COSBOA to use its tax forum invitation to push for less red tape as complaints mount over topics, guest list

The Council of Small Business of Australia has welcomed its inclusion on the guest list for the Government’s two-day tax forum, but others have complained about the invitation list, the topics ruled off for discussion and whether two days is sufficient for the tax talkfest.

Peter Strong, executive director of Council of Small Business of Australia, says the body is pleased to be included on the list, but it’s only appropriate given the sector’s contribution to the country.

This week, Treasurer Wayne Swan said there was a “special place” in his heart for small business, and some of the “best, most grounded information” he gets about economic conditions comes from small business.

Strong says COSBOA will be concentrating on a range of things, including reducing the complexity of the tax system, and cutting the amount of time SMEs need to spend on paperwork, such as superannuation.

He says COSBOA is seeking comment from small businesses, and will set up a website with ideas for discussion at the forum, which will be held on October 4 and 5.

“So someone in a café or driving a truck, they can come to us and then we can sift through it and say, ‘This has come from the grass roots saying how it should all work.’”

The Government copped criticism yesterday for ruling out an increase in the GST level from 10%, but Strong says at the smaller end of town, it’s all about paperwork and how much time it takes to process various payments.

“A lot of the taxation stuff has come from big business for big business,” Strong says.

“Design a system to suit us, the majority, and then the others will fit in because it’s much easier for them because they’ve got experts.”

Shadow Small Business Minister Bruce Billson says one SME representative simply isn’t enough, and demonstrates Labor Government’s “indifference and disdain toward Australia’s small businesses and family enterprises.”

“In Wayne’s world, the small business community that supports the livelihood of nearly half the workforce warrants just one small business-specific voice at the tax event that has shrunk from a summit to a seminar, while just 18% of the workforce that is unionised warrants 13 union representatives,” Billson says.

“Genuine commitment would have seen hospitality, retail, food and grocery, self-employed and tourism, small business and family enterprise interests, just to name a few, granted a seat at the tax seminar.”

The Australian Retailers Association is one group “extremely disappointed” to have not been given a guernsey and says the sector as a whole has been overlooked.

ARA executive director Russell Zimmerman points out that retail employs more people than any other industry.

“There has never been a more important time to advocate for a sector that’s struggling to post any growth and ensure jobs in retail aren’t threatened.”

In the tax forum discussion paper, released yesterday, questions for consideration included lowering the company tax rate and how this could be funded, and ways to simplify business interactions with the tax system, especially for small business.

The small business references in the discussion paper mostly related to Government initiatives such as the instance asset write-off, the standard deduction for work-related expenses, changes to the fringe benefits tax treatment of cars, replacing the Entrepreneurs’ Tax Offset with the instant write-off of any new asset worth under $6,500, and the planned cut in the company tax rate to 29%.

It also notes that the Henry Tax Review favoured another look at tax depreciation arrangements, and some streamlining of depreciation for low value assets, particularly for small business.