Small medium businesses will be waiting with bated breath for the simplification they so desperately need according to Mr David Pring, Deloitte Tax Partner.

“Currently Mid Cap companies including many private companies have to contend with the same complex tax system that applies to the top end of town. A simpler tax system with reduction of red tape that had been promised in recent years was announced as part of the Budget. The measures are to  be released by the end of 2009.”

SME’s would like to see a simpler system removing complex anti-avoidance provisions and doing away with double reporting of information to the ATO. To date the only concessions for small business apply to very small businesses with turnovers of less than $2 million or CGT concessions for businesses worth up to $6 mil.

The ATO guidelines for classify small medium sized enterprises as those with turnovers of less than $250 mil. It is one set of rules for the ATO and a much tighter set for business concessions.

A genuine review of business taxation will be good news for SMEs. if it adequately deals with the many levels of tax including State and Federal taxes. The government’s credentials will be tested in delivering on the execution of the reform announced.