Budget Impacts Hot Topics at Small Business Summit

  • May 13th, 2017 at 10:05 am

The Small Business Charter will bring, “fairness, security & opportunity” for SME’S.

On the back of Federal Treasurer Scott Morrison’s claim that the budget ‘choices are based on the principles of fairness security and opportunity’, The Small Business Summit will draw together key stakeholders to draft a history-making national Charter of Small Business to achieve just that for SMEs.

Financing Small Business & The Tax System Simplified for Small Business Enterprises (SME’s) are key topics of the Summit’s program that has attracted industry and government heavy hitters alike.

Director Business Development SME, Federal Government Export Credit Agency (EFIC) – Leela Hanson, will be joined by, a representative from the Australian Taxation Office (ATO), Southern Cross University’s – Professor Ian Eddie,  Anthony Cerantonio, from Forensic Accounting Group and Peter White – Executive Director, Finance Brokers Association of Australia (FBAA) in these workshops that are designed to draft a history-making national Charter of Small Business.

Anne Nalder, Founder/ CEO of Small Business Association of Australia, believes the two key finance topics are essential pillars to make a viable Charter and lasting impacts to the small business landscape in Australia.

“Financing SME’s is a struggle and current laws around investment and directors have made it extremely difficult for small business to attract investment,” she said.
“SME’s in Australia struggle to find the financial support they deserve and investors are too scared to back them with our current regulatory systems, while they have the same tax activities as BHP and Telstra.”

Ms Nalder believes Stock Brokers, Investment funds, Banks, Insurance Companies, Financial Planners, Accountants, Financial Advisors and Lawyers are all risk adverse.

“They no longer introduce their high net worth Individual (HNWI) clients to business opportunities with start-up SMEs due to the perceived legal liability of making such a referral.”

Peter White, Executive Director of the FBAA, believes small business is the key to our national economy and that there is a disconnect in dealing with this diverse body of commerce.

“For far too long people have misunderstood how to best transact with small business, while governments have not clearly understood the needs of this sector or how best to structure regulatory environments that are suitable to all parties,” he said.

“We see the Charter as a way to knit this together, to build cohesion and grow toward the creation of a unifying Act that everyone around the world can be guided by when conducting business with a SME in Australia.”

The Financial Small Business Pillar and workshop will focus on key aspects such as: the various forms of financing including grants, relieving the rules and attracting investment, opportunities and solutions, banking Letters of Credit in depth and other options, the emergence of Fintech and other alternative financiers, unacceptable bank practices and not overregulating emerging financiers.

The Tax System Simplified for SME’s Pillar will discuss current and simpler tax collection methods for SMEs, examine the benefits of a tax-free threshold up to a certain age and size for a period of 3/5 years, discuss the abolition of annual tax returns up to a certain age, income and size and the provision of a moratorium for SMEs to get their tax compliance up to date.
Ms Nalder believes that small businesses have difficulty enough in building and operating a successful enterprise without the imposition of non-profitable, complex and difficult, multiple, government tax collection activities.

“If a mistake is made, they can be fined heavily and hounded by the tax department. They have no money to fight, so generally they relent.”

“Small businesses should have a simple one tax treatment in a package which removes the daily, weekly and monthly load and allows for a professional accountant to access an acceptable fee annually. This single tax system would be calculated and established as a capped sum across the size and performance of the business, measured by employment numbers, turnover and profit.”

All attending including Small Business Owners and Government officials will all have a say on the topics, which will form the basis for a Small Business Charter of Australia.

The Summit that will be held 30-31 May at Southern Cross University, Gold Coast and for for further information or to attend please click here.