Is it time to cut through the bureaucracy in GST tax?

SMEs call for tax reform of a different sort

Many SMEs are likely breathing a sigh of relief now that the government has officially stated that the proposed GST increase has been taken off the table, at least for now.

The suggested increase of 5 per cent to 15 per cent could have been devastating for those businesses without the right kind of business development support. However, the recent debate has sparked a new question around GST: that of simplification.

The numbers are in

A new MYOB survey has revealed that more than half of SMEs did not approve of the GST increase, with the main concern being that of customers spending less for their goods and services due to the increased tax burden affecting prices.

The main reason for the decision not to go ahead with the reform was the results of the "homework" performed by the government showing that the benefits of GST reform would not outweigh the costs.

"The times are not right for that and this government would never seek to change the GST unless we put it to the Australian people first," said Treasurer Scott Morrison, according to SmartCompany.

The end of reform?

However, a certain kind of GST reform could prove beneficial to small business, according to MYOB CEO Tim Reed.

"With the Prime Minister now taking a GST change off the cards, we'd encourage government to now take some simple steps to reduce the GST compliance burden on small business," he said.

"Giving them back the 84 hours a year that SMEs spend on average collecting tax for the Australian government will free them up to grow their businesses and be more successful."

Time will tell if these results will galvanise the government to reduce red tape for small businesses.

Feeling the strain for your business tax compliance? Take some of the load off and speak to the expert tax agents at Wilson Porter today!