A recent study by the Institute of Public Affairs (IPA) showed red tape compliance was now so high small businesses were unable to grow.
This was having detrimental effect on business.
It suggested no consideration was given to employers when new rules were brought in.
Examples of recent changes resulting in red tape are:
- Single touch payroll
- TBAR reporting for Self-Managed Super Funds (SMSFs)
- Cap of $1.6 million on SMSFs
- Forcing everyone onto the cloud for MYOB, QuickBooks and Xero
- Extensive rules on loans and credit
- Crackdown on foreign investors
- Moving retirement ages and possible changes to franking credits
These are just a few changes flowing through and this doesn’t include changes to come from banking royal commission or aged care commission.
Small business is struggling to absorb this, and the Government’s answer is to ignore the issue.
If business can’t free itself, it can’t grow.
By Terry Murphy CPA
Last updated October 2018