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Joint Media Release – Minister for Small Business and Assistant Treasurer

Tuesday 20 January 2015:

Small business is the engine room of the economy and a key driver of jobs growth in Australia. The Government wants to simplify small business’ interactions with the tax system and make Australia one of the best places to start and grow a business.

We have released the Board of Taxation’s report on taxation impediments to the success and growth of small business.

The report focused on short and medium-term priorities for small business tax reform with a particular focus on simplifying processes and cutting excessive red tape.

The Government recognises that the Australian Taxation Office has already begun implementation of most of the administrative recommendations identified in the report.

The removal of tax impediments for small business will make it easier for businesses to start, enable established businesses to grow and provide greater security for small business owners in retirement.

The report noted that superannuation penalties can be harsh, with disproportionate outcomes. The Government will ensure that penalties for employers who inadvertently pay their superannuation guarantee late or short pay their employees’ contributions by a small amount reflect the nature of the breach. These changes will take effect from 1 July 2016.

The report will also be an important input to the Government’s broader considerations on small business taxation and is particularly timely ahead of the Government’s release of the Tax White Paper.
Tuesday, 20 January 2015

Link to full report: bit.ly/BOTReport

Media Contact – Minister Billson 0455 050 045
Media Contact – Assistant Treasurer 02 6277 7360