PETER STEFANOVIC:
Joining me live now is the Assistant Treasurer, Michael Sukkar. Michael, thanks for your time this morning. So how is this going to improve cashflow for small and medium businesses?
MINISTER SUKKAR:
Well, Pete, we’re making some very important changes for the GDP uplift instalment rates in effect from the next financial year. Rather than imposing a 10 per cent uplift rate, it will be 2 per cent, which in everyday parlance just means that small businesses, sole traders, will just be required to remit less in their PAYG throughout the year. That will mean better cashflow for them throughout the year as opposed to paying PAYG and then potentially reconciling it at the end of the financial year – some $1.85 billion so keeping that cash in the businesses during the year rather than remitting it as a PAYG instalment. Also, some really important changes around prefilling tax returns, ensuring that small businesses only have to complete documentation once by making some big investments in ATO IT systems that can match data and ultimately means small businesses are spending less time filling out paperwork for a state revenue office or for the ATO and more time on their businesses. So, more cash in their business and less paperwork in effect.
PETER STEFANOVIC:
Right but if you’ve got smaller instalments to pay throughout the year though, doesn’t that mean that you would have a higher payment to make at the end of the financial year to make up for that?
MINISTER SUKKAR:
Well, no because the point of lowering the instalment rate, Pete, is to make sure that that instalment rate better reflects the reality of the situation. So rather than overpaying through the year in PAYG and then claiming it back at the end of the year – which is an experience for many small businesses – you leave the cash in the business. To some extent, you’re right – the tax you pay is the tax you pay but if you have an instalment rate that is too high, in effect you are without that cash throughout the year through your PAYG. We think it’s better for that cash to stay in the business rather than coming out of the business and then going back in once you’ve reconciled your tax return. Again, keep the money in the business because that is ultimately what is there to invest in the growth of the business, invest in employees and we think will have a great impact on the economy.
PETER STEFANOVIC:
Just a couple of points that Anthony Albanese has made this morning that I want to get your reaction to. He says there will be no enquiry into the claims made by Kimberley Kitching because in his view, no complaint was made to him. What’s your reaction to that?
MINISTER SUKKAR:
Look, Pete, I was a friend of Kimberley, and a lot of people are grieving now. I was at her funeral where nearly 2,000 people were just a couple of days ago. I think, in the end, Kimberley deserves justice. I think her friends and her family have made that very clear, particularly the family and I think her family and their wishes deserve a lot of credit. As I said I think Kimberley does deserve justice and I think a review, an enquiry, is highly appropriate given what details we do know. I’m not going to breach any confidences of discussions I had with Kimberley, but I think it’s very well known the significant and enormous pressure she was under and the unpleasant experiences that she suffered. So that’s all I’ll say on it, Pete, other than I think Kimberley does deserve that justice and I think that just batting it away in the way that the Leader of the Opposition has really seems pretty heartless to me.
PETER STEFANOVIC:
Well, when he was very quick to call for one when it involved the Coalition, to be denying one now, is there a double standard here?
MINISTER SUKKAR:
Look, Pete, there’s no doubt that the hypocrisy is breathtaking but again, I’m really torn here because I was close with Kimberley and I think the opposition leader just has to do the right thing, I think Kimberley deserves justice. I’m flabbergasted at the heartlessness of the leader of the opposition’s response. That’s all I will really say, Pete.
PETER STEFANOVIC:
Okay. That’s Michael Sukkar, the Assistant Treasurer, live for us this morning. Thank you, Michael, we’ll talk to you soon.