The plight of small business owners will only improve if Australia?s first small-business commissioner is given the teeth to protect them from the power of big government, the sector?s peak lobby group says.
The federal government?s plan to appoint a small-business commissioner in the second half of 2012 was applauded by the Council of Small Business of Australia.
But chairman Ken Phillips said without the power to force government agencies to settle disputes with small business, the commissioner would be a ?toothless tiger?, having an advisory role with little impact on the sector.
?When small-business people do business with the government, the government is just about the worst in terms of screwing over small business people and there is, time and time again, plenty of examples of this,? he told ABC TV in an interview broadcast on Sunday.
?So if a small-business commissioner is really going to work, it needs to have teeth, and it needs to have that dispute resolution power for small-business people against large government.?
His comments came four days after Prime Minister Julia Gillard announced the creation of Australia?s first small-business commissioner to give a voice to the 2.7 million businesses in the sector, which employ almost five million people.
Ms Gillard said that from January 1, 2013 the office will advise small businesses about government policies and programs and act as an advocate for the sector within the government.
The announcement came as the Senate debated the government?s 30 per cent minerals resource rent tax, which includes a cut in the corporate tax rate from 30 per cent to 29 per cent for small businesses in 2012/13.
But only one-third of small businesses are incorporated, of which very few will benefit from the cut, Mr Phillips said.
?Effectively the only people who will get any benefit are the very high income earners.?
Nearly all small business people pay tax at personal tax rates rather than corporate tax rates, and if the government cared about the sector it would reduce tax rates for low-income earners, he added.
Other government measures meant those on incomes of between $50,000 and $75,000 will lose the small-business tax offset, and, in effect, face a 20 per cent tax hike, he said.
Article source: http://au.news.yahoo.com/thewest/business/a/-/national/13198159/small-business-chief-must-have-teeth/
Source: http://www.newstonews.com/2012/03/18/small-business-chief-must-have-teeth/
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