What is the small business wish list for this year's budget?

SBS World News Radio: Last year the federal government unveiled a $5.5 billion jobs and small business package as part of its budget.

What is the small business wish list for this year's budget?

What is the small business wish list for this year's budget?

So what do small businesses want this year?

Gervase Liddy runs a legal services company in Sydney.

He says last year's immediate write-off for assets under $20,000 was a big help.

"We were able to immediately go out and invest in computers, photocopiers, phone systems. That was the immediate benefit to us."

The tax break applies to businesses with a total turnover of under two million dollars.

But Spyros Kotsopoulos a Tax Partner at financial services company Deloitte says it should be extended.

"It can only be a positive, or benefit, fo the economy and for taxpayers if that was extended to another number, whether it be five-million-dollar, 10-million or six-million or whatever it may be. We already have small business concessions that talk about a six-million-dollar net asset test, yet we're applying a different rule here. So it seems to me, it would make sense to extend that treatment, beyond the two-million-dollar turnover client."

Last year small businesses received a 1.5 per cent cut in the company tax rate, to 28.5 per cent.

Mr Kotsopoulos thinks that should be extended.

"The tax cuts, I think, should be for a greater number of taxpayers. I have an issue with having too many tax rates for different taxpayers, because you find it drives behaviours. (For example) If I'm under two-million-dollars turnover, versus over two-million-dollars turnover."

Start-ups can claim an immediate deduction for professional expenses.

Many, like the founder of company "Get It Sorted," Hamilton Kings, benefited from research and development grants.

He says, with the government's stated focus on innovation, there should be more support.

"I'd really like to see some help, some grants, towards businesses which are keeping revenue in Australia, and businesses that are competing with other businesses that are sending their revenue offshore. With us being an advertising portal (website), competing with the likes of the giants Google and Facebook, who are sending all our money offshore."

Cutting red tape and simplifying the tax system remain two of the biggest issues for small business.

But Deloitte's Spyros Kotsopoulos says change has been slow.

"It may be driven by the fact there should be a consultation process for tax reform, so a lot of these issues have been put on the backburner till there is a clear mandate as to which way we go. But I think everyone is in unison in saying there has to be some tax reform consultation process, as to what it would be, I think is still to be decided, but I think everyone understands that it has to happen."

Gervase Liddy says it's just one part of a growing wish-list.

"I'd like to see something done about the National Broadband Network rollout. I think it's going too slowly, and I'd like to see something done about bracket creep that affects all employees. Lastly, I want to see the government get fair dinkum* about multinationals, I don't think they're paying their fair share of tax."

 

 


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3 min read
Published 29 April 2016 7:00pm
Updated 29 April 2016 7:07pm
By Ricardo Goncalves


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