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Local tax attacks on the self-employed

Tuesday, March 18, 2014

We recently received an email from a construction contractor in Brisbane describing how his use of independent contractors has come under attack from tax officials. He’s been forced to use employees, resulting in a significant drop in productivity. Here’s his email and our comment.

In addressing these and related issues, we at ICA have most recently:
  • directly re-raised our concerns with the Small Business Minister, Bruce Billson.
  • had long discussions with senior tax officials about why their system is so damaging and fails to increase tax compliance (and in our view damages it).
We have been quite open in recommending:
With the Australian government about to launch its red tape reduction legislation, we hope that these reforms are included. But who knows?! See this increase in red tape reporting being dreamt up by Australian tax officials!
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