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'Poles apart' is wrong on small business



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P A- R L I AML N) O F A U S T R A L I A Ύ i ; H O U S E OF R E P R E S E N T A T I V E S

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MEDIA RELEASE Acting Shadow Minister for Small Business FEDERAL MEMBER FOR CORINELLA

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’Poles A part is Wrong on Small Business

The 'Poles Apart' document is poles apart on the truth about the impact of Fightback! on small business. Indeed, under Fightback! small business stands to gain for the first time and gain in a big way.

Poles Apart Wrong - The Poles Apart document is wrong on its comments about the administration of the GST. Administration is simple, will involve the completion of only one form once every three months for most small businesses and will utilise records and documents currently kept for normal income tax and other business

purposes.

That the administration of GST is easy has been confirmed by the Auckland Chamber of Commerce and Industry, who said:

".. the time involved in completing GST return forms for government is minimal."

and

"We provide to Government a GST return form every two months and it takes a maximum of 10-15 minutes."

Similarly, according to David Taylor of the NSW State Chamber of Commerce:

"... GST calculations are easy, non-time consuming and certainly will not involve a paper-war."

It is hypocritical in the extreme of the government to comment on the administration of GST at a time when they are imposing massive new addition tax paperwork and compliance responsibilities on small business.

It is also worth noting that small businesses who fall into the Government's sales tax system are forced to remit sales payments once every month, irrespective of whether they have sold the goods or not.

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The Coalition, by contrast will require small businesses to remit GST only once every three months. In the meantime they will gain a definite cash-flow advantage because they will have use of all the GST collected from the time of collection up to the time of remittance for their own business purposes, including to run down their

overdraft or as an interest free loan.

Poles Anart Wrong - In noting what they have done for small business - which is pathetic by anyone's standards - the government failed to mention all of the extra burdens they have imposed on small business, including the training levy, the superannuation levy, record high interest rates and the worst recession in 60 years.

They also neglected to mention that under their administration we have seen small business bankruptcies skyrocket to record levels.

Poles Apart Wrong - The Labor Party is wrong in stating that small business will not gain from our plans to abolish taxes on business, including payroll tax. While some small firms do not pay payroll tax or the training levy, their larger suppliers do and build the cost into their prices. Hence small businesses will still gain from

the abolition of payroll tax and other taxes through lower business input costs.

Moreover, most small businesses have a company motor vehicle or ute, a telephone, facsimile, computor and office furniture as well as use office stationary. They will gain from the abolition of sales tax on all these items as well as the abolition of petrol excise.

Poles Apart Wrong - The government did not give a full account of the Coalition's policies for small business. For example, they did not make any reference to the introduction of a Capital Gains Tax roll-over - something which the Minister for Small Business recommended in his Report on Small Business and which he cannot

get his Cabinet colleagues to agree to, nor our plan to exempt the proceeds from the sale of a small business from CGT where they are used for retirement support.

Nor did the government note that our plans to contract out more government services and functions will create many more business opportunities for small firms.

Nor did they note that our plans to slash personal income tax rates will give consumers many more after tax dollars to spend on the goods and services offered by small business, boosting sales and demand.

Poles Anart Wrong - Overall Poles Apart is a misleading document which has no other objective but to continue to mislead and scare small business.

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Contact: Russell Broadbent on (059) 96 8721