Cutting red tape
Small business has told the Government that a key impediment to growth is unnecessary red tape and regulation.
As of March 2015, the Government has announced reforms to generate more than $2.45 billion in annual red tape savings for Australians.
These reforms include changes to the entry thresholds for Pay‑As‑You‑Go instalments, benefiting 447,000 small businesses.
To build on the Government's reforms to date, the Jobs and Small Business package provides key, additional red tape cuts so that small businesses will have more time to focus on growing and developing new ideas.
Cutting red tape is particularly important for small businesses because they experience a proportionately larger regulatory burden than larger businesses in the same industry.
The Government will reduce red tape within the Fringe Benefits Tax (FBT) system by expanding the FBT exemption for work‑related portable electronic devices. This will help small business employees stay connected in the digital economy.
Small businesses will also benefit from Capital Gains Tax rollover relief when changing their legal structures but keeping the same owners. That means that new businesses that discover they are using a legal structure that does not suit their needs are not stuck with that structure forever. This reduces risk and complexity and makes it easier for businesses to grow.
The Government will release a consultation paper on potential changes to the Corporations Act to reduce any unnecessarily burdensome or restrictive regulatory requirements for small businesses. This will make it easier for new and existing small business to operate as a company.
Small businesses are faced with a disproportionately higher red tape burden
Tax compliance costs per $1,000 turnover