SMEs cry out for company tax cuts

On the cusp of the 2016 federal budget announcement, Australian SME owners have voiced a united desire for company tax rates to be reduced, according to new research.

The latest MYOB Business Monitor, a survey of more than 1,000 Australian SME owners conducted by cloud accounting provider MYOB, found that 60 per cent of SMEs agreed that company tax rates should be reduced if Australia's business environment is to remain competitive.

"What the results tell us is that while business owners are managing with the current tax regulation, there is a lot more that the government could be doing to reduce the day-to-day burdens," explained Tim Reed, CEO of MYOB.

"We can’t ignore the benefits that reducing company tax rates would provide to the Australian small and medium business community, who make up the vast majority of businesses in Australia.

"Given the group’s prominence, there is a significant economic benefit for Australia if we enable SMEs to become more competitive via tax reform."

An overwhelming majority of business owners saw taxation as the most important area of government regulation to be simplified, with 52 per cent indicating that it was most important, followed by work, health and safety, which trailed at 12 per cent.

However, when it came to the question of fairness, business owners were slightly more likely to believe that the tax system was fair (37 per cent) than unfair (32 per cent).

The Business Monitor also revealed that less than half (44 per cent) of business owners intended to take up the instant tax write off this financial year, with 30 per cent having already purchased an asset and 14 per cent intending to purchase an asset.

“The tax incentive was certainly a great step forward in assisting small and medium business owners, and we hope to see a similar emphasis on lifting the tax burden on Tuesday evening," explained Mr Reed. 

"We hope that the government listens to the united call for company tax reform, as business owners gear up for the next economic year ahead."

 

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