Updated September 12, 2018 11:55:17 The Australian Financial Commission has issued new figures that show the biggest losses from the government’s tax overhaul have been borne by small businesses.
Key points:The AFR has revealed that a whopping 12.3 per cent of all small businesses have lost out from the changesThe loss in tax revenue of a business of 10 employees has fallen from $5,800 to $3,700A new report shows that a large business is now the biggest loser from the GST overhaulThe Australian Council of Social Service (ACOSS) has said the Government has failed to properly assess small businesses’ costs and it is calling on the Government to make small businesses more affordable.
In a submission to the ABC’s Q&A program, ACOSS said that the Government’s proposed changes to the GST system have “dramatically impacted” the financial wellbeing of Australian small businesses and that many are facing financial hardship due to the changes.
“Small businesses have been hit hardest by the changes to Australia’s tax system,” the submission said.
“The Government has promised to help small businesses, but it’s now targeting the small business sector.”
By targeting the sector, the Government is ignoring the impact of the GST on many small businesses.”ACOSS said it is concerned about the impact on the community and businesses, and said the changes would have a “disproportionate impact on small businesses”.”
The tax changes have had a disproportionate impact on families, small businesses that rely on low income support, and those who rely on the local economy,” it said.
The new AFR report shows the Government had the largest tax cut in the history of Australia, with a $3.2 billion loss to small businesses in 2019-20.
The loss of tax revenue from the Government was more than the combined revenue of all other major parties combined.
The Government’s cut to the small-business tax was the biggest since the Howard Government cut taxes for all businesses in 1995-96.
AFR’s Andrew Wilkie said the impact has been felt by small business owners.”
Mr Kelly said he would “continue to encourage all of the business community to be more active” in advocating for the “fairness of GST”.”
Small business is the one group that’s actually benefitting from the current tax changes.”ACSA chief executive officer Paul Kelly said the AFR’s analysis was “an important milestone in the ongoing battle for small businesses” and the ACSA would continue to lobby the Government for a “fair and equitable” GST.
Mr Kelly said he would “continue to encourage all of the business community to be more active” in advocating for the “fairness of GST”.
He said he expected the Government would respond to the report’s findings.
“I think we’ll be able to work with them and see how we can work through some of the issues that they have,” Mr Kelly said.
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