“What does business want from government? They want consistent and consistently communicated policies and plenty of time to debate the issues so you don’t get these surprises when you wake up in the morning and all of a sudden there is a whole new tax”.
Quoting Yvo de Boer from KPMG in the SMH.
Innovation Policy Goals
- Where an international entity makes an offer for Australian owned intellectual property, the Australian Government will endeavor to match a percentage of that offer. This action will help Australians benefit from Australian innovation while reducing the risk associated with ‘picking winners’.
Small Business Policy Goal:
- To reduce the compliance tax rate equivalent down to 4% for SMEs
- Abolish all payroll taxes immediately
Identify how to reduce the compliance tax rate equivalent for SMEs down to 4%
The compliance tax rate equivalent is a measure of the percentage of net profit before tax consumed by complying with tax obligations. A 2008 survey (1) found that tax compliance costs for large businesses were 3.8% of net profit before tax, whereas for small to medium enterprises (SMEs) it was 12.9%.
By working with SMEs, the ATO and the abundance of innovative talent that exists in this country, making tax compliance easier and faster for both SMEs and the ATO, is achievable.
For further information on the idea please click here.
Predatory pricing and the 2007 ‘Birdsville’ amendment
Predatory pricing is where a business sells a product at a price lower than the suppliers cost price for a sufficient time period to damage the financial viability of the supplier. The 2007 ‘Birdsville’ amendment is designed to deter predatory pricing and we expect it to be enforced (2).
- Identify how to reduce the compliance tax rate equivalent for SMEs down to 4%.
- Ensure the ACCC initiates litigation, where appropriate, under s.46 of the Trade Practices Act, the wording now inclusive of the 2007 ‘Birdsville’ amendment
Note 1: 2009, Small Medium Enterprise Total Tax Contribution Report, Commissioned by the Department of the Treasury, PriceWaterhouseCoopers & is available here.
Note 2: To go to the 2007 media release by the Hon Barnabe Joyce MP on the ‘Birdsville’ amendment click here.
Employer superannuation payments to be taken over by the ATO
A great idea put forward by the Council of Small Business of Australia (COSBOA) is to transfer the responsibility for employee super payments to the ATO. Currently there are millions of employers making millions of individual payments to the different superannuation companies.
Allowing employers to just include the super payment with the PAYG payment to the ATO will create a huge reduction in wasted time for both employers and superannuation companies. One point of contact between the ATO and superannuation companies, plus smart IT systems will save many thousands of hours of paper shuffling.
>Employer superannuation payments to be taken over by the ATO
Agriculture Policy Goals
1. Create a national database that lists all existing and future foreign purchases of Australian farmland, where the data is publicly available for free.
2. Expand the database to include all Australian assets purchased by foreign entities.
3. Upgrade food labeling laws so that the source country is clearly mentioned on the packaging.