Increase the tax-free threshold for small business owners on a rising scale up to $120,000 depending on the amount of staff they employ and the amount of GST they generate.
BENEFITS: Owners will be encouraged to show all income as this will improve the bottom line for things like: value of business, getting loans, business more salable.
Reduce the "Black economy".
They will be more likely to employ more staff therefore increasing payroll tax.
Sales will be higher therefore more GST collected.
It will reduce unemployment levels.
Encourage more people to be self-employed.
Give a more accurate picture of the economy.
Greater job satisfaction.
More pride in the business.
DOWNSIDE: Less personal income tax will be collected from tax returns of business owners.
Currently many small businesses generate more tax than they earn. Many earn less than some of their staff. They work longer hours. Collectively they employ about 46% of the workforce and generate about 93% of this countries GDP.
If we don't make it more profitable for small business owners this sector (the golden goose) of our economy will be reduced putting a lot more pressure on the government to reach their financial targets.