Accounting groups have renewed calls for small businesses to be exempted from a new levy to pay for the Federal Government’s anti-money laundering service, AUSTRAC.
The Senate passed laws yesterday that will mean about 17,000 businesses will be charged a minimum of $284 – and as much as $250,000 for large businesses – to pay for the government’s defence against money laundering, organised crime and drug importation.
While initially targeted at banks, financial planners, and people directly involved in the financial industry, experts expect the levy will be widened to target accountants, lawyers, real estate agents and jewellers.
Gavan Ord, business policy adviser at CPA Australia, says he is philosophically opposed to the charge, and warns a widening of the levy could encourage businesses to not comply or prompt people to leave their industry.
“We’re not arguing against the need for laws to try and prevent money-laundering. That’s actually very important,” Ord says.
“But it is the government – and the community as a whole – that directly benefits from tracking down criminals.”
He warns widening the levy could be the straw that breaks the camel’s back for many businesses. Ord estimates that up to 60,000 businesses could be targeted in the second tranche.
And while the bill excludes micro businesses – those with fewer than five employees – CPA Australia’s calls for those with fewer than 20 employees to be exempted has been ignored.
The fees have also been criticised by the Australian Bankers Association, the Australian Financial Markets Association and the Association of Superannuation Funds.
Smart Company is a sister publication to The Mandarin, catering to Australia’s entrepreneurs, small and medium business owners and business managers.
