Virtual Business Show #008 – Business Tax Changes – Aust
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Over the past few months I’ve been blogging about some pretty scary proposed tax changes for small business – and independent contractors in particular. Should you care?
In this show I discuss what the changes are, what’s been going on behind the scenes that you may not have known about, and what you can do as a small business owner to have your views on the issue heard – before the proposed changes move into legislation and you miss the chance.
Resources and Links referred to in the show:
Australian Financial Review
Smart Company http://bit.ly/9mbBZP
Independent Contractors Australia - http://www.contractworld.com.au
ICA Summary – http://bit.ly/bghnBv
ICA boilerplate letter http://bit.ly/a1j6hm
Parliament of Australia Who’s Who http://www.aph.gov.au/whoswho/index.htm
eSOS Blog: http://blog.execstress.com/
Hi Dene – I can’t actually find you on my subscriber list so can’t determine how to break it up into Australian and other but will ask the powers that be here at Lifestyle Podnetwork whether there is a way to do so… unless you’re referring to some other email list? You’re not on my main list.
My excerpt does actually refer to Australian tax – I’ve updated the title of the podcast to include ‘Aust’.
by execva
on 05. Oct, 2010
So, if say a solicitor is forced to employ typists instead of contracting to them, presumably they’re better off to just seek out an overseas contractor. Consequently, virtual assistants will go the way of Australian manufacturing – ie lose out to overseas countries (especially those charging $2/hour). Why would they bother employing us when they can use overseas contractors?
by Suzanne
on 05. Oct, 2010
Lyn, it would be a good idea to separate your list by Austrialian subcribers and US or other subscribers. When I saw the subject heading for your email I started wondering “What the h…” and then realized that it’s for your local Aussie subscribers. Thank goodness! but it would save time if your list is segmented as possible
by Dene
on 05. Oct, 2010
[...] This post was mentioned on Twitter by Lyn Prowse-Bishop, Anita Kilkenny, Monika Newman, Carolyn Brown, Lyn Prowse-Bishop and others. Lyn Prowse-Bishop said: Proposed tax changes could spell end for small biz – Virtual Biz Show – http://bit.ly/cmjbUl [...]
by Tweets that mention Virtual Business Show #008 – Business Tax Changes | The Virtual Business Show -- Topsy.com
on 05. Oct, 2010
Well done, Lyn PB. A lot of work there and very well delivered.
Hopefully, you have started that groundswell. In my cynical way, I am not sure whether a regime that does NOT have a mandate to govern could or would enact such legislation. However, you have alerted that 90%+ of micro businesses of the situation in a very concise and informed report. Have you taken the message outside the VA (mums, grannies AND dads and gramps) sector?
by cheryl
on 05. Oct, 2010
I hope you’re right Cheryl – and perhaps we live to fight another day given the current administration is being kept busy by the Greens with minor policy matters!
And yes, via various social media, my blog and other groups I’ve been keeping lots of business sectors abreast of this issue since July. But that doesn’t mean others can pass this on!
by execva
on 05. Oct, 2010
Excellent point Sue and you are correct. If employers are forced to employ rather than outsource non-core admin tasks to an Australian VA then they won’t necessarily employ that VA (who is now out of business assuming the proposed changes go through and worst case scenario) but send their stuff off shore. If they don’t want to add to their on-cost burden, that will be their only option – whereas the unions currently seem to think the only option will be for them to employ the contractor. In reality that’s unlikely to happen.
by execva
on 05. Oct, 2010
Great information Lyn, very clearly explained. The snowballing effect if this is brought in could be catastrophic. Mums who are helping the household budget by working from home wont be able to>less income to meet mortgage payments>have to sell family home>trying to find rental accommodation, already at an all time low>having to work “outside” again – if there is a job to work at>cant afford to put kids in child care>rellys called on to look after kids. It is just not fair. Our livelihoods are at risk and it is the responsibility of each and every one of us to get the word out there to as many people and “powers that be” as possible how devastating it would be to the Australian economy if we independent contractors were no longer around. Great work Lyn and thank you for all your time and effort you have put into this. I for one am not going to sit around and have the effort I have put into building up my business wiped out because, basically, Unions want more members. No way.
by Sandy
on 05. Oct, 2010
Just a follow up Dene – on LPN I can’t ‘separate’ out subscribers because I’m not sure how people access the podcasts – I can on my own subscriber list but as mentioned you aren’t on there. So if a show is ‘country-specific’ I will include this in the title or excerpt so listeners will need to check that for themselves.
However, it is worth noting that even though this affects Australian independent contractors, savvy business owners will know that it’s worth knowing what’s going on in other countries because the administration in your own country IS looking at what other governments are doing – particularly in this post-global financial crisis era. I note last week the Obama administration just signed legislation cutting taxes and providing credit help for small businesses in an attempt to help them through the recession – something our own government did nearly 12 months ago.
Australia was one country that came out of the GFC particularly well so countries like the UK and US are looking at what our government did – and are doing. That includes the good … and the bad.
by execva
on 06. Oct, 2010
Absolutely Sandy – snowball effect is a good way to put it. And of course it’s not just the VA industry. Independent contractors are used everywhere – most predominantly in mining and construction. Over 2 million potentially affected.
Whilst I’m not convinced the government will move ahead with these proposed changes, the closed door, secret and ‘under-handed way this is being dealt with is concerning.
Being aware is vital, and having our voices heard now while there is time to have the greatest impact is critical.
by execva
on 06. Oct, 2010
Thank you Lyn for keeping us abreast of this terrible situation. I will be contacting my local MPs and doing my part to stand up for our rights to work as contractors. My husband has been contracting for 30 years, he & fellows like him are in the same position as our industry. It seems that the Unions who lost their power years ago when employees were given the right to choose to join the union or not, are now attempting to regain power by forcing small business out. What do they think will happen if the majority of small businesses are no longer able to trade. I cannot fathom their thinking, their philosophy. Thanks again Lyn.
by Kathleen
on 15. Oct, 2010
Thanks Kathleen! The Tax Summit is scheduled for June 2011 and the government are working on the agenda now so yes please do continue to send your concerns to your local MPs. We cannot become complacent about this.
by execva
on 15. Nov, 2010