Why Small Businesses should care about Tax Reform

Imagine a business environment where you can confidently make decisions about how to structure your business affairs to benefit you now and into the future.

Tax reform is how we achieve this.

As a small business owner I know you must be thinking

“why on earth should I care about tax reform when I have a business to operate, employees to look after and a family at home. Is there not enough on my plate?”

Yes, there is!

Yet, tax reform is how you achieve the stability required to support your life and business and this is why you should support tax reform and those advocating on your behalf.

In my almost 20 years as a tax practitioner I have seen the tax environment we operate in change with regularity and complexity. Thus creating an unstable landscape in which to provide long term tax and structural advice.

The world is changing rapidly, and with every failure to prioritise tax reform our tax system falls further and further behind. For small businesses to be successful there must be certainty about the regulatory environment in which they operate. Australia lacks a national tax plan and without one, tax cuts are a tool used by Government to buy votes. Successive elections and budgets have addressed short term issues but failed to deliver any long-term substance.

Meanwhile the activities of the Australian Tax Office have become more aggressive in an attempt to reign in what tax collections are available. This results in:

  • Audit activity increase, often resulting in stress for business owners
  • A break down in the relationship between the Australian Tax Office and Tax Practitioners and the evolution of a combative relationship
  • Changes to long standing practices
  • Tax policy become reactive rather than proactive
  • Uncertainty from unlegislated budget announcements
  • Inadvertent errors by Taxpayers

What tax reform looks like

Tax reform isn’t just about changing the tax rates or having the lowest tax rates in the world. Tax Reform looks like:

  • Reducing complexity
  • Improving communication with businesses
  • Announcing policy changes with lead time, not instantly or retrospectively
  • Consecutive Governments working towards a consistent national plan
  • Implementing policy change consistent with a national plan
  • Reducing compliance time

Getting tax reform right would mean that the current instability you feel as a small business owner in the operating conditions around you would ease. You could confidently make decisions about how to structure your business affairs to benefit you now and into the future.

As a tax practitioner I want to be able to establish a structure and plan to ensure your success not only in today’s environment but as your business grows, matures and ends (whether by sale or closure).

You can help

You can help the tax profession advocate for tax reform by:

Accountants and tax professionals are fighting for changes which will support your business and improve the future of all Australians.

If you’d like to work with me and learn how I can help you operate your business in this environment I’d love to hear from you. Book a time to talk to me now