Industrial retail body Australian Retailers Association (ARA) has stated that the federal budget lacked schemes to relieve the retailers from cost pressure.

According to the group, small businesses are not given any tax relief, higher personal income tax, capital gains tax relief, cost offset to fund the hike in the superannuation levy and reduction in tax compliance and red-tape.

ARA executive director Russell Zimmerman remarked that the government failed to narrow down the low value import tax threshold to encourage local retailers to perform on part with their foreign counterparts.

"The ARA is disappointed that the 2012-13 deficit of $20 billion is still so high, not only is it disappointing, it leaves little confidence in the Government’s ability to deliver its latest forecast surplus in the forward estimates," added Zimmerman.

"It seems that Australian businesses will again bear the brunt of fiscal ill-discipline, with the $200 million increased tax burden next year adding to business costs and eroding Australia’s productive capacity.

"The abolition of the baby bonus will hit young families hip pockets just when they hit retail stores catering for their new children.

"Once again a sneaky grab for cash from those who can least afford it along with already announced tax," said Zimmerman.

However, ARA has welcomed funds of $24bn towards nation-shaping infrastructure, hoping that would benefit retailers in the country citing efficient transport and delivery system.

"The ARA looks forward to learning more about the commitment of the $45 million Skills Connect Fund to deliver more effective workplace training for Australian businesses and hope that it will benefit Australian retailers and up-skill retail workers," Zimmerman concluded.