News

SME compliance too taxing

Small_biz_w250Small businesses should be compensated for the time they spend being unpaid tax collectors, according to a Federal Government submission by the National Institute of Accountants (NIA).

As reported in online business website dynamicbusiness.com, rises in the complexity of tax laws have meant compliance has become increasingly difficult, with the financial impact on small business disproportionate to their ability to cope.

“With constant changes to fringe benefit tax, capital gains tax, goods and services tax, income tax and compulsory superannuation, our taxation system has become too onerous for most taxpayers, requiring the need to engage a professional tax advisor,” NIA CEO Andrew Conway said.

“Access to quality tax advice is critical to the integrity of the tax system. In fact, the percentage of businesses that engage a tax practitioner to lodge their tax return now exceeds 95 per cent.”

“While it is important for small businesses to continue to use tax professionals in this environment of increasing complexity, the Government should compensate small business in the form of a non-refundable tax offset when they engage a registered tax professional to undertake certain work on behalf of the ATO,” he said.

The proposal forms part of the NIA’s pre-budget submission to the federal government which provides measures that could assist Australia’s small businesses. The full submission can be found on the NIA website at http://www.nia.com.au.

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