Taxation barriers to SMEs: more than paying government lip service

THE FEDERAL Government has ordered a review of the Australian taxation system to identify areas that are hindering small business.

Finance Minister Mathias Cormann, Small Business Minister Bruce Billson and Parliamentary Secretary to the Treasurer, Steven Ciobo have jointly asked the Board of Taxation to conduct a review to identify features in the tax system that are hindering or preventing small businesses from reaching their commercial goals.

The move is regarded as recognition that record small business failures since 2008 have exposed serious flaws in Australia’s ‘business as usual’ approach to taxation, with an increasing compliance burden on small and medium business.

In a joint statement, the parliamentarians said the review was necessary “to unshackle the small business sector and make life simpler for small business especially when it comes to their interaction with the tax system”.

“Not only do we want to make Australia one of the best places to start a business, we want to make it one of the easiest places to stay in and grow a business,” they said.

“The government is fully committed the Tax White Paper process and this Board of Taxation review will complement the process with a dedicated focus on the small business sector to drive innovation and jobs growth.

“We want small business owners to spend less time on paperwork and more precious time and resources on growing their business.

“We can start by making their dealings with the Australian Taxation Office simpler, which what this review is about.”

The Board of Taxation will draw on its extensive links with small business and the expertise of its Advisory Panel in developing its report to the Federal Government before August 31 this year.

A copy of the terms of reference for the review is available on the Board of Taxation's website.

www.taxboard.gov.au

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