Your Sydney small business accountant talks part 2 of the budget announcement
In part 2 of our budget summary that we’re providing to you as your Sydney small business accountant, we’ll discuss unfair contracts, fair work compliance and the future of ABN’s for small businesses.
In the budget, it was stated that unfair contracts are set to go. In the past, Australia has seen 1000’s of small businesses go under because of large companies taking advantage of SME’s. Both the government and the opposition have put their hand up to pledge that they will get rid of any unfair contracts terms that are used between large business and small businesses which currently allows SME’s to be taken advantage of. There are set to be large fines for any big businesses who fail to comply with the new rules.
Another announcement that seems to be an example of the government trying to simplify some red tape is the proposed change to the ABN system. The government is looking like it wants to simplify and scrap ABNs for life and introduce new reporting measures. It will work whereby ABN holders would have to provide income tax figures and update their details to the ATO every year.
Fair Work compliance was also outlined in the budget, with the Fair Work Ombudsman to be given $2.3 million each year to fund investigations and prosecution of sham contracts by employers. This is certainly a good step in protecting employees and employers who do the right thing.
In terms of red tape, it seems the government wants to support small businesses in their navigation of it, such as the creation of a Small Business Taxation Division within the Administrative Appeals Tribunal and a Small Business Concierge Service who will be able to provide tax-related advice and support through the Australian Small Business and Family Enterprise Ombudsman (ASBFEO).
As your small business accountant in Sydney, we’ve seen governments come and go, and we can say that there’s never been a time before now where small businesses get so much help, and given they’re the lifeline of Australia’s economy, it’s the right thing to do.
As your small business accountant in Sydney, we will provide part 3 of the budget announcement summary in our next article and how it impacts Australian small businesses.