SME Communicator - August 2011

Open books and housing affordability get forum members talking

Cash flow, management styles and housing affordability generated the most interest with SME Tax Forum members recently.

A discussion on cash flow management suggests this is an area under control for most members, but those who have occasionally been unable to make tax payments reported supportive and cooperative treatment at the hands of the ATO. For many, seeking support proactively - and early - is the key to managing any cash flow problems.

'Open book management' and its effectiveness as a way to engage employees within a business has been in the media recently so the forum asked members their views on this management style. Some members found this approach interesting, and already use it as a way to motivate staff. Others said it was a necessity when running a small-to-medium enterprise with small staff numbers. Others were not so impressed, raising confidentiality issues and also relevance in businesses where the majority are involved in hands-on duties where too much information could be a distraction.

A discussion on housing affordability - and a mooted solution of an inheritance tax - raised the hackles of some members with a number suggesting that government programs like the first home buyers grant distorted the market rather than assisted buyers and might even increase the price of housing.

And an inheritance tax? Feedback was strongly - and universally - opposed to the idea with some members suggesting a focus on simplifying the tax system would be more productive.

These discussions and many others are currently available for viewing on the forum by members.

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