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CPA survey confirms small business woes.

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Joel Fitzgibbon - CPA Survey Confirms Small Business Woes //media/0901/jfmsgst180901.html Tuesday, 18 September 2001

CPA Survey Confirms Small Business Woes Joel Fitzgibbon - Shadow Minister for Small Business

Media Statement - 18 September 2001

The CPA Australia small business survey released today confirms what the Small Business Minister's Cabinet submission told us - much more needs to be done to address small business GST problems," Shadow Minister for Small Business, Joel Fitzgibbon, said today.

Mr Fitzgibbon was commenting on the July survey of 600 small businesses, and 100 CPAs serving small business clients, that looked at the impact of the New Tax System changes over the last 12 months and how small businesses have dealt with the changes.

"The results show that just 20 per cent of small businesses are happy with the GST, while 39 per cent believe it has had a negative impact on their overall business performance.

"While Minister Macfarlane continues to claim that 'small business is over the hump', it is clear many small business operators continue to struggle with the new tax system.

"This survey confirms what Labor suspected has been happening: that the GST is having a negative impact on small business cash flow. The proof is undeniable.

"Fifty-six per cent of small businesses said the New Tax System had a negative impact on their cash flow, while four out of five CPAs thought their clients' cash flow was negatively affected by the tax changes.

"Further, 71 per cent of CPAs thought their small business clients had experienced slower payment by debtors, which in turn saw their clients slow their payments.

"This is the new tax system the Prime Mister promised would create a cash flow windfall for small business. The reality has been entirely different.

"It is time for Mr Macfarlane to stop apologising and do something worthwhile for the small business community. Authorised by Geoff Walsh, 19 National Circuit, Barton ACT 2600.