MEDIA RELEASE 14 May 2019
Labor’s proposal to introduce a $3000 cap on the tax deductibility of fees from accountants if elected on May 18 will have an adverse effect on many small businesses in the local area according to Shoalhaven Business Chamber President, Jemma Tribe and Milton Ulladulla Business Chamber President, Robert Richards.
Opposition Leader Bill Shorten has claimed it’s necessary to stop the ‘rort’ for rich people but there are fears small business owners will get caught in the firing line.
“Many of our small business owners don’t even draw a wage from their business yet, they run out and buy petrol or groceries when they sell something in their shop but they still pay at least $3000 in accounting fees when seeking advice to set up or dissolve a business,” said Jemma.
“Others may have a one-off event happen in their life like the death of a family member, or divorce that can cause a one-off spike in their accounting bill.”
“If the fees are not tax deductible, they will have to cop that entire amount on the chin and work even harder while others around them get paid first,” added Jemma.
Robert Richards is a CPA and specialises in Family Businesses, he says more people will be affected by this than Labor might realise:
“I have worked as an Accountant in the region for many years and managed a family business before this, so I know firsthand how a policy like this would affect local business owners,” said Robert.
“Small business who are set up via discretionary trusts to protect family assets would have the added burden of being charged a tax rate the same as multinational companies under Labors proposals, so I do have a few concerns,” added Robert.
The Shoalhaven and Milton Ulladulla Business Chambers are appealing for this policy to be reconsidered ahead of the May 18 election – recognising that small businesses create significant employment opportunities in the local area and no one benefits from their demise.
For media opportunities call Jemma Tribe on 0413 050 992 or Robert Richards on 44459014