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No more unpaid small business tax collectors

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1 June 1999

No more unpaid small business tax collectors

Small business should have access to ongoing compensation to offset the cost of a vastly more complex GST, the Australian Society of Certified Practising Accountants (CPAs) said today.

“The new shape of the tax package which makes food GST free is much more complex than the Government’s original proposal. We estimate that GST free food will impose an additional $100 million in compliance costs every year and this will be borne disproportionately by small business. The Treasurer has now confirmed this figure,” Angela Ryan, ASCPA Tax Director said today.

“It is important that the Government does not just throw a one-off cash payment at small business to compensate for the impact of the GST, but sets in place an ongoing system to prevent costs crippling this sector.

“While the negotiated package is far from ideal for small business there are steps that Parliament can take to assist small business. This compensation should recognise the disproportionate burden that small business will face.

Ms Ryan said that one option would be to provide compensation on the basis of a small business’s turnover of GST-free goods. This way, small business will not wear the costs of the amendments to the original GST proposal.

“The Australian Democrats food amendments already provide for financial compensation for small business. The spirit of this principle should still stand in the new package. A workable mid ongoing system must be negotiated to prevent this sector unnecessarily bearing the highest burden of the tax and losing faith in tire new system,” Ms Ryan said.


Contaet: Angela Ryan, ASCPA Director -Taxation, 0414 865 339 (nr), or Lisa Armstrong, PR Manager -NSW. 02 9375 6205 (bh), 0414 834 700 (m).


Australian Society o f Certified Practising Accountants 170 Queen Street, Melbourne, Victoria 3000 Tel.: 03 9606 9606 Fax: 03 9602 1163 ACN 008 392 452