Small business is crying out for much needed tax reform that was missing from last night’s Federal Budget, with small business overwhelmed with regulatory burden.
The National Institute of Accountants (NIA) has taken issue with the lack of serious tax reform contained within last night’s Federal Budget. The NIA believe the budget confirmed that tax reform has been put on the back burner while small business continues to be overwhelmed by the regulatory burden of an overcomplicated tax system.
NIA chief executive officer Andrew Conway said that small business needs immediate tax relief.
“We have been disappointed that only a handful of the Henry Review’s recommendations are proposed to be implemented and that these are contingent on the resource super profits tax going ahead,” he said.
“Small business is still facing major uncertainties around discretionary trusts and the use of corporate beneficiaries and we noted the omission of well overdue reforms to fringe benefits tax which represents a significant compliance burden on small business.
“Some good small business initiatives, including the immediate writing-off of assets and the reduction in the corporate tax rate, will not start until 2012,” he said. “This will do little to help small business now.”
Two thirds of small business will not benefit from these initiatives as they are not incorporated and will also face the added impost of higher superannuation guarantee changes over time which will absorb most of the savings they are entitled to.
