In announcing the party's intentions, Mr Shorten said Labor has begun formal consultations to make it easier for small business incorporation without the burden of unnecessary red tape.
“More sole traders will see the benefits of incorporating their businesses under Labor’s plan to give small businesses the benefits of incorporation – which lower tax rates and improves liability protection,” Mr Shorten said.
Increasingly, small businesses are moving towards becoming companies – allowing them to gain the legal protection of limited liability, promote asset protection, retain profits for working capital, succession planning and income distribution, according to Mr Shorten.
“But currently, small businesses owners, who are often time-poor and face cash-flow challenges, are confronted with a hugely daunting and highly complex system in order to make this happen,” he said.
“That is why Labor will be consulting with the small business community, representative bodies, accountants and the legal profession to work on a solution that helps more small businesses access the benefits of incorporation – without the onus and ongoing expense of new red tape.
“We want to improve Australia’s current complicated and expensive arrangements, with another stream of incorporation, one that provides a single, simplified structure, tailored for small business.”
Mr Shorten said that as the Australian economy transitions, the role of small businesses as drivers of economic growth and prosperity has never been more important.
“This is why Labor will work to help ease the burden on small businesses and allow them to grow and prosper,” he said.