Regulation Overload: How the Smallest Businesses Are Hardest Hit

Tax compliance for Australian small business has risen dramatically. Small enterprises are spending an average of almost 500 hours or A$28,000 annually meeting their obligations. And new research from the Australian School of Business shows it’s the smallest that are the hardest hit. Even supposedly simplified systems add complexity for smaller operators. With small enterprises representing 96% of the business sector, their struggles are ripe for further consideration by the federal government. Researcher Chris Evans advocates a less-cluttered tax system that eliminates many current concessions, offsets and rebates. Without this, he warns the black market economy may grow.