Labor's promised simplification of the GST reporting and reconciliation process will result in some small businesses paying too much GST without recourse to reconciling their true tax liability, claims Small Business Minister Ian Macfarlane.
"(Shadow Treasurer) Mr (Simon) Crean's proposal has all the hallmarks of an ACTU leader's understanding of small business," he says.
"To offer all small businesses the ability to calculate GST liabilities using a ratio based on previous net GST paid, whilst Labor rolls back the GST, leaves open the possibility that small businesses will pay more GST than what their actual liability amounts to under a rolled-back GST.
"Under Labor's promised method, small business would have no way of knowing the degree of their overpayment because Labor will not allow small-business people the opportunity to complete an annual reconciliation."
To read more, including an example of how small business could be disadvantaged under the proposal, go to
bizreview.