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Taxation
Recommendations related to taxation matters focus on the following:
- that the Government adopts a concessionary rate of taxation for small business to assist and support this important employer
- that the important reforms highlighted in the Henry Tax Review be addressed in order to remove impediments to growth and entrepreneurial activity
- that the Fringe Benefits Tax (FBT) laws remain in need of urgent review in order to ensure that the regime is consistent with contemporary business practice and to reduce the cost of compliance. Significant business cost savings can be made with little impact on government revenues
- that the costs of financial planning advice fees be fully tax deductible. The Institute believes this measure would considerably increase consumer access to affordable financial advice and ultimately result in reduced consumer reliance on government-provided benefits on retirement.
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Superannuation
The IPA believes that superannuation policy will be enhanced with the application of demographic-centric policies. The level of interaction with superannuation is often reflective of demographic considerations. The Institute particularly supports more generous concessional contribution rules for older Australians.
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Legal privilege
The IPA believes that Australia should move into line with other industrialised nations by extending legal privilege to registered tax agents. This reform has also been recommended by the Australian Law Reform Commission.
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Standard Business Reporting
The Institute is a strong supporter of Standard Business Reporting (SBR) and its benefits for a range of stakeholders, particularly small business. We urge the Government to maintain adequate funding for the SBR initiative. As awareness grows, the rate of take-up will increase. The release of more SBR-enabled software, especially by larger vendors, will also favourably impact take-up levels.
