Entrepreneurship, Innovation and Small Business A sketch in five slides May 2015.
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Transcript of Entrepreneurship, Innovation and Small Business A sketch in five slides May 2015.
Entrepreneurship, Innovation and Small BusinessA sketch in five slides
May 2015
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Small business is the engine room of the Australian economy
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Legal structures and compliance burdens
Small businesses operate as sole traders, partnerships, trusts, companies or a
combination of these. A small business may use a complex structure, including
trusts and companies, for a number of reasons, including tax.
Small businesses tend to pay more per dollar of turnover in tax compliance costs
than larger businesses. This limits money available to grow the business.
Medium to large
Small to medium
micro0
20
40
60
80
100
Tax compliance cost (per $1000 of turnover)
Tax compliance cost (per $1000 of turnover)
Innovation: benefits and risks
Innovation comes with risk and rewards. Companies engaged in innovation are more
than twice as likely to report increases in the total number of employees, but investing
in innovation can be risky. Unless it is appropriately designed, the tax system can
further discourage risk-taking, reduce investment and stifle innovation in the economy.
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Some of the existing measures to support innovation and small business
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The Budget takes the next steps ...
Getting tax settings right for small business is an important part of getting the
right environment for small businesses to prosper.