Ahead of Tuesday night’s Federal Budget, a significant number of SMEs will be hoping for a company tax rate cut according to MYOB’s latest Business Monitor.
The Business Monitor, a survey of more than 1000 Australian SMEs, reveals 60% of SMEs believe company tax rate should be reduced in order to maintain a competitive business environment.
Taxation is top of mind for the majority of business owners, with more than half (52%) viewing taxation as the most important area of government regulation to be simplified.
The Business Monitor does show, however, that a higher number of SMEs believe Australia’s tax system to be fair – 37% compared to 32% that believe it to be unfair.
MYOB’s CEO, Tim Reed, says the results highlight that while business owners are managing with the current tax regulation, there’s more the Government could be doing to reduce the day-to-day burdens.
“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,” Reed says.
“Given the group’s prominence, there is a significant economic benefit for Australia if we enable SMEs to become more competitive via tax reform.”
According to the Business Monitor, 44% of business owners intend to take up the instant tax write off this financial year, while 30% have already purchased an asset and 14% intend to purchase an asset.
Reed is hopeful of some good news on the tax front for SMEs in the Federal Budget.
“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,” he says.
“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.”