In its Small Business White Paper, and in line with mounting pressure from the accounting profession, the IPA recommended government reaffirm its commitment to comprehensive tax reform.
The closest any government has come to addressing these calls is the tax white paper process, which hasn’t been addressed since 2016.
Specifically, the IPA said the federal government should address the inconsistencies small businesses face across the country with payroll tax. Despite Treasury’s findings to the contrary, accountants in their droves have told Accountants Daily payroll tax disincentivises growth for small business.
The IPA also called on the government for reform at the foundation level for property-based taxes, which is another sore point for the profession.
“The IPA has repeatedly advocated for the need for major and bold tax reform by moving from transaction taxes on property to broad-based land tax,” the IPA said.
For consistency and efficiency purposes, the IPA is also recommending the government broaden the base and lift the rate of GST.
“As a consequence of increasing the rate of GST, state and territory governments would have greater capacity to substantially reduce or eliminate key stamp duties and charges on transactions such as property transfers, vehicle registration and insurances,” the IPA said.
More to come.
The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day
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