Home topics start-up-entrepreneur Expert Investing Opinion Expert Google Tax: an incubator fund for start-ups Alan Osrin July 18, 2016 Taxes are high in Australia. But when it comes to taxation policies, our government is too lenient on some large businesses and too hard on small business. Some large multi-national companies have been able to utilise tax structures that allow them to avoid paying their required tax in Australia, which has enabled them to lower their tax obligations. The fact some big businesses are paying minimal amounts of tax in Australia, compared with small businesses that are trying to do the right thing and pay their fair share of tax in Australia, is a clear example of the disparity in the tax treatment between large and small businesses. Small businesses matter Small businesses are the country’s biggest employment base and the heartbeat of our economy. They account for 96 per cent all Australian businesses , 44% of Australia’s employment (4.72m people) and one fifth of Australia’s gross domestic product . Not enough is done to help small businesses grow. Australian small businesses would be in a better position if some of their tax money could instead be invested in their businesses, and I support the move to cut the tax rate for small businesses. But it’s not enough, especially when some larger companies are avoiding the need to pay tax in Australia. The government is now taking steps to address the loophole with the proposed introduction of the Diverted profits tax