Taylor & Scott’s Managing Partner Talks About Business And Taxes
Last year, small businesses benefitted from a $5.5 billion jobs and small business package. The government tax changes allowed an immediate writeoff of assets under $20,000 and a reduction in the small business tax rate.
Gervase Liddy, our managing partner, explained that these changes allowed the firm to quickly upgrade its office equipment and invest in technology. The cut in the tax rate from 30% to 28.5% helps but more needs to be done.
The tax changes help smaller businesses like law firms, medical practices, tradies and other goods and services providers. But it’s the clients and customers who can benefit the most from increased efficiency and faster turnaround times.
What’s Top On Business’ Wish Lists
While last year’s changes are helpful to small businesses, more still needs to be done. The government’s goal of spurring investment in research and development is on the right track. With the announcement of the 2016 Federal Budget, small business’s will have some relief with further tax cuts. But, business owners are looking for more in order to increase revenue and employ more people.
Businesses would like to see the government:
- Cutting red tape. Make it easier and simpler to benefit from existing tax changes
- Simplifying the tax system. Currently, there are many different tax brackets, each with its own benefits.
- Expediting the rollout of the National Broadband Network
- Involving business in a consultation process. When business and government work together to exchange ideas, it becomes easier to facilitate changes that benefit everyone.
Eliminate “Bracket Creep”
Bracket creep is when taxpayers move into higher tax brackets simply due to inflation. They have no real increase in purchasing power or income because more of the income is taken away by taxes.
The complex, progressive tax system needs to be simplified and the tax rates lowered. Meaningful tax reform needs to move forward in the government this year.
Experts say that the last year’s tax breaks should be extended this year to businesses with an aggregate turnover of more than two million dollars. Mr. Liddy also believes that the NBN is moving too slowly and more effort is needed to expedite the rollout now.
The Government also needs to ensure that multinational’s are paying their fair share of tax in Australia.
Counselling And Advising Businesses
We provide legal services to foreign and Australian businesses operating in Australia. Taylor & Scott attorneys are often called upon to provide expertise on current and cutting edge business matters being discussed in the media. Australian businesses have trusted us since 1905.
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