Small business tax cuts good but not enough
The proposed corporate tax rate cut of 1.5 per cent is a step in the right direction but does not go far enough, according to the Institute of Public Accountants (IPA).
“We have been long advocating for a concessionary rate of tax for small business income to take into account the regressive burden placed on small business and to encourage and reward entrepreneurial activity,” said IPA chief executive officer, Andrew Conway.
“We are very pleased that the Government has started on this process but as it stands, the proposed tax cut only applies to those small businesses that are incorporated.
“It is refreshing to see new incoming Treasury secretary, John Fraser being quoted as saying that ‘tax cuts are a better way of stimulating the economy than government spending’. We couldn’t agree more.
“There are thousands of small businesses that are doing it tough and a concessionary rate of tax would be of significant benefit; so we are hoping the Government will complete the job in the Federal budget by introducing other measures aimed at assisting all small business entities.
“We need to provide relief for small businesses to encourage their productivity, entrepreneurialism and growth,” said Mr Conway.
The IPA has made this recommendation as part of its 2015/16 pre-Budget submission. Further detail can be found at www.publicaccountants.org.au/2015budget