MYOB CEO wants personal taxes lowered

MYOB CEO wants personal taxes lowered


Tim Reed
MYOB CEO wants personal tax rates lowered to help small businesses.

I’m an avid consumer of business, political and community news. When I read the news or assess debates I focus on the impact on Australia’s two million small and medium businesses. They are rarely front and centre in the minds of many protagonists.

So when I picked up the Business Council of Australia’s Action Plan for Enduring Prosperity, it was with a degree of hope and a sense of caution. I wondered if it would simply be a wish list for large corporations, whose interests at times can be directly at odds with the needs of small businesses.

Like the Three Musketeers, the BCA has taken an approach of “all for one and one for all”. The recommendations, grouped into “nine things to get right”, focus on what it will take to create a rising tide of economic health. The plan openly states there is a role for government to help businesses of all sizes.

I could only find one specific reference that seemed to really favour large corporations over small businesses - the call for company taxes to be lowered to 25 per cent when the Federal budget allows.

This stood out because while there are broad calls for taxation reform in other areas (the removal of inefficient taxes, the re-allocation of GST and a land tax), there is nothing as specific as this one request.

"Lowering personal tax rates would create more incentive for smaller businesses owners to continue being their own boss".

Company taxes are irrelevant to most small businesses, where the owners are usually taxed at the personal tax rate. While lowering the company tax rate may be a good thing for corporations and the economy, lowering personal tax rates would create more incentive for smaller businesses owners to continue being their own boss.

There is also a possible risk in that technology and the importance of high quality broadband (both upload and download speeds) isn’t given the attention it deserves in the plan. It isn’t even mentioned in the infrastructure section, yet it will be instrumental to achieving the productivity gains called for.

Similarly, the plan rightfully calls for closer cooperation and clearer, more productive state/Federal relationships – but it doesn’t really address how to achieve this.

Other than that, it is difficult to find flaws in the BCA’s recommendations and their likely impact on small and medium business. I have no doubt they would be well served if the recommendations were followed.

For the original article from WA Today click here.