SMALL businesses are likely to miss most of the confusion and changes that are coming with tax consolidation.
The Tax Consolidation regime is due to come into effect on July 1 and will be a major change for companies operating through group structures.
Most small businesses do not operate through such structures so they will be unaffected by the changes. This is fortunate because most small businesses put making profit well above dealing with tax issues.
PricewaterhouseCoopers partner John Murray said consolidation was likely to have a far bigger impact on the big end of town.
JGC Accounting director & Business News 40 Under 40 winner Justin Coppin does not expect it to have much of an impact on his client base.
“It will effect about 40 per cent of our clients but that impact will depend on the business those clients are involved in and the status of that industry,” Mr Coppin said.
“Some of our clients are saying that to pay tax would be a luxury.”
Mr Coppin said there were some serious planning issues that needed to be addressed in consolidation, but that most of his clients would only be prepared to pay money to deal with those when the laws change.
