{"id":100885,"date":"2025-02-01T07:15:00","date_gmt":"2025-01-31T20:15:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=100885"},"modified":"2025-01-31T18:40:00","modified_gmt":"2025-01-31T07:40:00","slug":"cpa-australia-government-tax-debt-measures","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/cpa-australia-government-tax-debt-measures\/","title":{"rendered":"CPA Australia Urges Government to Reconsider Tax Debt Measures"},"content":{"rendered":"\n

CPA Australia<\/strong> has criticised the Australian government<\/strong>\u2019s proposed legislative change that would make interest charges on tax debt<\/strong> non-deductible. The professional body argues that this measure could disproportionately affect small businesses and struggling taxpayers while failing to effectively target those with high levels of tax debt. <\/p>\n\n\n\n

In a submission to the Senate Economics Legislation Committee<\/strong>, CPA Australia<\/strong> has urged the government to reconsider its approach and implement more targeted measures to encourage tax debt repayment<\/strong> without exacerbating financial difficulties<\/strong> for affected businesses.<\/p>\n\n\n\n

Concerns Over Financial Impact<\/h2>\n\n\n\n

In a submission to the Senate Economics Legislation Committee<\/strong>, CPA Australia outlined its opposition to the Treasury Laws Amendment (Tax Incentives and Integrity) <\/strong>Bill 2024, which includes measures to make GIC and the shortfall interest charge (SIC) non-deductible. The professional body argued that the measure would exacerbate financial hardship for small businesses and individuals<\/strong> who rely on these deductions to manage cash flow.<\/p>\n\n\n\n

According to CPA Australia<\/a> tax lead Jenny Wong<\/strong>, denying these deductions amounts to a broad and punitive approach<\/strong> rather than a targeted measure addressing high-tax-debt accounts<\/strong>.<\/p>\n\n\n\n

\u201cWith interest rates as high as they are, this will disproportionately affect businesses with cash issues, particularly sole traders on the highest marginal tax rate,\u201d Wong said.<\/p>\n\n\n\n

Impact on Small Businesses<\/h2>\n\n\n\n

CPA Australia warned that removing GIC and SIC deductions<\/a> could have a \u201cdevastating\u201d impact<\/strong> on small businesses, many of which already struggle to access affordable finance options. The body argued that while tax debt issues are concentrated in a small segment of taxpayers<\/strong>, the proposed measure penalizes a broader group, including generally compliant businesses<\/strong>.<\/p>\n\n\n\n

The organization highlighted several key concerns:<\/p>\n\n\n\n