Plenty of confusing reigns among small business owners over what tax concessions they are able to access, a survey by American Express reveals.
More than 1,000 small business owners were surveyed and just 13 per cent of them said they were completely up to speed with the existing tax breaks for small businesses, prompting that thousands of business owners may pay too much tax this financial year. The number was slightly higher at 21 per cent among those businesses that prepared their tax returns without the help of an accountant.
“From my experience one of the most common questions I get asked from small business owners is: ‘Is there something that we are missing out on in our tax?’ This research supports my belief that there are thousands of Australian business owners out there who are paying too much tax simply because they are not aware of what rebates and concessions they are legitimately entitled to,” Adrian Raftery, taxation expert and author, said.
“Learning what can be claimed as a business tax concession does not need to take up a lot of time, but it could save business owners a significant amount of money which could be ploughed back into the business.”
The survey results also show that tax reporting continues to be a source of stress for small business owners, with 83 per cent of business owners citing it as a stressful task.
However, looking towards the new financial year, most small business owners (78 per cent) are committed to improving the efficiency of their tax reporting. As many as 44 per cent of small business owners say their ‘new financial year resolution’ is to be more organised in filing their receipts and collating information throughout the year. Over one quarter (28 per cent) are confident they can improve their tax reporting with the help of their accountant or a business mentor.
“Even small measures can help make tax reporting more efficient, accurate and less stressful. I encourage all small business owners to stick to their resolution, stay more organised and seek the help of experts when they need it,” said Raftery.