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The Institute of Public Accountants (IPA) says it broadly supports the proposed small business tax cut, but has called for the cut to be applied to a broader range of businesses.
While the IPA said the proposed 1.5 per cent cut is a step in the right direction, chief executive Andrew Conway said it does not go far enough.
“We are very pleased that the government has started on this process, but as it stands the proposed tax cut only applies to those small businesses that are incorporated,"said Mr Conway.
“We have been long advocating for a concessionary rate of tax for small business income to take into account the regressive burden placed on small business and to encourage and reward entrepreneurial activity.”
Mr Conway said it has been refreshing to hear that incoming treasury secretary John Fraser has been saying tax cuts are a better way of stimulating the economy than government spending.
“We couldn’t agree more,” he said.
“There are thousands of small businesses that are doing it tough and a concessionary rate of tax would be of significant benefit, so we are hoping the government will complete the job in the federal Budget by introducing other measures aimed at assisting all small business entities.
“We need to provide relief for small businesses to encourage their productivity, entrepreneurialism and growth,” Mr Conway said.
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