The Enterprise Tax Plan Bill is unlikely to pass through the Senate unless the granting of tax relief for large entities (turnover in excess of $10 million) is removed from the bill, according to the Institute of Public Accountants (IPA).

“By removing these entities at this point of time, the bill could successfully progress through Parliament and provide much needed tax relief for SMEs,” said IPA chief executive officer, Andrew Conway.

“The bill currently contains company tax relief for large entities over a 10 year period but these entities may have to wait as there seems little chance these reforms will pass through the Senate and their inclusion in this bill would therefore be at the detriment of other tax relief measures for smaller entities.

“We don’t oppose tax cuts for the larger entities but not at the detriment of smaller ones.
“With 61 per cent of actively trading small businesses (turnover of less than $2 million) being non-employing, moving the tax threshold for access to small business concessions to entities up to $10 million can potentially contribute to more employment as such entities are already employing entities.

“The revenue foregone is likely to be substantially covered by the economic benefits from increased employment, higher wages and lower compliance costs,” said Mr Conway.

These recommendations form part of the IPA’s pre-Budget submission. For more information go to: http://bit.ly/2jxoU7L