Retail stocks are going nuts after the budget

Heidi Klum at the launch of her Myer Intimates Collection in Melbourne. Luis Ascui/Getty Images

Shares in Australia’s major retailers came back into fashion today after the federal budget’s spending incentives for small businesses.

Harvey Norman was trading 5% higher at $4.62, JB Hi-Fi 2.54% to $20.99 and Dick Smith 2.34% to $2.190.

All three could be major beneficiaries of the budget measure to allow small businesses to claim a full tax deduction on assets worth up to $20,000 in a single year, rather than over five years.

Super Retail, which has stores including Super Cheap Auto and Ray’s Outdoors, was up 2.64% to $10.06.

Myer, which released results showing third quarter sales up 2.4% to $661.8 million, was stronger by 8.1% to $1.525.

Year to date, total sales are up 1.7% to $2,425.3 million. Myer said its online business continued strong growth. Trading was subdued in Western Australia and Queensland.

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