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Business loses $350,000 per day



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JIJDIMOYLAN MP Shadow Minister for Small Business & Shadow Minister Assisting the Leader on Women's Affairs

Member for Pearce MEDIA RELEASE

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BUSINESS LOSES $350,000 PER DAY

A tired Labor Government continues to condone the imposition of draconian Fringe Benefits Tax (FBT) compliance costs, which continue to add approximately $128 million per year to small business costs.

"Australia's small business community has again been denied significant tax reform by a Government that has lost the capacity to take the tough decisions," said Mrs Judi Moylan MP, Shadow Minister for Small Business.

"The Government missed a 'golden opportunity' to implement reform for the benefit of the small business sector in the taxation laws amendment Bill debated in Parliament today.

"While the substance of the Bill addresses issues of importance, they are, 'light weight' when considered in the context of what really needs tolDe done in relation to tax law.

"A particular issue that the Government continues to hide from is its response to the review of Fringe Benefits Compliance costs.

"This report is now 219 days, $350,000 per day and $76 million extra in compliance costs too late. FBT compliance is costing Australian business a conservative $128 million per year.

"It is obvious from its tardy consideration of this issue that the Government condones inefficiency and waste and is seeking to impose such a regime on the small business sector. What other reason could there be for the Government's delay?

"The Keating Government, which has increased total tax revenue by 153.6 per cent since 1983 simply cannot grasp the concerns of the small business sector.

"Every dollar that is paid in additional tax and compliance costs is one less dollar for investment for future business and employment growth.

"Further damning evidence of the Government's wasteful actions comes from the fact that in the middle of the Tax Law Simplification Project the Government has the temerity to introduce a Bill written in the 'old style*. A perfect example of the waste and lack of attention to detail.

"Who pays for the needless re-write - you guessed it, the poor suffering taxpayer."

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