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IPA: push tax relief for small entities
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 percent 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.
About the Institute of Public Accountants
The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies. In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 35,000 members and students in over 80 countries. The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants. The IPA was recognised in 2012 as Australia’s most innovative accounting organisation and listed in the top 20 in the 2012 BRW Most Innovative Companies List.
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