Online retailers positive in face of looming hits
Tech talk...Jason Littlewood and Lucas McEntee. Photo: Danielle Smith
Lucas McEntee and Jason Littlewood run an online electronics retailer, OHKI.
The company is relatively new and has been able to navigate the quickly changing industry with great success.
The pair expect to be affected by changes to superannuation in last week's budget. McEntee says OHKI will be recruiting new staff and the proposed increase in superannuation contributions that starts in 2013 and gradually rises to 12 per cent will be felt.
"It's not ideal but, again, if we put on our Australia hat it's essential we do have more superannuation," he says.
"As an employer, it is something we will have to factor in but as an online-based business, it will not hurt us as much as the bricks-and-mortar retailers because they have greater overheads."
Because they operate in an online environment, the pair suspect many budget measures will not affect them.
"Small businesses get a small adjustment in this budget for vehicles and can write off small items, so some people may purchase larger TVs to deck out their offices from businesses like ours," McEntee says.
"But in reality there is nothing substantial in the budget that is going to really affect us."
However, the pair say the lack of tax breaks for middle-income earners will contribute to the tough retail environment.
"The Australian shopper is getting smarter and they have to work harder for their dollar and there is nothing much out there for them in special offers from the government in terms of tax breaks," McEntee says.
"With the increasing strength of the Australian dollar and the fear of interest rate rises, it will drive more people online and e-commerce will be a lot more competitive."