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A survey by cloud accounting software provider Reckon has revealed the key changes SMEs want to see from the government in this year’s budget, with tax reform high on the agenda.
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Reckon reveals SME desires ahead of budget
02 May 2017
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Reckon conducted a survey of 1,200 small business owners ahead of budget 2017, which is due to be released on Tuesday, 9 May.
The survey revealed that SMEs want the federal government to reduce payroll tax rates, legislate payment terms and extend the instant asset tax write-off.
Seventy-six per cent of respondents said they support the reduction in company tax rate for businesses with a turnover of less than $10 million to 27.5 per cent in FY2016-17 and for businesses with a turnover up to $50 million in subsequent years.
Ninety-two per cent of respondents believe it’s important for the federal government to work closely with state governments to enact payroll tax reductions.
“Australia’s high company tax rate and high state and territory payroll tax rates are evidently massive inhibitors to small business growth,” Reckon Australia and New Zealand managing director Sam Allert said.
“Something as basic and fundamental as hiring staff to keep your operations running shouldn’t present such a burden for business owners.”
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The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) recently called for payment times to be legislated in its Payment Times Final Report.
The ASBFEO’s position is supported by the majority of respondents in Reckon’s survey. Sixty-nine per cent said they want the federal government to step in to address late payments, with 71 per cent saying the issue restricts cash flow.
“The current system is evidently not working,” Mr Allert said.
“The Business Council of Australia’s proposal to implement a voluntary industry code, that would ensure small business suppliers are paid within 30 days of issuing a correct invoice, is a welcomed measure but it is clear small business owners want more in the form of government legislation to directly address problems with late payments and lengthy payment terms."
Finally, 86 per cent of respondents believe the government should extend the $20,000 instant asset tax write-off for businesses under $2 million in revenue beyond 30 June 2017.
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