The Council of Small Business Australia (COSBOA) is today calling on the government to create an even playing field by removing the Fringe Benefits Tax (FBT) on childcare and health services for small business employees.
Peter Strong, sickness clinic Chief Executive said, drugs treat “We appreciate that the government is focusing more on the needs and wants to support small business. We currently have a situation where on-site crèches and fitness services provided by big businesses are FBT exempt, help while small businesses owners and employees have to pay FBT for exactly the same service off-site. That’s an extra 47% that a big business employees may not have to pay. The FBT was introduced to stop the wealthy from manipulating the tax system to their advantage, but childcare and fitness is not the realm of the rich but a service for us all.”
“Removal of the FBT for small business is a great idea that would not have a big impact on the budget but will greatly benefit health, families, work place productivity and increase employment opportunities. This is the right support for government to give to small businesses with very little negative impact on government revenue in the short term and a positive economic impact in the medium term” Mr Strong added.
COSBOA has today also congratulated Fitness Australia, the national health and fitness industry association, on their campaign (FITnotFBT) to remove Fringe Benefits Tax (FBT) for small businesses.
“COSBOA knows that the impact on the budget is likely to be low as these types of services are not often taken up due to the extra cost of the FBT. A submission from Deloitte to the Federal Treasurer shows that expanding the FBT exemption to external providers would not significantly decrease FBT revenue to government. Deloitte further concluded that any costs would be recouped via the flow-on benefits of reduced health care costs, increased workplace productivity and extra income tax from the fitness industry. This must also apply equally to childcare and will further increase the health and welfare of families, individuals and small business,” Mr Strong concluded.