Most small firms want carbon tax scrapped

Written By Unknown on Senin, 25 Maret 2013 | 21.29

ALMOST two thirds of small businesses want the carbon tax scrapped, putting it second in their top 10 wish list ahead of the May budget, a survey says.

Topping the list in business software provider MYOB's 2013 business monitor was the perennial want of a significantly simplified Business Activity Statement (BAS) process for the GST.

MYOB chief executive Tim Reed said pricing carbon had been an incredibly poorly sold policy to business, but he was surprised so many firms wanted to get rid of it.

"It would be actually more work to small business if it was abolished than if it was maintained," Mr Reed told AAP.

He said rolling back the tax changes linked to the carbon tax, such as the tax-free threshold returning to $6000 from $18,000, would mean businesses having to collect tax from part-time workers that they don't collect now.

Small business is already buried in paperwork that results from the GST, partly due to the complexity caused by exclusions from the tax, such as fresh food, education and health.

"Getting rid of the exclusions, while politically unpopular, would make it a much easier system for business owners to administer," Mr Reed said.

Business owners also have to code every transaction they conduct for audit purposes, and Mr Reed said more than two-thirds got it wrong.

But the data is only used by the Australian Taxation Office (ATO) as part of a database to investigate past macro-economic trends.

"It is a massive onerous burden on business owners. Any government could get rid of that without needing to legislate," Mr Reed said.

He said business had noted the ATO had become tougher in the past 12 months, having been "quite light" in allowing firms to schedule payments, in response to the hit from the global financial crisis.

Waving penalty charges on late tax payments for start-up businesses in their first two years of operation would cost the government little, but it would show it understood the challenges facing a new business, Mr Reed said

"It would be one of those points of symbolism that small business owners could think at least 'somebody understands who we are.'"


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