34. Aren’t Small Businesses taxed enough?

34. Aren’t Small Businesses taxed enough?

Answer

There is no additional tax collected. Whether you are taxed too much compared to the taxpayer standing next to you who knows, I’m sure that’s a matter of personal opinion and not much else. There is certainly a lot of evidence that tradies do cashies to avoid tax altogether, that simply is fact. Expanding the tax base as proposed squeezes the ability to do that a bit but certainly doesn’t stop cheats totally. In the second phase of our tax reform - that will not see the light of day unless this does - we have that dealt to through a combination of  single tax rate, tax deductibility of home repairs and far better reconciliation of GST receipts. But that’s for the future. I think the important point here is that loopholes and tax cheating simply puts the burden on someone else. By hitting those really hard society is way better off.


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