The tax cuts in this year’s budget will boost Australians’ spending on eating out.
Budget Night is referred to by some as Christmas in Canberra! For me, it is a pleasure to celebrate this type of festive season if it means a better life for restaurateurs and caterers. This year’s budget certainly did that!
The tax cuts granted to many Australians in this year’s budget will inevitably end up in the cash registers of our businesses. Perhaps more importantly they offset other incursions in take-home pay (such as interest rates and petrol prices) that would have meant less spending in restaurants if they had NOT been addressed.
The Sensis Consumer Sentiment report suggests that restaurant spending is impacted far more by a reduction in take-home pay than an increase in disposable income. That is, consumers are very likely to reduce their spend on restaurant meals if they receive less take-home pay but are less likely to spend extra income on meals out (the first thing they do is pay off debt).
Either way we win! More money in the pockets of Australians means we live to fight another day and we have to thank the government for a policy of returning surpluses in tax cuts.
I was honoured to spend Budget Night with Minister Bailey. I agree with her that we should “charge our glasses to Peter Costello to a job well done”. Here’s to another good news budget for our businesses.
President, Restaurant & Catering Australia