The chairman of retail conglomerate Wesfarmers has defended the role of big business in Australia and attacked “political leaders of all stripes”.
In a firm speech to shareholders at the company’s annual general meeting on Thursday, Michael Chaney said there was “very little appreciation” of where all the money was going.
The retail giant, which owns a wide range of iconic brands including Kmart, Bunnings and Officeworks, made $44 billion in revenue during fiscal 2024.
“I think there is very little appreciation for the enormous contribution that large companies like Wesfarmers make to the Australian economy and it is worth noting how significant that contribution is,” he said.
It said $29 billion, or about 65 percent, of revenue went to suppliers, $6.3 billion went to salaries, $4.4 billion went to rental, transportation and other services and about $500 million were given to the government in payroll taxes and other charges.
The company posted about $3.6 billion in pretax profits, or eight percent of original revenue.
“Now, to some outside parties, profit seems to be a dirty word,” he said.
‘But it is important to understand how profitable businesses are essential to our economy and future prosperity.
Wesfarmers chairman Michael Chaney defended big business in a strong speech to shareholders at the company’s Annual General Meeting in Perth on Thursday.
“On the one hand, businesses have to be profitable to continue operating, to do everything I just listed, like employ people, source products and services from suppliers, provide customers with what they need, and support their communities.”
Of the $3.6 billion figure, Chaney said 10 percent went to retained earnings, while the rest went to shareholders and retirement funds or to federal government taxes.
“It would be nice to hear political leaders of all stripes acknowledge that they understand these facts,” he said.
‘That great companies like ours constitute a vital part of the economy, generate enormous benefits to the community and make a huge contribution to society.
“Businesses, large and small, deserve your support.”
Wesfarmers owns some of Australia’s largest retailers including Bunnings Warehouse, Kmart, Target, Bunnings and Officeworks.
Some large companies have come under political pressure in recent years, with some politicians and community members outraged by the contrast of companies making substantial profits as Australians struggle to overcome an ongoing cost of living crisis.
Chaney warned that the mood of the moment posed a danger to national productivity.
“I’m talking about the many changes we’ve seen in labor laws, payroll taxes and some proposed environmental laws,” he said.
“Only through a thriving, vibrant and growing private sector will Australia be able to provide our children and grandchildren with the kind of support we have taken for granted in the past.”