workers will be eligible to receive an extra $1,080 when they file their tax returns.
NRA CEO Dominique Lamb said that it was great news for struggling retailers across the country.
“The tax cuts passed by the senate last night (July 4 2019) are the best present retailers could have asked for to kick off the new financial year,” Ms Lamb said.
“Retail has had a very slow 2019, reinforced again yesterday (July 4 2019) by average ABS sales results for the month of May (2019). This stimulus is therefore welcome news to retailers across the country who are battling difficult economic conditions.
“Although these tax cuts are no silver bullet, they certainly put money straight into the back pocket of millions of Australians and should result in a much-needed boost in retail spending.
“The latest interest rate cut by the RBA demonstrates the need to get shoppers spending more money and providing shoppers with more disposable income assists greatly in achieving this.”
Ms Lamb said that people receiving a tax offset should not waste anytime spending it at the shops.
“As the money hits bank accounts across the country in the coming weeks, the NRA is urging consumers to splash the extra cash at the shops.
“Whether it is purchasing a few extra items during grocery shopping, splurging on some personal items or finally having enough cash to make a long-awaited purchase, we encourage shoppers to not be shy about spending this money.”