Non-agency members
Members shared a range of concerns from their communities and broader networks. Small businesses can struggle with tax and super obligations, and once behind, recovery is difficult. Issues with Australian Taxation Office (ATO) payment plans were highlighted, defaults occur even when businesses try to pay early or extra, and perceived inconsistencies in approvals erode confidence.
Broader system and support services can cause confusion for small business. These include application of general interest charge remission, Single Touch Payroll, varying BPAY details across business activity statements and client accounts on online services, and conflicting call centre advice.
While affecting only a small number of small businesses, complex issues surrounding family trust election distributions are creating concern.
External pressures include rising retail crime, new state levies passed to tenants, and inconsistent compliance rules across states described as 'white tape' were identified as impediments to growth. State government schemes offering incentives in the health sector may negatively impact independent small businesses, particularly in rural regions, though the extent of this impact is not yet quantifiable.
Publicly available credit reporting is enabling fringe advisers to target vulnerable businesses with misleading claims, resulting in poor decision-making and economic coercion. Cash flow concerns persist, particularly with upcoming Payday Super requirements.
Positive feedback was given on the ATO Vulnerability Framework, with calls for practical guidance and consultation on Director Penalty Notices. The Indigenous small business community expressed appreciation for the ATO’s education initiatives and for involving community elders.
Women in small business
The Australian Chamber of Commerce and Industry (ACCI) provided an update on its Future Makers initiative, designed to advance gender equality in traditionally gender-segregated industries. The initiative aims to drive cultural and economic transformation by creating opportunities and resources that support women in business.
The ACCI platform provides a range of resources to assist women in small business or those starting out. These include an information hub featuring modules and toolkits, webinars and the upcoming Women in Small Business Summit scheduled for 18 March 2026 in Sydney, which will provide a platform to share insights and advocate for systemic change.
Payment strategy
The ATO provided an update on its 2025–26 Payment Strategy. The strategy uses a phased, risk-based approach:
- Support for vulnerable taxpayers through simplified engagement and faster referrals.
- Firm action for deliberate non-compliance.
Members supported these efforts but stressed the need for balanced communication – simplified content for small businesses and technical detail for professionals. Accessibility is key, if information is hard to find, businesses can struggle to identify available support and its relevance to their circumstances.
Members noted that non-engagement often arises from vulnerability rather than deliberate non-compliance, and misconceptions persist. For example, 'I work for myself, so I’m not a small business'. To address this, tailored education is required, ideally delivered by trusted third parties like tax practitioners, community groups, tax concierge services rather than by the ATO.
Members reaffirmed the importance of tone in communication. Since most small businesses are compliant, messaging should avoid framing non-compliance as the norm, as this reflects only a minority.
Small business income tax gap
The ATO reported key drivers of the small business income tax gap include post-COVID-19 economic impacts, cost-of-living pressures, societal attitudes, the shadow economy, and compliance complexity.
To address the tax gap, the ATO is focusing on deliberate non-compliance with enhanced media outreach targeting small businesses.
Members highlighted the importance of forming partnerships with platform providers to share data and educate users. Misconceptions persist – many individuals don’t realise they are classified as small businesses, often assuming 'I work for myself, so I’m not a small business'. This lack of awareness leads to compliance challenges. A future tax system that leverages digitalisation would improve transparency and make compliance easier, enabling small business owners to focus on running their businesses and less on navigating tax requirements.
Payday Super
The ATO confirmed that Payday Super becomes mandatory from 1 July 2026, requiring employers to pay superannuation at the same time as wages. The ATO reaffirmed its commitment to supporting small businesses in understanding the impacts of Payday Super.
Employers can start paying super more frequently now, and nearly 40% are already paying super contributions more often than the quarterly due date. However, members raised concerns about cash flow impacts, as immediate super payments may reduce liquidity for daily operations. Limited preparation time, only 8 months, to prepare for implementation, which may require reconfiguration of natural business systems. Members indicated that employers currently lack certainty that payments have been received after submission and suggested a mechanism is required to verify receipt.
Members emphasised that while the onus is on employers, there must be support from others in the ecosystem to enable an employer to comply with payday super, including software providers, funds, and clearing houses. This support needs to deliver practical solutions that ensure accessibility and timely transfer of funds into employees’ superannuation accounts, supporting employer compliance.
Small business litigation funding program closure
The ATO provided updates on dispute resolution options for small businesses, including alternative dispute resolution (ADR) pathways at audit, objection, and litigation stages. External services such as the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Tax Concierge Service and National Tax Clinics are available, and efforts are underway to improve website navigation for ADR information.
Members emphasised that small businesses need to feel genuine control in disputes. They stressed the importance of promoting external services like ASBFEO and National Tax Clinics to maintain fairness and trust.
Attendees
|
Organisation |
Members |
|---|---|
|
ATO |
Michael Morton (Co-chair), Small Business |
|
ATO |
Angela Allen, Small Business |
|
ATO |
Anna Longley, Frontline Risk and Strategy |
|
ATO |
Ben Kelly, Superannuation and Employer Obligations |
|
ATO |
Melinda Balkin, Small Business |
|
ATO |
Natasha Sekulic, Frontline Risk and Strategy |
|
ATO |
Rowan Fox, Individuals and Intermediaries |
|
ATO |
Tony Poulakis, Small Business |
|
Australian Automotive Aftermarket Association |
Lesley Yates |
|
Australian Chamber of Commerce and Industry |
Sushmitha Kasturi |
|
Australian Small Business and Family Enterprise Ombudsman |
Bruce Billson (Co-chair) |
|
Chartered Accountants Australia and New Zealand |
Karen Liew |
|
Direct Selling Association of Australia |
Nina Rossi |
|
Institute of Certified Bookkeepers |
Matthew Addison |
|
Institute of Public Accountants |
Tony Greco |
|
Rural Doctors Network |
Richard Colbran |
|
Small Business Debt Helpline |
Helen Davis |
|
Small Business Operator |
Angela Harlen |
|
Small Business Operator |
Donna Niazov |
|
Small Business Operator |
Lisa Dwyer |
|
Small Business Operator |
Paul Meissner |
|
Small Business Operator |
Shannon Smit |
|
Small Business Operator |
Tony Sama |
|
Supply Nation |
Kate Russell |
|
Treasury |
Anthony Seebach |
|
Treasury |
Jill Kitto |
|
UNSW Tax & Business Advisory Clinic |
Tony Martins |
Guests
|
Organisation |
Attendee |
|
|---|---|---|
|
ATO |
Andrew Orme, Objections and Review |
|
|
ATO |
Anita Challen, Frontline Risk and Strategy |
|
|
ATO |
Anthony Marvello, Small Business |
|
|
ATO |
Cassandra Franklin, Office of the Chief Tax Counsel |
|
|
ATO |
Rebecca Saint, Office of the Chief Tax Counsel |
|
|
ATO |
Tony Goding, Small Business |
|
|
ATO |
Travis Deane, ATO Corporate |
|
|
ATO |
Usha Narain, Superannuation and Employer Obligations |
|
Apologies
|
Organisation |
Member |
|---|---|
|
ATO |
Elissa Walker, Enterprise Solutions and Technology |
|
Australian Retailers Association |
Ben Cornel |
|
Australian Veterinary Association |
Moss Siddle |
|
Council of Small Business Organisations Australia |
Adele Sutton |
|
Indigenous Business Australia |
Chris Germain |
|
Real Estate Institute of Australia |
Shalini Raj |
|
Restaurant and Catering Industry Association |
Suresh Manickam |
|
Treasury |
Richard Maher |
|
UNSW Tax & Business Advisory Clinic |
Ann Kayis-Kumar |