Tax Leeway Just A Fair Go: Senator

Illawarra Mercury

Monday December 15, 2008

By Business Editor GREG ELLIS

ILLAWARRA-BASED Liberal senator Concetta Fierravanti-Wells is calling on the Federal Government to provide relief for small businesses in the Illawarra, to help them manage cash flow and maintain employment levels in the difficult economic environment.

Sen Fierravanti-Wells said small businesses in the area had told her how tough they were doing it and how their confidence levels had plummeted in 12 months.

She said they needed more support in such a difficult economic environment and called for the Government to create greater flexibility and fairness.

Suggestions include immediately adjusting the variation penalty levied by the Australian Taxation Office on PAYG instalments.

Sen Fierravanti-Wells said she would like to see small businesses in the Illawarra be able to revise their PAYG instalments without fear of a tax penalty at the end of the financial year.

The Coalition is calling on the Government to double the margin for error to 30 per cent for the 2008-09 financial year, to give small businesses more leeway in estimating their tax liability.

Sen Fierravanti-Wells said if the Australian Tax Office allowed a 30 per cent margin of error when adjusting their PAYG instalments, it would give small businesses more room to move before being penalised because of the economic downturn.

She said PAYG revisions were an important way for small businesses to manage cash flow. All they were seeking was flexibility and fairness.

© 2008 Illawarra Mercury

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