Published on 01 Jan 07
by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE
The Australian taxation landscape has never really come to terms with the concept of what it means to be a small business vis-à-vis small to medium sized businesses and larger businesses. Whilst various attempts have been made by successive governments to demonstrate that they have an understanding of what a small business is, tax initiatives in the SME sector have been ad-hoc and reactive in nature.
This article examines and evaluates the various approaches adopted in defining what is a small busines in Australia, and concludes that there are too many and varied definitions of the term small business. This has contributed to policy makers failing to properly identify and target relevant tax concessions in this sector. The Federal Government's proposed legislation to standardise the eligibility criteria for small business tax concessions is a (small) step in the right direction. What is clear, is that a change in approach is well overdue.
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