(ARA) and the National Retail Association (NRA) have commended announcements aimed at supporting businesses and consumers.  This includes increasing the eligibility of single parental payments from eight to 14 years old, increasing the $20,000 instant asset write off for businesses with a turnover of less than $10 million and the small business energy incentive. CEO and partner of The General Store, Matt Newell told Inside Retail that retailers sit at the intersection between monetary tightening and government stimulus, and are “riding the break and the accelerator at the same time.” He said that some might see this as counter productive, but a “slow, slowing down” of the economy could benefit the sector, as the government seeks to reduce inflationary pressures. He added that support around energy, health care, welfare, and the environment were strategic ways to stimulate the economy, while also serving a social purpose. “The last thing that retailers want is [for the economy] to fall off a cliff,” Newell said.  “Pumping the gas a little bit is good, but ultimately the economy does need to slow down to [reduce inflation]. It’s just the case of the speed with which it happens. “I think it helps in providing a soft landing in lowering inflation [which] is a main thing that retailers want.” Timely and precise injection According to Australian Retailer Association CEO Paul Zahra, cost of living relief was front of mind for consumers, and the retail industry. In a statement, he commended measures put in place to provide that relief, while also stating that further support might be needed as the industry faces a “permanent state of disruption.” Zahra noted that the small business energy incentive – which, if passed, would provide businesses with a turnover of less than $50 million an additional 20 per cent deduction on investment in electrification and energy efficiency – would reduce costs and emissions in the long term. As would the energy bill relief fund which – in partnership with state and territory governments – provides up to $3 billion in electricity bill relief for eligible households and businesses. He also welcomed an increase in the JobSeeker rate, changes to single parent payments, the wage increase for aged care workers and reforms flagged for the migration system, all of which he believes would have a positive, flow-on effect for retailers.  But, he said that businesses need more support to manage higher labour, leasing, supply chain costs and insurance. “We’re ultimately experiencing a crisis in the cost of doing business,” he said “If small business is the backbone of Australia’s economy, the retail community is the beating heart. Alleviating cost-of-living pressures is a vital component of economic stimulation,” he said. Meanwhile, the NRA said that the budget delivers “a timely and precise injection of financial support.” This would result in more confidence and stronger household expenditure, which, it said, would provide a boost for small business owners. The NRA was also pleased with projections that inflation would return to the RBA’s target band by mid 2025, welcomed the continuation of the instant asset write off scheme, and the small business energy incentive. The NRA also said that it was awaiting more details of the 300,000 new, fee-free Tafe places. “The retail sector offers a start for every Australian, but the key to higher wages is the higher skills that can only come through training,” the NRA said. “Retail is one of the nation’s largest employment providers, and should not be overlooked in allocating those places.” High impact Prominent retailers have also weighed in on the recent budget. Harvey Norman executive chairman Gerry Harvey told The Australian Financial Review the government was “playing around the edges amid a slowing economy.” Wesfarmers executive Rob Scott supported cost of living relief measures, telling the publication that businesses are facing many of the pressures confronted by households. He told the AFR that faster project approvals and reducing red tape would help companies. Meanwhile, Newell said that the government delivering a surplus is a strong result following Covid-19 related fiscal expenditure. He added that it felt like a “relatively green budget,” with potential opportunities to go further. “There is a willingness from large retailers to do more on the sustainability front, and there is an opportunity for the government to support that more,” he said. “Driving sustainability for large retailers, beyond the [support offered for] small businesses would have a high impact.”