UNLOVED SMALL BUSINESSES – NOT REALLY
Small businesses have been recipients of favourable tax concessions in the Budget over the past few years, says the Institute of Public Accountants (IPA):
- $20K instant asset write-off
- lower corporate tax rate
- unincorporated small business tax discount
- increasing the small business turnover threshold from $2 to $10 million
“The tax discount for unincorporated entities was a signature policy of the Institute which took a long time to get over the line,” said IPA chief executive officer, Andrew Conway.
“Tax concessions are important in reducing the regressive compliance costs on small businesses.
“Small businesses will be the recipients of a growing economy so anything the Government does in terms of tax cuts to those on lower incomes will contribute to small business growth. “Many small businesses are unincorporated entities (sole traders, partnerships, trustees) and they will be beneficiaries of a lower PAYG tax burden.
“The boost in infrastructure spending will also provide indirect benefits to the small business community.
So whilst there has been no further direct tax relief, small businesses will be beneficiaries of the Government driving economic growth in the economy.
The one dark cloud is compliance cost.
“The compliance cost on small business is already a major concern and this is set to increase with the extension of single touch payroll to all employers. We look forward working with the Government to make inroads in reducing the regulatory burden on SB,” said Mr Conway.