On Monday, Labor MP Andrew Leigh announced a proposal to fund 10 tax clinics across the country in an effort to assist micro-businesses and low income taxpayers in understanding their tax obligations.
The proposal envisions that each tax clinic will have volunteers, students and pro bono tax practitioners on hand to help low income taxpayers and micro-businesses with administrative tax matters, including completing tax returns and responding to queries raised by the Tax Office.
“We don’t see the clinics replacing the services of an accountant or bookkeeper, who can provide tailored and comprehensive small business advice,” ASBFEO Kate Carnell said on Wednesday.
“However, as around 88 per cent of businesses in Australia are micro-businesses, many would benefit from additional support in understanding their tax and superannuation obligations.”
Ms Carnell explained that small businesses struggle with the complexity and regular changes in the tax system, such as the proposed Single Touch Payroll reporting and Taxable Payments Reporting System.
“Add to this issues like the imposition of garnishee orders and the denial of Australian Business Numbers, as was highlighted in the Fairfax/Four Corners report this year, and you can see the value that free advice via tax clinics might provide,” she said.
Ms Carnell noted that each clinic’s practice manager would need to be skilled in both tax and the wider issues confronting small businesses to ensure that good tax advice is provided.
She underlined that it would be preferable if the clinics were established beyond the capitals, into the regional areas that are doing it tough, while also focusing on business people who have English as a second language.
“A secondary effect of the clinics is they will provide university students with hands-on experience with micro-business tax issues and an insight into the challenges of compliance by small businesses,” Ms Carnell said.
