Tax system must support small business growth, says IPA

The Institute of Public Accountants (IPA) is urging the Government to implement a simplified and targeted small business tax system which supports small business growth within the development of the Australian Small Business White Paper.

“The IPA believes that immediate and tangible incentives must be offered to entrepreneurs and innovators, to encourage their entry into, and long term engagement with the Australian small business sector,” said IPA chief executive officer, Andrew Conway.

The Australian Small Business White Paper launched at a special Summit conducted by the IPA with a  group of key policy and industry leaders in Parliament House in Canberra, has put forward a number of recommendations around a better tax regime for small business.

“The sustainability and growth of small business is crucial to Australia’s economy, both in terms of productivity and prosperity.

“The first iteration of the Small Business White Paper has posed a number of recommendations to reduce tax related compliance burdens which impede business growth.

“These compliance burdens impose substantial costs of time and money which when combined with other non-tax regulations imposes major disincentives to employing staff.

“We are encouraged by the current work being done by the Board of Tax which we expect will deliver some of the necessary actions to reduce the burden on small business; of course, then it will be up to the Government to decide on these recommendations.

“It is the IPA’s intention to take feedback from last week’s Summit, gain additional input from other stakeholders across Australia, and to submit the final Small Business White Paper to Government by December of this year,” said Mr Conway.