This will benefit the individual businesses and the community thanks to increased jobs, which in turn will create an increase in income tax revenue to bolster our country’s economy as a whole.
Sydney, New South Wales (PRWEB) November 05, 2013
Leading industry voice and Managing Director of Alliance Accounting has issued an urgent plea to the newly formed Liberal government led by Mr Tony Abbott. Mr George Germanos, a business accountant from Sydney, has called for a review of the taxation system to assist small businesses with high labour costs, before they drown under the weight of ever-growing tax debts.
As Mr Germanos reveals, “Many small businesses are finding it harder and harder to run their businesses, let alone attempt to thrive in today’s economic climate.”
“In particular those which are primarily labour intensive; most commonly found in the construction and manufacturing industries. These hard-working small businesses are struggling to meet their regular BAS and GST commitments, as unlike other expenses, labour does not have a GST component.”
In the opinion of Alliance Accounting, the lack of GST on wages can cause dire implications for small businesses with high labour costs, as they are unable to use it to offset the GST credits on their sales.
Mr Germanos further illustrates this point, saying, “If Company A earns $550,000 in sales and has a $550,000 wages component, then they will need to find $50,000 to pay for the GST on their sales as their wage expenses does not allow for a GST credit and is not able to be used offset the GST payable on the sales.”
“However, if Company B earns $550,000 in sales but has minimal wages and has other expenses which include GST that total $550,000, they are in a truly breakeven scenario. Company B will have nil to pay the Australian Tax Office as the GST credit on their expenses will cancel out the GST payable on their sales.”
Mr Germanos believes there is no time to waste and appeals directly to the newly elected Prime Minister, saying, “Mr Abbott, it’s time to stop hurting small businesses. It is crucial that the tax system is reviewed so small business is given the opportunity it needs to grow and thrive.”
“This will benefit the individual businesses and the community thanks to increased jobs, which in turn will create an increase in income tax revenue to bolster our country’s economy as a whole.”
To find out more about Alliance Accounting’s range of services, including their specialist advice for small business, visit: http://www.allianceaccounting.com.au.
About Alliance Accounting
Established in 2010, Alliance Accounting is proud to be a key business ‘partner’ for many of their clients. Specialising in matters of Business and Investing, the forward-thinking company not only assists clients in maintaining their business, but growing it to achieve their goals.
What’s more, they’re a Chartered Accounting firm backed by an industry leading membership body. Their office is further complimented by having a Director of Business who’s a Chartered Tax Adviser, Fellow of the Taxation Institute of Australia and a Justice of the Peace.
Alliance Accounting’s key strength is their ability to work as if they were in your position. They are business advisers from Sydney who go to great lengths to understand your business fully, in order to always offer the best possible advice. To learn more about Alliance Accounting, click here.