Australian Government To Study Small Business Tax Burden

by Mary Swire, Tax-News.com, Hong Kong

08 November 2005

Australia's Board of Taxation is launching a new study to assess the impact of the regulatory burden and the costs of tax compliance on the nation's small businesses, Treasurer Peter Costello announced last week.

According to Mr Costello, the objective of the scoping study will be to analyse the main costs small businesses face in complying with taxes administered by the Australian Taxation Office, and identify the more important areas where compliance costs might be reduced.

"I have asked the Board to concentrate on the source of concerns of the small business sector," Mr Costello announced last week.

"The findings of the study will help with the Government’s ongoing efforts to reduce excessive tax compliance costs facing business, particularly the small business sector," he added.

The Board’s report will take into account:

• The purpose and object of the law;
• The relationship between taxpayer compliance costs and government administration costs;
• Costs incurred by business for non-tax reasons and any additional costs incurred by businesses or their advisors for tax reasons (tax compliance costs);
• Transitional costs and ongoing tax compliance costs;
• Taxpayer circumstances and commercial practices;
• Other legislation; and
• Any other matters the Board considers materially impact on small business tax compliance costs.

The Board is due to publish its final report during the second half of 2006, and may also release some preliminary findings in the interim.

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