Contact: Gavin Clancy
Deloitte
Communications Manager
+61 3 9208 7759

Contact: Vessa Playfair
Deloitte
Director of Communications
+61 2 9322 7576

Contact: John Koutsogiannis
Deloitte
Tax Partner
+61 2 9322 7419

Small businesses will welcome the eased GST compliance measures announced in the Budget, but could get caught out if they don’t carefully plan for GST payments, according to Deloitte Tax Partner, Mr John Koutsogiannis.

Mr Koutsogiannis said changes to GST payments for some small businesses and non-profit organisations from quarterly to annually could inadvertently encourage small businesses to use GST payments to fund business operations when cash flow problems were encountered.

“This could lead to an increase in small business collapses come annual GST payment time,” Mr Koutsogiannis said.

“Additionally, small businesses with an annual turnover of less than $2million will now be able to apportion their private and business use of assets (such as computers and motor vehicles) annually for GST purposes, instead of quarterly or monthly.”

“As well, no annual re-election will be required for certain eligible entities wishing to continue with the GST instalment option, another positive for small business,” he said.