A Research Report on - Australian Taxation Office · A Research Report on: UNDERSTANDING THE SMALL...
Transcript of A Research Report on - Australian Taxation Office · A Research Report on: UNDERSTANDING THE SMALL...
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A Research Report on:
UNDERSTANDING THE SMALL AND MEDIUM
ENTERPRISE MARKET
Ref No. 19099 • 23 November 2010
Sweeney Contacts:
Aliza Sebel and David Barmer
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Table of Contents
Executive Summary .......................................................................................................................................................... 3
Introduction .................................................................................................................................................................. 20
Research Objectives ....................................................................................................................................................... 21 Methodology.................................................................................................................................................................. 23
Sample Characteristics .................................................................................................................................................... 25
THE DETAILED FINDINGS ................................................................................................................................................ 26
Section 1: The Global Financial Crisis ................................................................................................................................ 26
The Impact of the GFC .................................................................................................................................................... 27
Steps Taken to Overcome the Negative Impact of the GFC ................................................................................................... 29
Section 2: The Profile of the SME Sector ............................................................................................................................ 30
Profile of the SME Sector ................................................................................................................................................. 31
Section 3: Attitudes to the ATO and Taxation ..................................................................................................................... 33 Summary of Attitudes ..................................................................................................................................................... 34
Provides Me with the Information I Need............................................................................................................................ 35
Advice from the ATO Provides Me With Certainty to Manage Tax Affairs .................................................................................. 37
The ATO Does a Good Job in Educating and Informing ......................................................................................................... 39
The ATO Treats This Business Reasonably and Fairly............................................................................................................ 41
Section 4: ATO Products, Services, Tools and Channels ........................................................................................................ 43
Usage of ATO Products or Services in the Past 12 Months ..................................................................................................... 44
Perceived Usefulness of ATO Products/Services ................................................................................................................... 48
Channel Preference for Obtaining Information from the ATO ................................................................................................. 50
Section 5: Income Tax (PAYG) ......................................................................................................................................... 52 Is Business Part of the PAYG System? ............................................................................................................................... 53
Understanding of Income Tax (PAYG) Obligations ................................................................................................................ 54
Ease of Accessing Income Tax Information from the ATO...................................................................................................... 56
Need for More PAYG Information ...................................................................................................................................... 57
Recently Used Income Tax Information Sources .................................................................................................................. 58
How Could the ATO Better Assist SMEs with Income Tax (PAYG) Compliance?.......................................................................... 59
Section 6: Fringe Benefits Tax (FBT) ................................................................................................................................. 60
Incidence of Payment of FBT ............................................................................................................................................ 61
Understanding of FBT Obligations ..................................................................................................................................... 63
Understanding of FBT Obligations ..................................................................................................................................... 63 Ease of Accessing FBT Information from the ATO ................................................................................................................ 66
Need for More FBT Information......................................................................................................................................... 68
Recently Used FBT Information Sources ............................................................................................................................. 69
How Could the ATO Better Assist SMEs with FBT Compliance? ............................................................................................... 70
Section 7: Capital Gains Tax (CGT) ................................................................................................................................... 71
Incidence of Involvement with CGT ................................................................................................................................... 72
Understanding of CGT Obligations ..................................................................................................................................... 73
Ease of Accessing CGT Information from the ATO ................................................................................................................ 75
Need for More CGT Information ........................................................................................................................................ 76
Recently Used CGT Information Sources ............................................................................................................................ 77
How Could the ATO Better Assist SMEs with CGT Tax Compliance? ......................................................................................... 78 Usage of the “Guide to Capital Gains Tax” Publication .......................................................................................................... 79
Section 8: A Comparison of PAYG, FBT and CGT Results ....................................................................................................... 80
Understanding of Tax Obligations...................................................................................................................................... 81
Ease of Accessing Tax Information from the ATO ................................................................................................................. 82
Need for More Tax Information ......................................................................................................................................... 83
Recently Used Tax Information Sources ............................................................................................................................. 84
Section 9: Tax Compliance .............................................................................................................................................. 85
Attitudes Towards Tax Compliance – Summary ................................................................................................................... 86
The Complexity of Tax Laws Make Compliance Difficult ........................................................................................................ 87
It is the Responsibility of Owners and Directors to Ensure Their Business is Fully Compliant with Tax Obligations .......................... 89 Suggested Initiatives to Assist SME with Tax Compliance...................................................................................................... 91
Section 10: Broader Compliance Issues ............................................................................................................................. 92
Phoenix Activities ........................................................................................................................................................... 93
Corporate Governance .................................................................................................................................................... 94
International Dealings ..................................................................................................................................................... 96
Business Exist/Succession Planning ................................................................................................................................... 98
Trusts .......................................................................................................................................................................... 99
Capital Management ..................................................................................................................................................... 101
Section 11: External Tax Professionals – Usage and Satisfaction .......................................................................................... 104
Use of External Tax Professionals .................................................................................................................................... 105 Types of External Tax Professionals Used ......................................................................................................................... 106
Satisfaction with External Tax Professionals ...................................................................................................................... 107
APPENDIX 1: Trends in the Economic Health of the SME Sector (200 Employees or Less) Sourced from Sensis ® Business Index .. 108
APPENDIX 2: The Questionnaire ..................................................................................................................................... 116
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Executive Summary
One of the objectives of the Australian Taxation office (ATO) is to increase Small and Medium Enterprises
(SMEs) voluntary compliance with their tax obligations. Consequently, a national study was undertaken
amongst SMEs (segments; $2 to $10 million, $10 to $50 million, $50 to $100 million and $100 to $250
million) to understand their general compliance perceptions, knowledge and behaviour, and more
specifically, their understanding of Fringe Benefits Tax (FBT), Capital Gains Taxes (CGT) and Pay As You Go
withholding taxes (PAYG).
The findings are based on 1,000 telephone interviews with the person in the business who was best
informed about taxation matters.
For analysis purposes the data was weighted by turnover segment within state and Business Industry Code
to accurately mirror the characteristics of the national SME population.
In the pages to follow we highlight the key research findings. Where appropriate, comparisons are made
with the 2008 study.
Differences at the 95% significance level are highlighted in the charts in the body of the report. Those
higher than the total sample average are identified by a green circle; those lower than the total sample
average by a red square.
Setting the Scene: The Overall Australian SME Business Economic Environment
Long term quarterly tracking of the economic outlook in the SME sector (Source: Sensis ® Business Index)
shows that the level of business confidence fell dramatically through 2008 and early 2009. In February
2009 it reached the lowest level since the study began in 1993.
Since that time there has been a marked recovery and, while confidence remains short of its peak level,
most of the decline has been reversed.
The extent of the turnaround is evidenced by the response to the question about the Global Financial Crisis
(GFC) in this “Understanding the Small and Medium Enterprise Market” study conducted by Sweeney
Research on behalf of the ATO. Although approximately half the businesses reported that they were
adversely affected by the GFC, just 8% indicated that they had not yet recovered. One in twenty
businesses reported that the GFC benefited them while just over four in ten experienced no or minimal
impact…
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As shown below, larger SME enterprises were more likely to have been adversely affected by the GFC, but
also more likely to be recovering, with 57% in this segment reporting a negative impact but recovering
(versus the total market average of 42%).
Base: Total sample (1000)
Q13a Which of the following statements best describes the impact of the global financial crisis on this business?
The Impact of the Global Financial Crisis
Summary
Base: Total sample (1000)
Q13a Which of the following statements best describes the impact of the global financial crisis on this business?
The Impact of the Global Financial Crisis
Summary
It has had a negative impact and this business has
not shown any signs of recovery
It has had a negative impact but this business has
fully recovered or is recovering
It has had minimal or no impact
It has had a positive impact
It has had a negative impact and this business has
not shown any signs of recovery
It has had a negative impact but this business has
fully recovered or is recovering
It has had minimal or no impact
It has had a positive impact
44%
42%
8%
4%
62%
53%
56%
49%
51%
Total
negative
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q13a Which of the following statements best describes the impact of the global financial crisis on this
business?
The Impact of the Global Financial Crisis
by business size
Negative
but no
recovery
Negative
but
recoveringNo impact
Positive
impact
5%
4%
8%
9%
8%
57%
49%
49%
41%
42%
31%
42%
39%
45%
44%
TURNOVER SEGMENT
3%
2%
4%
4%
4%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
62%
53%
56%
49%
51%
Total
negative
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q13a Which of the following statements best describes the impact of the global financial crisis on this
business?
The Impact of the Global Financial Crisis
by business size
Negative
but no
recovery
Negative
but
recoveringNo impact
Positive
impact
5%
4%
8%
9%
8%
57%
49%
49%
41%
42%
31%
42%
39%
45%
44%
TURNOVER SEGMENT
3%
2%
4%
4%
4%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
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There were a number of different strategies employed by SMEs to overcome the negative impact of the
GFC. Cost cutting – like spending less and being more cost effective – was clearly the number one initiative
(27%), followed by cutting back on staff (13%). About one in ten referred to some form of restructuring or
diversification. Others took a more proactive rather than reactive stance by selling more (9%), advertising
more (7%) or working harder (6%).
Attitudes to the ATO
SME attitudes towards the ATO were canvassed via a series of agree/disagree statements. The results
indicate the ATO is highly regarded with respect to treating businesses fairly, communicating effectively on
tax affairs and providing ongoing education of the business community on taxation matters.
As shown overleaf…
91% perceive that the business is treated fairly and reasonably by the ATO;
76% concur that the ATO supplies the business with the information required to manage tax affairs;
71% agree that the ATO advice provides them with the certainty to manage the business‟ tax affairs; and
66% endorse the ATO‟s efforts in educating/informing the business community about taxation matters…
Base: Reported GFC as having a negative impact (456)
Q13b What strategies, if any, have you adopted to overcome the negative impacts of the global financial crisis?
Steps Taken to Overcome the Negative Impact of the GFC
Base: Reported GFC as having a negative impact (456)
Q13b What strategies, if any, have you adopted to overcome the negative impacts of the global financial crisis?
Steps Taken to Overcome the Negative Impact of the GFC
Working harder
More focused on the business/aware/cautious
Improving customer service
Advertise/more promotions
Getting new work/selling more
Internal restructure/diversifying
Cutting back on staff/not replacing staff
Cutting costs/ more cost effective/spend less
Working harder
More focused on the business/aware/cautious
Improving customer service
Advertise/more promotions
Getting new work/selling more
Internal restructure/diversifying
Cutting back on staff/not replacing staff
Cutting costs/ more cost effective/spend less
13%
9%
9%
7%
6%
6%
4%
27%
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As shown below, the vast majority in every segment agree with each of the statements. We note the $10
to $50 million dollar segment is more likely to affirm the ATO‟s activities in terms of providing information
for taxation management and educating/informing the business community about taxation matters.
The Tax Office does a good job in educating and
informing the business community about taxation
matters
The advice given by the Tax Office provides me
with the certainty I need to manage the tax affairs
of this business
The Tax Office provides me with the information I
need to manage the tax affairs of this business
The Tax Office treats this business fairly and
reasonably
The Tax Office does a good job in educating and
informing the business community about taxation
matters
The advice given by the Tax Office provides me
with the certainty I need to manage the tax affairs
of this business
The Tax Office provides me with the information I
need to manage the tax affairs of this business
The Tax Office treats this business fairly and
reasonably
Base: Total sample (1000)
Q6a I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following
Attitudes to the ATOSummary
Base: Total sample (1000)
Q6a I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following
Attitudes to the ATOSummary
8%
8%
75%
68%
63%
61%
19%
22%
27%5%
16% 6%
Agree strongly Agree Disagree/disagree strongly Don't know
Base: Total sample
Q6a I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following
Turnover
66%
71%
76%
91%
Total
Attitudes to the ATO by turnover segment
63%
70%
75%
90%
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million% Agree/Strongly Agree
71%
70%
77%
97%
68%
68%
75%
96%
82%
The Tax Office provides me with the
information I need to manage the tax
affairs of this business
73%
72%
93%
The Tax Office does a good job in
educating and informing the business
community about taxation matters
The advice given by the Tax Office
provides me with the certainty I need to
manage the tax affairs of this business
The Tax Office treats this business fairly
and reasonably
Base: Total sample
Q6a I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following
Turnover
66%
71%
76%
91%
Total
Attitudes to the ATO by turnover segment
63%
70%
75%
90%
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million% Agree/Strongly Agree
71%
70%
77%
97%
68%
68%
75%
96%
82%
The Tax Office provides me with the
information I need to manage the tax
affairs of this business
73%
72%
93%
The Tax Office does a good job in
educating and informing the business
community about taxation matters
The advice given by the Tax Office
provides me with the certainty I need to
manage the tax affairs of this business
The Tax Office treats this business fairly
and reasonably
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A more detailed analysis of the results suggest that those who deal with the ATO on a more regular basis
and are, themselves, financial professionals have a more positive view of the ATO. Clearly, interaction with
the ATO has the potential to enhance perceptions.
ATO Products, Tools, Services and Channels
Nearly 90% of SMEs accessed at least one ATO product/service in the past 12 months, most commonly the
website (79%). Close to half have accessed the business portal (47%) and online calculators and tools
(46%). In addition, over a third contacted the ATO on the business tax enquiries line (37%) and a quarter
used the legal database (25%). The table below summarises.
Base: Total sample
Q6a I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following*Respondent is Chief Financial Officer, Financial Controller/Director of Finance, Financial Manager, Accountant, Bookkeeper
75%
72%
83%
92%
Yes
*Financial
professional Past year ATO contact
72%
74%
82%
91%
Phone
69%
71%
78%
92%
Online
51%
65%
60%
85%
None
66%
71%
76%
91%
Total
Attitudes to the ATO by occupation status and ATO contact
No% Agree/Strongly Agree
57%
68%
70%
90%
The Tax Office provides me with the
information I need to manage the tax
affairs of this business
The Tax Office does a good job in
educating and informing the
business community about taxation
matters
The advice given by the Tax Office
provides me with the certainty I need
to manage the tax affairs of this
business
The Tax Office treats this business
fairly and reasonably
Base: Total sample
Q6a I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following*Respondent is Chief Financial Officer, Financial Controller/Director of Finance, Financial Manager, Accountant, Bookkeeper
75%
72%
83%
92%
Yes
*Financial
professional Past year ATO contact
72%
74%
82%
91%
Phone
69%
71%
78%
92%
Online
51%
65%
60%
85%
None
66%
71%
76%
91%
Total
Attitudes to the ATO by occupation status and ATO contact
No% Agree/Strongly Agree
57%
68%
70%
90%
The Tax Office provides me with the
information I need to manage the tax
affairs of this business
The Tax Office does a good job in
educating and informing the
business community about taxation
matters
The advice given by the Tax Office
provides me with the certainty I need
to manage the tax affairs of this
business
The Tax Office treats this business
fairly and reasonably
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Usage of ATO Products or Services in the Past 12 Months
Summary
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Usage of ATO Products or Services in the Past 12 Months
Summary
Used no Tax Office product
Tax Office online subscription feature
SME Communicator
SME Tax Forum
Tax Office legal database
Tax Office business tax enquiries line – 13 28 66
Online version of calculators/other tools
The Tax Office business portal, which businesses register to use
Tax Office website
Used no Tax Office product
Tax Office online subscription feature
SME Communicator
SME Tax Forum
Tax Office legal database
Tax Office business tax enquiries line – 13 28 66
Online version of calculators/other tools
The Tax Office business portal, which businesses register to use
Tax Office website
47%
46%
37%
25%
9%
3%
2%
13%
79%
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When comparing the ATO products and services used in 2010 with those used in 2008, the ATO website
remains the most popular product. The data also suggests that business portal and calculator usage has
increased in the past two years while use of the business tax enquiries line appears to be declining.
However, further analysis of the data reveals that telephone enquirers use the website extensively. Some
89% of those who have contacted the business tax enquiries line have also used the website. This
proportion is higher than that for non-telephone enquirers (74%). This suggests that the website is not a
substitute for the business tax enquiries line.
Base: Total sample 2008 (1068); 2010 (1000)
2008 - Q15 : I am going to name 9 key products, services, and tools the Tax Office provides for businesses.
Please indicate whether you have used each product, service, or tool before today.
20010 – Q10a: Have you used the following Tax Office products or services in the last 12 months?
Usage of ATO Products or Services
Comparison with 2008
Base: Total sample 2008 (1068); 2010 (1000)
2008 - Q15 : I am going to name 9 key products, services, and tools the Tax Office provides for businesses.
Please indicate whether you have used each product, service, or tool before today.
20010 – Q10a: Have you used the following Tax Office products or services in the last 12 months?
Usage of ATO Products or Services
Comparison with 2008
48%
38%
66%
33%
14%
79%
47%
46%
37%
25%
9%
92%
2008 ever used 2010 used last year
Tax Office online subscription feature
Tax Office legal database
Tax Office business tax enquiries line – 13 28 66
Online version of calculators/other tools
The Tax Office business portal, which businesses
register to use
Tax Office website
Tax Office online subscription feature
Tax Office legal database
Tax Office business tax enquiries line – 13 28 66
Online version of calculators/other tools
The Tax Office business portal, which businesses
register to use
Tax Office website
(637)(363)(1000)
2%
3%
9%
25%
46%
47%
79%
Total
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Usage of ATO Products or Services in the Past 12 Months?Cross Usage
5%
4%
18%
30%
55%
61%
89%
Have used the
business tax
enquiries line
Have not used the
business tax
enquiries line
1%SME Tax Forum
39%The Tax Office business portal, which
businesses register to use
2%
4%
22%
40%
74%
SME Communicator
Tax Office online subscription feature
Tax Office legal database
Online version of calculators/other tools
Tax Office website
(637)(363)(1000)
2%
3%
9%
25%
46%
47%
79%
Total
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Usage of ATO Products or Services in the Past 12 Months?Cross Usage
5%
4%
18%
30%
55%
61%
89%
Have used the
business tax
enquiries line
Have not used the
business tax
enquiries line
1%SME Tax Forum
39%The Tax Office business portal, which
businesses register to use
2%
4%
22%
40%
74%
SME Communicator
Tax Office online subscription feature
Tax Office legal database
Online version of calculators/other tools
Tax Office website
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The table below examines product/service usage by turnover segment, showing that the $10 million plus
businesses are more likely to use the business portal, website and legal database than their smaller
counterparts. The $100 to $250 million segment is also more likely to contact the ATO by phone.
Users of each product/service evaluated its usefulness in helping the business meet its tax obligations.
The most favourably evaluated products/services were the calculator (65% extremely/very useful) and the
business portal (64% extremely/very useful). The website follows though someway behind (50%). The
service which attracted the highest level of criticism was the business tax enquiries line (17% not useful).
Base: Product/service used *Note small sample size)
Q10c How would you rate the usefulness of [insert name of product/service] in helping this business meet its
tax obligations? Would you say [Insert Product Service] is…
Usefulness of ATO Products/Services
Summary
Base: Product/service used *Note small sample size)
Q10c How would you rate the usefulness of [insert name of product/service] in helping this business meet its
tax obligations? Would you say [Insert Product Service] is…
Usefulness of ATO Products/Services
Summary
SME Communicator *(35)
Tax Office business tax enquiries line (363)
Tax Office legal database (283)
SME Tax Forum *(26)
Tax Office online subscription feature (90)
Tax Office website (848)
The Tax Office business portal (527)
Online calculators/other tools (463)
SME Communicator *(35)
Tax Office business tax enquiries line (363)
Tax Office legal database (283)
SME Tax Forum *(26)
Tax Office online subscription feature (90)
Tax Office website (848)
The Tax Office business portal (527)
Online calculators/other tools (463)
24%
12%
11%
14%
17%
7%
12%
47%
40%
38%
35%
30%
21%
29%
15%
31%
31%
41%
46%
40%
48%
45%
50%
8%
11%
17%
7%
13%
19%
18%
4%
Extremely useful Very useful Fairly useful Not too/not at all usefull Don't know/Can't say
(101)(193)(300)(406)(1000)
13%
9%
37%
2%
3%
46%
25%
79%
47%
Total
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Usage of ATO Products or Services in the Past 12 Monthsby turnover segment
14%
9%
37%
3%
3%
46%
24%
77%
45%
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million
4%
11%
45%
1%
3%
39%
37%
94%
68%
4%
6%
36%
2%
3%
51%
37%
92%
62%
36%Tax Office business tax enquiries line
12%Tax Office online subscription feature
8%None used
88%Tax Office website
3%
4%
44%
30%
55%
SME Tax Forum
SME Communicator
Online version of calculators/other tools
Tax Office legal database
The Tax Office business portal
(101)(193)(300)(406)(1000)
13%
9%
37%
2%
3%
46%
25%
79%
47%
Total
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Usage of ATO Products or Services in the Past 12 Monthsby turnover segment
14%
9%
37%
3%
3%
46%
24%
77%
45%
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million
4%
11%
45%
1%
3%
39%
37%
94%
68%
4%
6%
36%
2%
3%
51%
37%
92%
62%
36%Tax Office business tax enquiries line
12%Tax Office online subscription feature
8%None used
88%Tax Office website
3%
4%
44%
30%
55%
SME Tax Forum
SME Communicator
Online version of calculators/other tools
Tax Office legal database
The Tax Office business portal
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Trend data on usefulness is provided below. Although ratings are not strictly comparable due to the use of
a 0 to 10 rating scale in the 2008 study, the rank order is entirely consistent.
Analysis by turnover segment indicates that the business portal is perceived to be more useful by the
smaller enterprises ($2 to $10 million and $10 to $50 million); the calculators were also more favourably
evaluated by those in the $2 to $10 million segment while the legal database attracts higher ratings
amongst the largest enterprises. Website ratings do not differ significantly by turnover segment.
36%
65%
38%
50%
64%
Total
Base: Product/service used (variable)
Note: * Small base
Q10c How would you rate the usefulness of [insert name of product/service] in helping this business meet its
tax obligations? Would you say [Insert Product Service] is…
Usefulness of ATO Products/Servicesby turnover segment
37%
66%
38%
50%
65%
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million% Extremely/Very Useful
30%
*57%
46%
51%
54%
33%
56%
34%
44%
49%
32%Tax Office business tax enquiries line
51%Tax Office website
57%
38%
61%
Online version of calculators/other tools
Tax Office legal database
The Tax Office business portal
36%
65%
38%
50%
64%
Total
Base: Product/service used (variable)
Note: * Small base
Q10c How would you rate the usefulness of [insert name of product/service] in helping this business meet its
tax obligations? Would you say [Insert Product Service] is…
Usefulness of ATO Products/Servicesby turnover segment
37%
66%
38%
50%
65%
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million% Extremely/Very Useful
30%
*57%
46%
51%
54%
33%
56%
34%
44%
49%
32%Tax Office business tax enquiries line
51%Tax Office website
57%
38%
61%
Online version of calculators/other tools
Tax Office legal database
The Tax Office business portal
2008 vs. 2010
Perceptions of Usefulness – Research Order
2008 vs. 2010
Perceptions of Usefulness – Research Order
Business enquiry line
Online subscription
Website
Business portal
Online calculators
2008
Business enquiry line
Online subscription
Website
Business portal
Online calculators
2008
Business enquiry line
Online subscription
Website
Business portal
Online calculators
2010
Business enquiry line
Online subscription
Website
Business portal
Online calculators
2010
= rated
LOWEST RATED
HIGHEST RATED
Page 11 of 116
The most preferred channel for ATO information is clearly the website – nominated by 52% overall rising
to over 60% of the $10 million dollar plus turnover segments.
Channel preference trends since 2008 suggest greater appeal of the business portal where preference has
risen from 5% to 16%. The business tax enquiries line has also shown a lift in popularity (up seven
percentage points) whilst preference for paper mail has declined from 10% to 4%.
1%N/AThrough Tax Office seminars provided by the Tax Office
6%12%Email from/to the Tax Office
4%10%Paper mail from/to the Tax Office
16%5%Tax Office business portal, which businesses register to use
17%10%By calling the Tax Office 13 28 66 business enquiry line
Base: Those who nominated one of the above
Q11. For this business, what is the most preferred method of obtaining tax information from the Tax Office?
Channel Preference for Obtaining Information from the ATOTrends
2010
(900)
2008
(619)
0%
58%
N/A
62%
By visiting the Tax Office
Tax Office website
1%N/AThrough Tax Office seminars provided by the Tax Office
6%12%Email from/to the Tax Office
4%10%Paper mail from/to the Tax Office
16%5%Tax Office business portal, which businesses register to use
17%10%By calling the Tax Office 13 28 66 business enquiry line
Base: Those who nominated one of the above
Q11. For this business, what is the most preferred method of obtaining tax information from the Tax Office?
Channel Preference for Obtaining Information from the ATOTrends
2010
(900)
2008
(619)
0%
58%
N/A
62%
By visiting the Tax Office
Tax Office website
Channel Preference for Obtaining Information from the ATO
Summary
Base: Total sample (1000)
Q11. For this business, what is the most preferred method of obtaining tax information from the Tax Office?
Tax Office website
By calling the Tax Office 13 28 66 business enquiry line
Tax Office business portal, which businesses register to use
Email from/to the Tax Office
Paper mail from/to the Tax Office
Through Tax Office seminars provided by the Tax Office
By visiting the Tax Office
No preference
15%
14%
5%
4%
1%
0%
10%
52%
Page 12 of 116
Specific Taxes
In the pages to follow we highlight key results for each of the PAYG, FBT and CGT taxes.
PAYG
PAYG data is based on the 93% of businesses which have PAYG obligations.
In terms of knowledge levels PAYG is well understood with 94% indicating they understand PAYG
obligations well or very well.
The vast majority, 74% can easily access the required information from the ATO.
Base: PAYG Businesses (935)
Q7b Overall, how well do you understand this business‟s PAYG obligations?
Understanding of PAYG Obligations Summary
Base: PAYG Businesses (935)
Q7b Overall, how well do you understand this business‟s PAYG obligations?
Understanding of PAYG Obligations Summary
Not at all
well
1%
Well
35%
Not very
well
5%
Very well
59%
Base: PAYG Businesses (935)
Q7b Can you easily get the income tax information that you need from the Tax Office?
Ease of Accessing of PAYG Information from the ATOSummary
Base: PAYG Businesses (935)
Q7b Can you easily get the income tax information that you need from the Tax Office?
Ease of Accessing of PAYG Information from the ATOSummary
Not easily
10%
Not sure
7%
Not
required
9%
Easily
74%
Page 13 of 116
Some 27% expressed a desire for more ATO sourced PAYG information with those in the $10 to $50 million
and $50 to $100 million segments a little more likely to do so.
Recently used PAYG information sources reveal that the ATO and external tax professionals are almost
equally likely to be used. Some 68% have used one or more of the main ATO information sources (ATO
website, business portal or call centre) and 70% have used accountants or tax agents.
Base: PAYG Businesses (935)
Q8d. Would you like more income tax information from the Tax Office?
Requirement for More Information on PAYG
by turnover segment
Base: PAYG Businesses (935)
Q8d. Would you like more income tax information from the Tax Office?
Requirement for More Information on PAYG
by turnover segment
$100 to $250 million turnover (95)
$50 to $100 million turnover (183)
$10 to $50 million turnover (277)
$2 to $10 million turnover (380)
Total (935)
$100 to $250 million turnover (95)
$50 to $100 million turnover (183)
$10 to $50 million turnover (277)
$2 to $10 million turnover (380)
Total (935)
25%
33%
32%
19%
27%
Base: PAYG Businesses (935)
Q9e Which of the following sources, if any, have you recently used for information on Income Tax?
Recently Used PAYG Information SourcesSummary
Base: PAYG Businesses (935)
Q9e Which of the following sources, if any, have you recently used for information on Income Tax?
Recently Used PAYG Information SourcesSummary
No information on PAYG required
Tax Office call centre
Industry or professional body to which you belong
Tax Office business portal, which businesses register to use
Tax Office website
Tax professional such as an accountant or tax agent
No information on PAYG required
Tax Office call centre
Industry or professional body to which you belong
Tax Office business portal, which businesses register to use
Tax Office website
Tax professional such as an accountant or tax agent
60%
29%
18%
17%
6%
70%
Used at least one ATO
source: 68%
Page 14 of 116
FBT
FBT data is based on businesses which usually pay FBT – 44% of the total sample.
Those who pay FBT were asked how well they understood their FBT obligations. Whilst most understood
these „well‟ or „very well‟ a sizeable 17% admit to limited or no understanding.
Sixty-one percent indicated it was easy to access the requisite information from the ATO. However, if we
exclude the „not sure‟ and „not required‟ we see that 84% find the information easy to obtain and 16% find
it not easy.
Base: Business pays FBT (603)
Q7b Overall, how well do you understand this business‟s FBT obligations?
Understanding of FBT Obligations Summary
Base: Business pays FBT (603)
Q7b Overall, how well do you understand this business‟s FBT obligations?
Understanding of FBT Obligations Summary
Not at all
well
5%
Well
39%
Not very
well
12%Very well
45%
Base: Business pays FBT (603)
Q7b Can you easily get the FBT information from the Tax Office that you need?
Ease of Accessing of FBT Information from ATOSummary
Base: Business pays FBT (603)
Q7b Can you easily get the FBT information from the Tax Office that you need?
Ease of Accessing of FBT Information from ATOSummary
Not easily
11%
Not sure
12%
Not
required
16%Easily
61%
Page 15 of 116
Forty percent would like more FBT information from the ATO rising to 48% amongst the $10 to $50 million
turnover businesses and 46% of the $100 to $250 million segment.
Recently used FBT information sources reveal that external tax professionals are more widely used than the
ATO. In total 59% have used one or more of the main ATO information sources (ATO website, business
portal or call centre) and 74% a tax professional.
Base: Pay FBT
Q7d. Would you like more information on FBT from the Tax Office?
Requirement for More Information on FBT
by turnover segment
Base: Pay FBT
Q7d. Would you like more information on FBT from the Tax Office?
Requirement for More Information on FBT
by turnover segment
$100 to $250 million turnover (101)
$50 to $100 million turnover (193)
$10 to $50 million turnover (300)
$2 to $10 million turnover (406)
Total (603)
$100 to $250 million turnover (101)
$50 to $100 million turnover (193)
$10 to $50 million turnover (300)
$2 to $10 million turnover (406)
Total (603)
38%
48%
42%
46%
40%
Base: Business pays FBT (603)
Q7e Which of the following sources, if any, have you recently used for information on FBT?
Recently Used FBT Information SourcesSummary
Base: Business pays FBT (603)
Q7e Which of the following sources, if any, have you recently used for information on FBT?
Recently Used FBT Information SourcesSummary
No information on FBT required
Seminars/ courses/ training, workshops, various providers
Tax Office call centre
Industry or professional body to which you belong
Tax Office business portal, which businesses register to use
Tax Office website
Tax professional such as an accountant or tax agent
No information on FBT required
Seminars/ courses/ training, workshops, various providers
Tax Office call centre
Industry or professional body to which you belong
Tax Office business portal, which businesses register to use
Tax Office website
Tax professional such as an accountant or tax agent
54%
21%
21%
7%
2%
5%
74%
Used at least one ATO
source: 59%
Page 16 of 116
CGT
CGT data is based on businesses which have filed a CGT return in the past financial year and/or intend to
do so in the next two years. In total 31% of the sample qualified on one or both of these criteria.
Understanding of CGT obligations is not particularly high, with 33% saying that they understood this area
not at all or not very well.
Fifty-seven percent indicated it was easy to access CGT information from the ATO and 16% said that this
was not easy. Excluding the „not sure‟ and „not required‟, 78% find the information easy to obtain and 22%
not easy.
Base: Business pays CGT (263)
Q8cb Overall, how well do you understand this business‟s CGT obligations?
Understanding of CGT Obligations Summary
Base: Business pays CGT (263)
Q8cb Overall, how well do you understand this business‟s CGT obligations?
Understanding of CGT Obligations Summary
Not at all
well
6%
Well
42%Not very
well
27%
Very well
25%
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years (263)
Q8d Can you easily get the CGT information from the Tax Office that you need?
Ease of Accessing of CGT Information from ATOSummary
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years (263)
Q8d Can you easily get the CGT information from the Tax Office that you need?
Ease of Accessing of CGT Information from ATOSummary
Not easily
16%
Not sure
16%
Not
required
11%
Easily
57%
Page 17 of 116
Thirty-five percent requested more ATO sourced CGT information, rising to 46% in the $100 to $250 million
segment and falling to 25% in the $50 to $100 million segment.
External tax professionals are more widely used than the ATO for CGT information. Forty-seven percent
have recently used one or more of the ATO information sources (ATO website, business portal or call
centre) for CGT, whilst 74% have used tax professionals.
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years
Q8d. Would you like more information on CGT from the Tax Office?
Requirement for more information on CGT
By turnover segment
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years
Q8d. Would you like more information on CGT from the Tax Office?
Requirement for more information on CGT
By turnover segment
$100 to $250 million turnover (27)
$50 to $100 million turnover (38)
$10 to $50 million turnover (73)
$2 to $10 million turnover (125)
Total (263)
$100 to $250 million turnover (27)
$50 to $100 million turnover (38)
$10 to $50 million turnover (73)
$2 to $10 million turnover (125)
Total (263)
35%
40%
25%
46%
35%
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years (263)
Q7e Which of the following sources, if any, have you recently used for information on CGT?
Recently Used CGT Information SourcesSummary
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years (263)
Q7e Which of the following sources, if any, have you recently used for information on CGT?
Recently Used CGT Information SourcesSummary
No information on CGT required
Other
Tax Office call centre
Tax Office business portal, which businesses register to use
Industry or professional body to which you belong
Tax Office website
Tax professional such as an accountant or tax agent
No information on CGT required
Other
Tax Office call centre
Tax Office business portal, which businesses register to use
Industry or professional body to which you belong
Tax Office website
Tax professional such as an accountant or tax agent
41%
14%
12%
8%
1%
11%
74%
Used at least one ATO
source: 47%
Page 18 of 116
Tax Compliance
Whilst the vast majority perceive that the complexity of tax laws makes compliance difficult there is
widespread recognition that businesses must take full responsibility for compliance.
In response to the question (no. 21):
“Apart from reducing the level of tax, what is the one thing the Tax Office could do to assist
you or this business with compliance?”
The most frequent suggestions were:
simplifying the process, legislation and reporting requirements
simpler and clearer communications/information from the ATO.
Compliance Issues
The study also examined a range of compliance issues relating to Phoenix Activities, Corporate Governance,
Capital Management, International Dealings, Succession Planning and Trusts. The most salient findings
were:
34% are aware of ATO initiatives targeting Phoenix businesses and there is virtually unanimous support
for ATO intervention. However, views are polarised on the ATO‟s effectiveness in this regard – 32% agree
that they are doing a good job; 39% disagree
Almost all agree that they have a good knowledge of Corporate Governance responsibilities (92%) and
that tax compliance is a part of Corporate Governance responsibilities (96%). However, views are more
mixed on the issue of whether Corporate Governance offers any benefits to the business. Whilst 35%
believe that it does not and is merely an administrative burden, 60% view it as good business practice
Base: Total sample (1000)
Q6a Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Attitudes to Compliance Summary
Base: Total sample (1000)
Q6a Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Attitudes to Compliance Summary
31%
48%
65%
20%
2%
26%
Agree strongly Agree Disagree/disagree strongly Don't know
It is the responsibility of owners and directors to
ensure their business is fully compliant with tax
obligations
The complexity of the tax laws makes it difficult for
businesses to comply with their tax obligations
It is the responsibility of owners and directors to
ensure their business is fully compliant with tax
obligations
The complexity of the tax laws makes it difficult for
businesses to comply with their tax obligations
Page 19 of 116
Some 40% of businesses have a Succession Plan in place and eight in ten of these indicate that the
plan includes taxation consequences/obligations
In terms of Capital Management 73% are aware that use of capital of shareholders is subject to income
tax. However, many are unaware of any initiatives which can be taken to avoid tax implications.
External Tax Professionals
Ninety percent of SMEs use external professionals – most commonly accountants (88%), tax agents (31%)
and bookkeepers (10%). Trends since 2008 corroborate these results with accountants being by far and
away the most widely utilized professionals followed someway behind by tax agents and then bookkeepers.
Satisfaction with tax professionals is high with only 1% indicating dissatisfaction to any extent. Accountants
and tax agents are evaluated comparably and more favourably than bookkeepers.
* * * * *
In Summary
The results of this study indicate:
The ATO is well regarded in facilitating voluntary compliance by providing reliable advice and ongoing
education/information on taxation matters. It is also perceived to be fair and reasonable in dealing with
compliance issues.
The ATO website is the most widely used product/service and is the preferred source for obtaining
information from the ATO. However, the business tax enquiries line remains a vital interface with
businesses.
Specialist tools like the calculators and the business portal which offer more streamlined efficient dealings
are likely to become an increasingly important part of the ATO‟s communications portfolio.
There appears to be a requirement for easily accessible and simplified communications on the more
complex taxes – FBT and CGT from the ATO – a role that is currently being filled by accountants and tax
agents to a considerable extent.
Despite the perception that the complexity of tax laws increases the difficulty of compliance, the business
community clearly understands its responsibilities to comply fully with tax obligations. Any initiatives by
the ATO to simplify and streamline processes and communications would further enhance voluntary
compliance by SMEs.
Page 20 of 116
Introduction
The ATO’s business objective is to optimise voluntary
compliance and instil confidence in the tax system amongst the
SME market segment.
The ATO has the understandable aim of increasing SMEs‟ voluntary compliance with their tax obligations.
To help achieve this objective, the ATO requires a detailed and ongoing understanding of SMEs‟
perceptions, attitudes and behaviours to maximise the effectiveness of compliance related educational,
product and communication initiatives.
Research in this area was last conducted in 2008. However, since that time the Global Financial Crisis has
had a major impact on SMEs in terms of the health of the balance sheet and the potential ramifications for
taxation compliance and lodgement.
In late 2009, Sweeney Research was commissioned to undertake a new study to examine attitudes and
behaviour in the SME sector to provide the ATO with insights to optimise voluntary compliance amongst
businesses.
This project provides the findings of this research which are based on a total of 1,000 telephone interviews
with taxation decision-makers in SMEs within the following four turnover segments: $2 - $10 million; $10 –
$50 million; $50 - $100 million and $100 - $250 million.
Page 21 of 116
Research Objectives
The purpose of the research was to examine the following issues for each of the four turnover
segments:
Overall Research
Objective
To optimise SMEs voluntary compliance with tax obligations by
understanding their education and information requirements; channel
preferences for receiving information from the ATO; usage and usefulness
of ATO products/services. This was explored within the context of the
impact of the GFC.
General Attitudes
Towards the ATO
A series of agree/disagree statements exploring…
The quality of information provided to businesses
Educating the business community on taxation
Fairness and reasonableness.
ATO Products, Services
and Tools
ATO products/services in the past 12 months.
(For each used) Rating of usefulness in terms of helping the business meet its tax
obligations.
Preferred channel for receiving information from the ATO.
Income Tax (PAYG)
Perceived understanding of obligations.
Ease of accessing Income Tax information from the ATO.
Requirement for more Income Tax information from the ATO.
Recently used Income Tax information sources.
Suggestions for improvements on Income Tax.
How could the ATO office improve advice/support to businesses on Income Tax
compliance?
Fringe Benefits Tax
(FBT)
Perceived understanding of obligations.
Ease of accessing FBT information from the ATO.
Requirement for more FBT information from the ATO.
Recently used FBT information sources.
How could the ATO improve advice/support to businesses on FBT compliance?
Capital Gains Tax
(CGT)
Perceived understanding of obligations.
Ease of accessing CGT information from the ATO.
Requirement for more CGT information from the ATO.
Recently used CGT information sources.
Usage, usefulness and ease of navigating Guide to Capital Gains Tax publication.
How could the ATO improve advice/support to businesses on CGT compliance?
Professional and
Business Associations
Personal and business memberships.
Page 22 of 116
External Tax
Professionals
Usage of and satisfaction with the quality of advice provided by external
professionals.
Global Financial Crisis
What has been the impact on the business?
(If negative) What strategies, if any, have been adopted to overcome the negative
impacts?
A number of additional topic areas related to attitudes, knowledge and behaviour with respect to
compliance were briefly canvassed…
Phoenix activities
Corporate Governance
Compliance
International dealings
Business exits/succession planning and tax consequences
Trusts
Capital management.
In Appendix 1 an analysis of the economic health of the SME sector is provided, sourced from the Sensis ®
Business Index, a quarterly survey undertaken for Sensis by Sweeney Research since 1993.
Appendix 2 contains the questionnaire.
Page 23 of 116
Methodology
A telephone (CATI) survey of 1,000 SMEs was conducted nationally from 29th March to 13th April 2010.
The target respondent was defined as „the person in the business best able to comment on taxation
matters‟.
The ATO provided the sample frame for the study.
Quota controls were applied by turnover segment as follows:
Turnover Segment
$2M to $10M 400
$10M to $50M 300
$50M to $100M 200
$100M to $250M 100
The sample was a nationally representative sample consisting of the following number of interviews in each
State and Territory:
Sample
NSW/ACT 340
Victoria 260
Queensland 190
South Australia 60
Northern Territory 10
West Australia 120
Tasmania 20
For analysis purposes a two-fold weighting procedure was undertaken: firstly, the data was weighted by
turnover segment within state and then further weighting was conducted by BIC (Business Industry Code)
to more accurately mirror the characteristics of the national SME population.
Page 24 of 116
At the 95% confidence interval the following margins of error apply to the survey statistics.
95% Confidence Interval Survey Estimate
10% 90%
20% 80%
30% 70%
40% 60%
50% 50%
N = 1,000 (Total Sample)
+2% +2.5% +3% +3% +3.5%
N = 400 ($2M to $10M)
+3% +4% +4.5% +5% +5%
N = 300 ($10M to $50M)
+3% +4.5% +5% +5.5% +5.5%
N = 200 ($50M to $100M)
+4% +5.5% +6.5% +7% +7%
N = 100 ($100M to $250M)
+6% +8% +9% +9.5% +10%
The response rate = Total Completes
Was 53% Total completes + Refusals
Differences at the 95% significance level are highlighted in the charts in the body of the report. Those
higher than the total sample average are identified by a green circle; those lower than the total sample
average by a red square.
Page 25 of 116
Sample Characteristics
The table below profiles characteristics of SMEs and respondents on a range of variables.
As turnover segment increases…
The target population is more likely to be in a financial rather than managerial role
The business is more likely to be part of or associated with another commercial entity (owned by or owns
another business)
The incidence of FBT obligations increases; (past year or next two year CGT obligations show no
consistent trend by turnover segment; PAYG obligations were high and consistent across all segments)
Total
(1,000) %
$2m to $10m (406)
%
$10m to $50m (300)
%
$50 to $100m (193)
%
$100m to
$250m (101)
%
Main Role of Respondent
Chairman 1 * 1 - -
Owner 21 24 7 2 4
CEO * 1 1 2 2
Managing Director 8 9 4 * 1
General Manager 4 4 4 1 -
Business Manager 3 3 1 3 *
Chief Financial Officer 3 2 7 11 14
Financial Controller/Director of Finance 12 10 17 30 21
Financial Manager 7 7 8 13 14
Accountant 18 15 32 28 36
Bookkeeper 5 5 4 - -
Company Secretary 1 1 1 3 2
Administrative Officer 9 9 6 1 -
Accounts Manager 2 2 1 * 1
Office/Practice Manager 3 3 2 1 -
Financial 47 41 70 82 86
Managerial (non-financial) 50 56 28 15 10
Years of Operation with Current Owners
Up to 2 years 4 4 3 3 3
2 to 5 years 12 12 11 15 18
5 to 9 years 13 13 13 17 11
10 plus years 69 69 73 64 67
Business Owned by Another Business
% Yes 13 9 23 44 59
Business Owns Another Business
% Yes 21 19 31 36 46
Tax Obligations
% of businesses filing FBT returns 44 39 65 84 87
% of businesses filing CGT returns (past FY or
next 2 years) 31 33 26 20 25
% of businesses filing PAYG returns 93 93 90 94 93
Page 27 of 116
The Impact of the GFC
We know from independent quarterly tracking research (Ref: Sensis ® Business Index – Appendix 1) that
confidence in the SME sector declined substantially throughout 2008 and recorded its lowest level in
February 2009. Since then there has been a sharp rebound in confidence levels.
These observations are supported by the results of the current ATO research “Understanding the Small
and Medium Enterprise Market”.
Respondents in the survey were asked to comment on the impact of the Global Financial Crisis on their own
business.
Encouragingly, very few seem to have suffered any longer term damage, with only 8% saying that the GFC
has had a negative impact from which they have yet to show signs of recovery. A sizeable 42% report that
they have recovered or are recovering from a negative impact, and a comparable proportion report minimal
or no impact. A small 4% believe the GFC to have had a positive influence on business.
Base: Total sample (1000)
Q Which of the following statements best describes the impact of the global financial crisis on this business?
Table 1: The Impact of the Global Financial Crisis
Summary
Base: Total sample (1000)
Q Which of the following statements best describes the impact of the global financial crisis on this business?
Table 1: The Impact of the Global Financial Crisis
Summary
It has had a negative impact and this business has
not shown any signs of recovery
It has had a negative impact but this business has
fully recovered or is recovering
It has had minimal or no impact
It has had a positive impact
It has had a negative impact and this business has
not shown any signs of recovery
It has had a negative impact but this business has
fully recovered or is recovering
It has had minimal or no impact
It has had a positive impact
44%
42%
8%
4%
Page 28 of 116
In the table below, we examine the impact of the GFC by business size.
The $100 to $250 million turnover segment is significantly more likely than average to report a negative
impact, albeit one from which they have recovered or are recovering.
We have also examined the impact of the GFC by business sector.
The impact of the GFC has been felt right across the board – with around 50% or more in each sector
reporting a downturn. No one sector stands out as being significantly more or less strongly impacted than
average.
62%
53%
43%
49%
55%
62%
53%
56%
49%
51%
Total
negative
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q13a Which of the following statements best describes the impact of the global financial crisis on this business?
Table 2: The Impact of the Global Financial Crisis
by business size
Negative
but no
recovery
Negative
but
recoveringNo impact
Positive
impact
5%
6%
9%
10%
11%
5%
4%
8%
9%
8%
57%
46%
34%
39%
44%
57%
49%
49%
41%
42%
30%
42%
50%
49%
39%
31%
42%
39%
45%
44%
3%100+
EMPLOYEES
6%0 to 4
2%5 to 9
4%10 to 19
4%20 to 99
TURNOVER SEGMENT
3%
2%
4%
4%
4%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
62%
53%
43%
49%
55%
62%
53%
56%
49%
51%
Total
negative
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q13a Which of the following statements best describes the impact of the global financial crisis on this business?
Table 2: The Impact of the Global Financial Crisis
by business size
Negative
but no
recovery
Negative
but
recoveringNo impact
Positive
impact
5%
6%
9%
10%
11%
5%
4%
8%
9%
8%
57%
46%
34%
39%
44%
57%
49%
49%
41%
42%
30%
42%
50%
49%
39%
31%
42%
39%
45%
44%
3%100+
EMPLOYEES
6%0 to 4
2%5 to 9
4%10 to 19
4%20 to 99
TURNOVER SEGMENT
3%
2%
4%
4%
4%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
49%
56%
58%
49%
49%
48%
51%
53%
51%
Total
negative
(184)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
(Base)
#
Base: Total sample (1000)
Note: Horizontal percentages
Q13a Which of the following statements best describes the impact of the global financial crisis on this business?
Table 3: The Impact of the Global Financial Crisisby business sector
Negative
but no
recovery
Negative
but
recoveringNo impact
Positive
impact
11%
4%
4%
5%
14%
9%
8%
10%
8%
38%
52%
54%
44%
35%
39%
43%
43%
42%
44%
40%
36%
45%
47%
46%
44%
40%
44%
2%Financial/Insurance Services
4%Rental/Hiring/Real Estate
3%Professional/Scientific/Technical
Services
5%Other
SECTOR
3%
5%
4%
3%
4%
Retail
Wholesale
Construction
Manufacturing
TOTAL
49%
56%
58%
49%
49%
48%
51%
53%
51%
Total
negative
(184)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
(Base)
#
Base: Total sample (1000)
Note: Horizontal percentages
Q13a Which of the following statements best describes the impact of the global financial crisis on this business?
Table 3: The Impact of the Global Financial Crisisby business sector
Negative
but no
recovery
Negative
but
recoveringNo impact
Positive
impact
11%
4%
4%
5%
14%
9%
8%
10%
8%
38%
52%
54%
44%
35%
39%
43%
43%
42%
44%
40%
36%
45%
47%
46%
44%
40%
44%
2%Financial/Insurance Services
4%Rental/Hiring/Real Estate
3%Professional/Scientific/Technical
Services
5%Other
SECTOR
3%
5%
4%
3%
4%
Retail
Wholesale
Construction
Manufacturing
TOTAL
Page 29 of 116
Steps Taken to Overcome the Negative Impact of the GFC
Those who reported a negative impact were asked to describe the steps they have taken to overcome the
effects of the GFC.
Cost cutting – spending less and being more cost effective – was clearly the number one initiative (27%),
followed by cutting back on staff (13%). About one in ten referred to some form of restructuring or
diversification. Others took a more proactive rather than reactive stance by selling more (9%), advertising
more (7%) or working harder (6%).
Base: Reported GFC as having a negative impact (456)
Q13b What strategies, if any, have you adopted to overcome the negative impacts of the global financial crisis?
Table 4: Steps Taken to Overcome the Negative Impact of the GFC
Base: Reported GFC as having a negative impact (456)
Q13b What strategies, if any, have you adopted to overcome the negative impacts of the global financial crisis?
Table 4: Steps Taken to Overcome the Negative Impact of the GFC
Working harder
More focused on the business/aware/cautious
Improving customer service
Advertise/more promotions
Getting new work/selling more
Internal restructure/diversifying
Cutting back on staff/not replacing staff
Cutting costs/more cost effective/spend less
Working harder
More focused on the business/aware/cautious
Improving customer service
Advertise/more promotions
Getting new work/selling more
Internal restructure/diversifying
Cutting back on staff/not replacing staff
Cutting costs/more cost effective/spend less
13%
9%
9%
7%
6%
6%
4%
27%
Page 31 of 116
Profile of the SME Sector
Number of Businesses
In total there are 144,462 Australian businesses which falling into the $2 to $250 million turnover segment,
structured as follows1.
Turnover Segment Number of Business Proportion of Businesses
Total 144,462 100.0%
$2M to $10M 117,412 81.3%
$10M to $50M 22,144 15.3%
$50M to $100M 2,915 2.0%
$100M to $250 M 1,991 1.3%
Employment
Not unexpectedly the number of full and part time employees is highly correlated with turnover. Whilst just
2% of $2 to $10 million businesses have 100 plus employees, 55% of those in the $100 to $250 million
employ in the 100 plus range.
Total
(1,000) %
$2m to $10m (406)
%
$10m to $50m (300)
%
$50 to $100m (193)
%
$100m to $250m (101)
%
Number of Full Time and Part Time Employees
Up to 4 21 22 16 10 8
5 to 9 19 22 6 4 4
10 to 19 24 27 13 5 8
20 to 99 29 26 45 33 23
100 plus 6 2 19 47 55
Business Sector
The table below examines business sector by turnover. We note a greater representation of the Financial
and Insurance sector in the higher turnover SMEs; conversely a lower penetration of the Retail sector
amongst the higher turnover SMEs.
1 As at December 2009.
Page 32 of 116
Total
(1,000)
%
$2m to $10m (406)
%
$10m to $50m (300)
%
$50 to $100m (193)
%
$100m to $250m
(101) %
Industry
Manufacturing 8 8 8 10 5
Construction 12 13 6 6 10
Wholesale Trade 10 10 10 11 13
Retail Trade 13 14 10 10 4
Financial And Insurance Services 20 19 25 30 37
Rental, Hiring And Real Estate Services 8 8 10 8 10
Professional, Scientific And Technical Services 7 7 8 5 5
Other Services 22 22 23 20 16
Membership of Professional/Industry Associations
High levels of involvement in both professional and industry associations are apparent which increases with
turnover.
In the $2 to $10 million segment business/peak body membership tends to be more prevalent than
professional affiliations; in higher turnover businesses professional associations are more widespread than
business/peak body memberships… although this is likely to be a function of the greater representation of
respondents in financial roles in the higher turnover segments.
Total
(1,000) %
$2m to $10m (406)
%
$10m to $50m (300)
%
$50 to $100m (193)
%
$100m to
$250m (101)
%
Membership of Professional/Industry Associations
% Respondents member of professional association 41 37 59 74 82
% Businesses member of industry association/ peak body 52 51 54 60 65
Access to Internal Financial Advice
Overall 75% of businesses employed an internal accountant/bookkeeper, rising to 93% amongst the $50 to
$100 million and $100 to $250 million segments.
Total
(1,000) %
$2m to $10m
(406) %
$10m to $50m
(300) %
$50 to $100m
(193) %
$100m to
$250m (101)
%
Business Employs Internal Accountant/ Bookkeeper
% Yes 75 72 88 93 93
Page 34 of 116
Summary of Attitudes
In the survey respondents were asked the extent to which they agreed or disagreed with a series of
statements about the ATO.
As illustrated in the chart above, results are largely positive.
Almost all (91%) support the statement that the ATO “…treats this business fairly and reasonably” and a
sizeable 16% strongly support this view. Only a small proportion (6%) disagree that this is the case.
There is also a clear perception that the ATO “…provides me with the information I need to manage the tax
affairs of this business” with around three-quarters (76%) agreeing and just 19% disagreeing.
A clear majority believe that the advice given by the ATO “…provides me with certainty I need to manage
the tax affairs of this business”. Some 71% agree that this is the case and 22% disagree.
There is somewhat less endorsement for the contention that the ATO “…does a good job in educating and
informing the business community about taxation matters”. However, even here, well over twice as many
agree (66%) than disagree (27%) with this point of view.
In the pages to follow we examine each of these four attitudinal statements by turnover sector and other
key variables.
Base: Total sample (1000)
Q6a I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following
Table 5: Attitudes to the ATOSummary
Base: Total sample (1000)
Q6a I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following
Table 5: Attitudes to the ATOSummary
8%
8%
75%
68%
63%
61%
19%
22%
27%5%
16% 6%
Agree strongly Agree Disagree/disagree strongly Don't know
The Tax Office does a good job in educating and
informing the business community about taxation
matters
The advice given by the Tax Office provides me
with the certainty I need to manage the tax affairs
of this business
The Tax Office provides me with the information I
need to manage the tax affairs of this business
The Tax Office treats this business fairly and
reasonably
The Tax Office does a good job in educating and
informing the business community about taxation
matters
The advice given by the Tax Office provides me
with the certainty I need to manage the tax affairs
of this business
The Tax Office provides me with the information I
need to manage the tax affairs of this business
The Tax Office treats this business fairly and
reasonably
Page 35 of 116
Provides Me with the Information I Need
Just over three-quarters (76%) of SME businesses agree that the ATO provides them with the tax
information they need, while 19% disagree with this statement. This results in a „Net Agreement‟ figure of
57% (the proportion who agree less the proportion who disagree). The „Net Agree‟ percentages provide a
useful single measure for comparisons across the various respondent groups. Analysis by business size
reveals that those in the $10 - $50M segment are more likely to agree.
When it comes to industry sector we note that those SME businesses in the Construction industry (10% of
SMEs fall into this industry code) have a significantly less favourable perception that the ATO provides the
information they need to manage the tax affairs of the business. At the other end of the scale, those in the
Professional/Scientific/Technical Services sector (7% of all SMEs) are most positive towards the ATO‟s
information provision.
48%
59%
57%
54%
57%
58%
55%
68%
55%
57%
Net agree
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
(Base)
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 6a: Attitudes to the ATO by business size“The Tax Office provides me with the information I need to manage the tax affairs of this
business”
24%72%100+
DisagreeAgree
19%
20%
21%
17%
19%
20%
14%
20%
19%
78%20 to 99
EMPLOYEES
74%0 to 4
75%5 to 9
77%10 to 19
TURNOVER SEGMENT
77%
75%
82%
75%
76%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
48%
59%
57%
54%
57%
58%
55%
68%
55%
57%
Net agree
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
(Base)
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 6a: Attitudes to the ATO by business size“The Tax Office provides me with the information I need to manage the tax affairs of this
business”
24%72%100+
DisagreeAgree
19%
20%
21%
17%
19%
20%
14%
20%
19%
78%20 to 99
EMPLOYEES
74%0 to 4
75%5 to 9
77%10 to 19
TURNOVER SEGMENT
77%
75%
82%
75%
76%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
45%
70%
61%
60%
62%
73%
44%
53%
57%
Net agree
(184)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
(Base)
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 6b: Attitudes to the ATO by business sector“The Tax Office provides me with the information I need to manage the tax affairs of this
business”
DisagreeAgree
24%
12%
19%
18%
17%
13%
26%
19%
19%
78%Financial/Insurance Services
80%Rental/Hiring/Real Estate
82%Professional/Scientific/Technical Services
69%Other
SECTOR
79%
86%
70%
72%
76%
Retail
Wholesale
Construction
Manufacturing
TOTAL
45%
70%
61%
60%
62%
73%
44%
53%
57%
Net agree
(184)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
(Base)
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 6b: Attitudes to the ATO by business sector“The Tax Office provides me with the information I need to manage the tax affairs of this
business”
DisagreeAgree
24%
12%
19%
18%
17%
13%
26%
19%
19%
78%Financial/Insurance Services
80%Rental/Hiring/Real Estate
82%Professional/Scientific/Technical Services
69%Other
SECTOR
79%
86%
70%
72%
76%
Retail
Wholesale
Construction
Manufacturing
TOTAL
Page 36 of 116
In the table below we look at reactions to this statement by other key variables.
Here, an interesting pattern starts to emerge. Those who are non or minimal users of external tax
professionals have a more positive perception of the ATO‟s ability to provide adequate information.
We also note that those who have had contact with the ATO in the past year (particularly by phone) have a
more positive attitude to the information the ATO provides.
Finally, there is clear evidence that respondents who are financial professionals are more likely than others
to believe the ATO performs well in this area.
In summary, the results suggest that those who handle their tax affairs themselves, deal with the ATO on a
more regular basis and are, themselves, financial professionals, are more likely to agree that the ATO
provides the information needed to manage the tax affairs of this business.
68%
48%
35%
59%
64%
65%
56%
49%
51%
58%
57%
Net agree
25%60%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(308)
(162)
(838)
(1000)
Base
#
15%83%**Financial professional
22%70%Owner/proprietor/chairman/CEO/company secretary/
administrator
Base: Total sample (1000)
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 6c: Attitudes to the ATO by other variables“The Tax Office provides me with the information I need to manage the tax affairs of this
business”
ROLE IN COMPANY
DisagreeAgree
19%
18%
15%
20%
22%
20%
19%
19%
78%Online/web/portal
76%Moderate
80%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
82%Phone
INTERNAL ACCOUNTANT
71%
71%
77%
76%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
68%
48%
35%
59%
64%
65%
56%
49%
51%
58%
57%
Net agree
25%60%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(308)
(162)
(838)
(1000)
Base
#
15%83%**Financial professional
22%70%Owner/proprietor/chairman/CEO/company secretary/
administrator
Base: Total sample (1000)
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 6c: Attitudes to the ATO by other variables“The Tax Office provides me with the information I need to manage the tax affairs of this
business”
ROLE IN COMPANY
DisagreeAgree
19%
18%
15%
20%
22%
20%
19%
19%
78%Online/web/portal
76%Moderate
80%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
82%Phone
INTERNAL ACCOUNTANT
71%
71%
77%
76%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
Page 37 of 116
Advice from the ATO Provides Me With Certainty to Manage Tax Affairs
Seventy-one percent agree while, 22% disagree that the advice sought from the ATO provides the business
with certainty to manage the business tax affairs. The level of agreement with this statement is relatively
consistent across the turnover and employment segments with no significant differences being evident.
However, by business industry sector we again note that those in the Professional/Scientific/Technical
Services sector (7% of all SMEs) are the most likely to agree that the advice sought from the ATO provides
the business with certainty to manage the business tax affairs.
43%
46%
51%
53%
49%
48%
43%
52%
48%
49%
Net agree
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 7a: Attitudes to the ATO by business size“The advice given by the Tax Office provides me with the certainty I need to manage the tax
affairs of this business”
26%67%100+
DisagreeAgree
22%
22%
22%
20%
22%
25%
20%
22%
22%
68%20 to 99
EMPLOYEES
69%0 to 4
75%5 to 9
73%10 to 19
TURNOVER SEGMENT
70%
68%
72%
70%
71%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
43%
46%
51%
53%
49%
48%
43%
52%
48%
49%
Net agree
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 7a: Attitudes to the ATO by business size“The advice given by the Tax Office provides me with the certainty I need to manage the tax
affairs of this business”
26%67%100+
DisagreeAgree
22%
22%
22%
20%
22%
25%
20%
22%
22%
68%20 to 99
EMPLOYEES
69%0 to 4
75%5 to 9
73%10 to 19
TURNOVER SEGMENT
70%
68%
72%
70%
71%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
42%
63%
51%
47%
50%
49%
54%
50%
49%
Net agree
(184)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
Base
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 7b: Attitudes to the ATO by business sector“The advice given by the Tax Office provides me with the certainty I need to manage the tax
affairs of this business”
DisagreeAgree
24%
15%
19%
25%
22%
22%
18%
21%
22%
72%Financial/Insurance Services
70%Rental/Hiring/Real Estate
78%Professional/Scientific/Technical Services
66%Other
SECTOR
72%
71%
72%
71%
71%
Retail
Wholesale
Construction
Manufacturing
TOTAL
42%
63%
51%
47%
50%
49%
54%
50%
49%
Net agree
(184)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
Base
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 7b: Attitudes to the ATO by business sector“The advice given by the Tax Office provides me with the certainty I need to manage the tax
affairs of this business”
DisagreeAgree
24%
15%
19%
25%
22%
22%
18%
21%
22%
72%Financial/Insurance Services
70%Rental/Hiring/Real Estate
78%Professional/Scientific/Technical Services
66%Other
SECTOR
72%
71%
72%
71%
71%
Retail
Wholesale
Construction
Manufacturing
TOTAL
Page 38 of 116
On this statement we see no significant differences in the level of agreement across the variables shown
below, suggesting that the „certainty‟ provided by the ATO is delivered in a consistent manner.
49%
46%
43%
48%
51%
54%
44%
50%
45%
52%
49%
Net agree
22%65%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
23%72%**Financial professional
22%68%Owner/proprietor/chairman/CEO/company secretary/
administrator
Base: Total sample (1000)
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 7c: Attitudes to the ATO by other variables“The advice given by the Tax Office provides me with the certainty I need to manage the tax
affairs of this business”
ROLE IN COMPANY
DisagreeAgree
23%
23%
20%
26%
19%
22%
21%
22%
71%Online/web/portal
70%Moderate
74%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
74%Phone
INTERNAL ACCOUNTANT
69%
67%
73%
71%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
49%
46%
43%
48%
51%
54%
44%
50%
45%
52%
49%
Net agree
22%65%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
23%72%**Financial professional
22%68%Owner/proprietor/chairman/CEO/company secretary/
administrator
Base: Total sample (1000)
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 7c: Attitudes to the ATO by other variables“The advice given by the Tax Office provides me with the certainty I need to manage the tax
affairs of this business”
ROLE IN COMPANY
DisagreeAgree
23%
23%
20%
26%
19%
22%
21%
22%
71%Online/web/portal
70%Moderate
74%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
74%Phone
INTERNAL ACCOUNTANT
69%
67%
73%
71%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
Page 39 of 116
The ATO Does a Good Job in Educating and Informing
Two-thirds agree with the statement that “the Tax Office does a good job in educating and informing the
business community about taxation matters” but a sizeable 27% disagree.
As illustrated below the $10 to $50 million and $100 to $250 million segments are more supportive of this
view.
Results by industry reveal fairly consistent agree and disagree levels across all sectors, although in terms
of the „Net Agree‟ figure there are signs that those in the Construction (12% of SMEs) and Retail (13% of
SMEs) are less positive than average.
37%
34%
38%
48%
39%
48%
41%
49%
37%
39%
Net agree
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 8a: Attitudes to the ATO by business size“The Tax Office does a good job in educating and informing the business community about
taxation matters”
30%67%100+
DisagreeAgree
30%
28%
23%
27%
23%
27%
24%
28%
27%
64%20 to 99
EMPLOYEES
66%0 to 4
71%5 to 9
66%10 to 19
TURNOVER SEGMENT
71%
68%
73%
65%
66%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
37%
34%
38%
48%
39%
48%
41%
49%
37%
39%
Net agree
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 8a: Attitudes to the ATO by business size“The Tax Office does a good job in educating and informing the business community about
taxation matters”
30%67%100+
DisagreeAgree
30%
28%
23%
27%
23%
27%
24%
28%
27%
64%20 to 99
EMPLOYEES
66%0 to 4
71%5 to 9
66%10 to 19
TURNOVER SEGMENT
71%
68%
73%
65%
66%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
(84)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
Base
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 8b: Attitudes to the ATO by business sector“The Tax Office does a good job in educating and informing the business community about
taxation matters”
Net agreeDisagreeAgree
42%
38%
39%
42%
33%
36%
34%
40%
39%
28%
29%
28%
26%
28%
29%
29%
28%
27%
68%Financial/Insurance Services
67%Rental/Hiring/Real Estate
67%Professional/Scientific/Technical Services
70%Other
SECTOR
61%
65%
63%
68%
66%
Retail
Wholesale
Construction
Manufacturing
TOTAL
(84)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
Base
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 8b: Attitudes to the ATO by business sector“The Tax Office does a good job in educating and informing the business community about
taxation matters”
Net agreeDisagreeAgree
42%
38%
39%
42%
33%
36%
34%
40%
39%
28%
29%
28%
26%
28%
29%
29%
28%
27%
68%Financial/Insurance Services
67%Rental/Hiring/Real Estate
67%Professional/Scientific/Technical Services
70%Other
SECTOR
61%
65%
63%
68%
66%
Retail
Wholesale
Construction
Manufacturing
TOTAL
Page 40 of 116
As illustrated below, those who have had no recent contact with the ATO are far less likely to agree and
substantially more likely to disagree with this statement. Also, those who are the finance professionals
within the business (and, intuitively, more familiar with ATO products and services) have a substantially
more positive view than their lay counterparts.
13%38%51%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
55%20%75%**Financial professional
22%35%57%Owner/proprietor/chairman/CEO/company
secretary/ administrator
Base: Total sample (1000)
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 8c: Attitudes to the ATO by other variables“The Tax Office does a good job in educating and informing the business community about
taxation matters”
ROLE IN COMPANY
Net agreeDisagreeAgree
43%
48%
35%
41%
39%
33%
41%
39%
26%
24%
30%
27%
26%
29%
27%
27%
69%Online/web/portal
68%Moderate
65%Small/not at all
USED ATO PRODUCTS/SERVICES IN
LAST YEAR
72%Phone
INTERNAL ACCOUNTANT
65%
62%
68%
66%
Substantial
USE OF EXTERNAL TAX
PROFESSIONAL
No
Yes
TOTAL
13%38%51%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
55%20%75%**Financial professional
22%35%57%Owner/proprietor/chairman/CEO/company
secretary/ administrator
Base: Total sample (1000)
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 8c: Attitudes to the ATO by other variables“The Tax Office does a good job in educating and informing the business community about
taxation matters”
ROLE IN COMPANY
Net agreeDisagreeAgree
43%
48%
35%
41%
39%
33%
41%
39%
26%
24%
30%
27%
26%
29%
27%
27%
69%Online/web/portal
68%Moderate
65%Small/not at all
USED ATO PRODUCTS/SERVICES IN
LAST YEAR
72%Phone
INTERNAL ACCOUNTANT
65%
62%
68%
66%
Substantial
USE OF EXTERNAL TAX
PROFESSIONAL
No
Yes
TOTAL
Page 41 of 116
The ATO Treats This Business Reasonably and Fairly
As we have seen, there is close to unanimous agreement from SME businesses that the ATO treats them
fairly, and this holds true right across all the SME market segments.
Results are also fairly consistent across the business industry sectors, although there are signs those in the
Rental/Hiring/Real Estate business (8% of all SMEs) seem to be a little more disenchanted than most, with
lower agreement and higher disagreement levels than other sectors.
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 9a: Attitudes to the ATO by business size“The Tax Office treats this business fairly and reasonably”
80%10%90%100+
Net agreeDisagreeAgree
89%
87%
81%
83%
95%
92%
87%
94%
85%
4%
4%
7%
7%
2%
4%
6%
6%
6%
93%20 to 99
EMPLOYEES
90%0 to 4
88%5 to 9
91%10 to 19
TURNOVER SEGMENT
97%
96%
93%
90%
91%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 9a: Attitudes to the ATO by business size“The Tax Office treats this business fairly and reasonably”
80%10%90%100+
Net agreeDisagreeAgree
89%
87%
81%
83%
95%
92%
87%
94%
85%
4%
4%
7%
7%
2%
4%
6%
6%
6%
93%20 to 99
EMPLOYEES
90%0 to 4
88%5 to 9
91%10 to 19
TURNOVER SEGMENT
97%
96%
93%
90%
91%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
(184)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
Base
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 9b: Attitudes to the ATO by business sector“The Tax Office treats this business fairly and reasonably”
Net agreeDisagreeAgree
73%
88%
74%
90%
86%
83%
83%
91%
85%
7%
4%
13%
3%
5%
5%
8%
3%
6%
93%Financial/Insurance Services
87%Rental/Hiring/Real Estate
92%Professional/Scientific/Technical Services
90%Other
SECTOR
91%
88%
91%
94%
91%
Retail
Wholesale
Construction
Manufacturing
TOTAL
(184)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
Base
#
Base: Total sample (1000)
Note: Horizontal percentages
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 9b: Attitudes to the ATO by business sector“The Tax Office treats this business fairly and reasonably”
Net agreeDisagreeAgree
73%
88%
74%
90%
86%
83%
83%
91%
85%
7%
4%
13%
3%
5%
5%
8%
3%
6%
93%Financial/Insurance Services
87%Rental/Hiring/Real Estate
92%Professional/Scientific/Technical Services
90%Other
SECTOR
91%
88%
91%
94%
91%
Retail
Wholesale
Construction
Manufacturing
TOTAL
Page 42 of 116
Results shown no appreciable differences in agreement and disagreement levels in terms of the variables
shown in the table below.
* * * * *
In Summary
The ATO is highly regarded as being fair and reasonable in its treatment of SME businesses, and most
believe that the ATO performs well in its role as an advisor and educator.
Importantly, there is strong evidence that those with a financial background and those who have had more
contact with the ATO have a more positive attitude to its performance in this role.
78%7%85%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
87%5%92%**Financial professional
84%6%90%Owner/proprietor/chairman/CEO/company secretary/
administrator
Base: Total sample (1000)
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 9c: Attitudes to the ATO by other variables“The Tax Office treats this business fairly and reasonably”
ROLE IN COMPANY
Net agreeDisagreeAgree
87%
84%
80%
92%
80%
84%
85%
85%
5%
7%
8%
3%
7%
5%
6%
6%
92%Online/web/portal
95%Moderate
88%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
91%Phone
INTERNAL ACCOUNTANT
87%
89%
91%
91%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
78%7%85%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
87%5%92%**Financial professional
84%6%90%Owner/proprietor/chairman/CEO/company secretary/
administrator
Base: Total sample (1000)
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Net Agree = % Agree - % Disagree
Q6 I‟d like to read out some statements about the Tax Office and taxation. Please indicate whether you
strongly agree, agree, disagree or strongly disagree with the following…
Table 9c: Attitudes to the ATO by other variables“The Tax Office treats this business fairly and reasonably”
ROLE IN COMPANY
Net agreeDisagreeAgree
87%
84%
80%
92%
80%
84%
85%
85%
5%
7%
8%
3%
7%
5%
6%
6%
92%Online/web/portal
95%Moderate
88%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
91%Phone
INTERNAL ACCOUNTANT
87%
89%
91%
91%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
Page 44 of 116
Usage of ATO Products or Services in the Past 12 Months
All but 13% of SMEs have made use of one or more of the ATO‟s key products and services in the past 12
months. The ATO website (used by 79%) is the most commonly used service followed by the ATO business
portal (47%) and calculators (46%). Sizeable minorities have used the business tax enquiries line (37%)
and the ATO legal databases (25%).
Respondents were also asked the question:
“Are there any other ATO products, services or tools you have used in the last 12 months?”
Some 86% did not nominate any additional service, tool or product while negligible proportions (1% - 2%)
mentioned…
ordering a product
ECI software
newsletter/magazine
tax agent portal (the 1% that mentioned this may be reporting the lodgement channel used by their
agent).
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Table 10a: Usage of ATO Products or Services in the Past 12 Months
Summary
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Table 10a: Usage of ATO Products or Services in the Past 12 Months
Summary
47%
46%
37%
25%
9%
3%
2%
13%
79%
Used no Tax Office product
Tax Office online subscription feature
SME Communicator
SME Tax Forum
Tax Office legal database
Tax Office business tax enquiries line – 13 28 66
Online version of calculators/other tools
The Tax Office business portal, which businesses register to use
Tax Office website
Used no Tax Office product
Tax Office online subscription feature
SME Communicator
SME Tax Forum
Tax Office legal database
Tax Office business tax enquiries line – 13 28 66
Online version of calculators/other tools
The Tax Office business portal, which businesses register to use
Tax Office website
Page 45 of 116
In the previous market segment research conducted in July 2008 a similar question was asked:
“I am going to name products, services and tools the ATO provides for business. Please
indicate whether you have used each product, service or tool before today?”
Whilst the 2008 survey asked about ever used and the current survey referred to used last year, it is still
of interest to compare the findings.
As we might expect, the „ever used‟ figures tend to be higher than the „used last year‟ proportions for most
of the services.
The exceptions to this are the ATO business portal and the online calculators – suggesting that usage of
these has risen significantly over the last two years. These results also suggest that use of the business tax
enquiries line may be declining.
It is of interest to pose the question whether users of the business tax enquiries line are any less likely to
use the ATO‟s online services.
Base: Total sample 2008 (1068); 2010 (1000)
2008 - Q15 : I am going to name 9 key products, services, and tools the Tax Office provides for businesses.
Please indicate whether you have used each product, service, or tool before today.
20010 – Q10a: Have you used the following Tax Office products or services in the last 12 months?
Table 10b: Usage of ATO Products or Services
Comparison with 2008
Base: Total sample 2008 (1068); 2010 (1000)
2008 - Q15 : I am going to name 9 key products, services, and tools the Tax Office provides for businesses.
Please indicate whether you have used each product, service, or tool before today.
20010 – Q10a: Have you used the following Tax Office products or services in the last 12 months?
Table 10b: Usage of ATO Products or Services
Comparison with 2008
Tax Office online subscription feature
Tax Office legal database
Tax Office business tax enquiries line – 13 28 66
Online version of calculators/other tools
The Tax Office business portal, which businesses
register to use
Tax Office website
Tax Office online subscription feature
Tax Office legal database
Tax Office business tax enquiries line – 13 28 66
Online version of calculators/other tools
The Tax Office business portal, which businesses
register to use
Tax Office website
48%
38%
66%
33%
14%
79%
47%
46%
37%
25%
9%
92%
2008 ever used 2010 used last year
Page 46 of 116
There is no evidence that this is the case. Indeed, the reverse appears to be true.
As shown, those who have used the business tax enquiries line have by no means relied entirely on this
form of communication. Close to 90% have also used the website, and over 60% used the business portal.
We can also look at these figures the other way around, where we find that those who have used the
website are no less likely to have used the business tax enquiries line. Clearly, the website is not a full
substitute for the personal interface offered by the business tax enquiries line.
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Table 10d: Proportion Who Have Used the ATO Business Enquiry Line in
Last 12 Months
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Table 10d: Proportion Who Have Used the ATO Business Enquiry Line in
Last 12 Months
40%
21%
37%
Total sample
(1000)
Have used website
(848)
Have not used website
(152)
(637)(363)(1000)
2%
3%
9%
25%
46%
47%
79%
Total
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Table 10c: Usage of ATO Products or Services in the Past 12 Months?Cross Usage
5%
4%
18%
30%
55%
61%
89%
Have used the
business tax
enquiries line
Have not used the
business tax
enquiries line
1%SME Tax Forum
39%The Tax Office business portal, which
businesses register to use
2%
4%
22%
40%
74%
SME Communicator
Tax Office online subscription feature
Tax Office legal database
Online version of calculators/other tools
Tax Office website
(637)(363)(1000)
2%
3%
9%
25%
46%
47%
79%
Total
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Table 10c: Usage of ATO Products or Services in the Past 12 Months?Cross Usage
5%
4%
18%
30%
55%
61%
89%
Have used the
business tax
enquiries line
Have not used the
business tax
enquiries line
1%SME Tax Forum
39%The Tax Office business portal, which
businesses register to use
2%
4%
22%
40%
74%
SME Communicator
Tax Office online subscription feature
Tax Office legal database
Online version of calculators/other tools
Tax Office website
Page 47 of 116
In the table to follow, we look at usage of these tools by turnover segment.
Those in the larger turnover segments are more likely than the lower turnover segments to have used the
business portal, website and database (a finding in common with the 2008 results). We also note the
$100M to $250M segment shows greater reliance on the business tax enquiries line.
Below we examine usage of selected products or services by other variables. The results clearly show that
these services are popular with the financial professionals within the business and also by businesses who
have an internal accountant. Minimal or non-users of external tax professionals are slightly more likely to
use the legal database.
90%
71%
81%
84%
72%
61%
85%
79%
Website
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Q10a Have you used the following Tax Office products or services in the last 12 months?
(614)
(318)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
36%43%55%57%**Financial professional
15%32%37%38%Owner/proprietor/chairman/CEO/company
secretary/ administrator
ROLE IN COMPANY
Table 10f: Usage of ATO Products or Services in the Past 12 Months?by other variables
51%
50%
39%
26%
55%
47%
Business
Portal
Legal
Database
Enquiries
Line
Calculator/
Other
Tools
30%
27%
17%
5%
31%
25%
42%
38%
30%
31%
39%
37%
52%Moderate
41%Small/not at all
INTERNAL ACCOUNTANT
43%
25%
52%
46%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
90%
71%
81%
84%
72%
61%
85%
79%
Website
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Q10a Have you used the following Tax Office products or services in the last 12 months?
(614)
(318)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
36%43%55%57%**Financial professional
15%32%37%38%Owner/proprietor/chairman/CEO/company
secretary/ administrator
ROLE IN COMPANY
Table 10f: Usage of ATO Products or Services in the Past 12 Months?by other variables
51%
50%
39%
26%
55%
47%
Business
Portal
Legal
Database
Enquiries
Line
Calculator/
Other
Tools
30%
27%
17%
5%
31%
25%
42%
38%
30%
31%
39%
37%
52%Moderate
41%Small/not at all
INTERNAL ACCOUNTANT
43%
25%
52%
46%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
(101)(193)(300)(406)(1000)
13%
9%
37%
2%
3%
46%
25%
79%
47%
Total
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Table 10e: Usage of ATO Products or Services in the Past 12 Monthsby turnover segment
14%
9%
37%
3%
3%
46%
24%
77%
45%
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million
4%
11%
45%
1%
3%
39%
37%
94%
68%
4%
6%
36%
2%
3%
51%
37%
92%
62%
36%Tax Office business tax enquiries line
12%Tax Office online subscription feature
8%None used
88%Tax Office website
3%
4%
44%
30%
55%
SME Tax Forum
SME Communicator
Online version of calculators/other tools
Tax Office legal database
The Tax Office business portal
(101)(193)(300)(406)(1000)
13%
9%
37%
2%
3%
46%
25%
79%
47%
Total
Base: Total sample (1000)
Q10a Have you used the following Tax Office products or services in the last 12 months?
Table 10e: Usage of ATO Products or Services in the Past 12 Monthsby turnover segment
14%
9%
37%
3%
3%
46%
24%
77%
45%
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million
4%
11%
45%
1%
3%
39%
37%
94%
68%
4%
6%
36%
2%
3%
51%
37%
92%
62%
36%Tax Office business tax enquiries line
12%Tax Office online subscription feature
8%None used
88%Tax Office website
3%
4%
44%
30%
55%
SME Tax Forum
SME Communicator
Online version of calculators/other tools
Tax Office legal database
The Tax Office business portal
Page 48 of 116
Perceived Usefulness of ATO Products/Services
Users of each product or service were asked to rate its usefulness on a five point „Extremely useful‟ to „Not
at all useful‟ scale.
All of the products and services were rated as useful (to some degree) by a clear majority of users. The
services which were particularly strongly endorsed included:
the online calculators (rated as extremely or very useful by 65%)
the ATO business portal (64% extremely or very useful).
The ATO website was well regarded by most users – although a minority of 8% were negative in their
views. The legal database also received criticism from a small but significant minority (11%). The most
heavily criticized service was the tax enquiries line (17% rated as not useful).
24%
12%
11%
14%
17%
7%
12%
47%
40%
38%
35%
30%
21%
29%
15%
31%
31%
41%
46%
40%
48%
45%
50%
8%
11%
17%
7%
13%
19%
18%
4%
Extremely useful Very useful Fairly useful Not too/not at all usefull Don't know/Can't say
Base: Product/service used *Note small sample size)
Q10c How would you rate the usefulness of [insert name of product/service] in helping this business meet its
tax obligations? Would you say [Insert Product Service] is…
Table 11a: Usefulness of ATO Products/Services
Summary
Base: Product/service used *Note small sample size)
Q10c How would you rate the usefulness of [insert name of product/service] in helping this business meet its
tax obligations? Would you say [Insert Product Service] is…
Table 11a: Usefulness of ATO Products/Services
Summary
SME Communicator *(35)
Tax Office business tax enquiries line (363)
Tax Office legal database (283)
SME Tax Forum *(26)
Tax Office online subscription feature (90)
Tax Office website (848)
The Tax Office business portal (527)
Online calculators/other tools (463)
SME Communicator *(35)
Tax Office business tax enquiries line (363)
Tax Office legal database (283)
SME Tax Forum *(26)
Tax Office online subscription feature (90)
Tax Office website (848)
The Tax Office business portal (527)
Online calculators/other tools (463)
Page 49 of 116
The 2008 research also included ratings of a number of products. The two sets of results are not entirely
comparable because in 2010 a semantic scale was used while in 2008 a score out of ten was used.
However, we can compare the rank order of the common products or services rated in the two surveys.
As we can see, the rank order is consistent over the two survey waves.
Below we examine ratings of the products and services across the SME business segments based on the
proportion of respondents giving the rating as extremely/very useful. Note, that due to small sample sizes,
only the responses for the more commonly used services are shown. The indications are that the business
portal is rated more favourably by the $2 to $10 M and $10 to $50M segments; the calculators more
positively by the $2 to $10 million segment and the legal database by users in the $100 to $250 million
sector.
36%
65%
38%
50%
64%
Total
Base: Product/service used (variable)
Note: * Small base
Q10c How would you rate the usefulness of [insert name of product/service] in helping this business meet its
tax obligations? Would you say [Insert Product Service] is…
Table 11b: Usefulness of ATO Products/Servicesby turnover segment
37%
66%
38%
50%
65%
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million% Extremely/Very Useful
30%
*57%
46%
51%
54%
33%
56%
34%
44%
49%
32%Tax Office business tax enquiries line
51%Tax Office website
57%
38%
61%
Online version of calculators/other tools
Tax Office legal database
The Tax Office business portal
36%
65%
38%
50%
64%
Total
Base: Product/service used (variable)
Note: * Small base
Q10c How would you rate the usefulness of [insert name of product/service] in helping this business meet its
tax obligations? Would you say [Insert Product Service] is…
Table 11b: Usefulness of ATO Products/Servicesby turnover segment
37%
66%
38%
50%
65%
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million% Extremely/Very Useful
30%
*57%
46%
51%
54%
33%
56%
34%
44%
49%
32%Tax Office business tax enquiries line
51%Tax Office website
57%
38%
61%
Online version of calculators/other tools
Tax Office legal database
The Tax Office business portal
2008 vs. 2010
Perceptions of Usefulness – Research Order
2008 vs. 2010
Perceptions of Usefulness – Research Order
Business enquiry line
Online subscription
Website
Business portal
Online calculators
2008
Business enquiry line
Online subscription
Website
Business portal
Online calculators
2008
Business enquiry line
Online subscription
Website
Business portal
Online calculators
2010
Business enquiry line
Online subscription
Website
Business portal
Online calculators
2010
= rated
LOWEST RATED
HIGHEST RATED
Page 50 of 116
Channel Preference for Obtaining Information from the ATO
Respondents were asked to nominate their preferred method of obtaining information from the ATO.
There is clear preference for the ATO website with this channel being nominated by just over 50%.
The business portal and telephone contact are the only other two options to be preferred by more than
one in ten.
Across the turnover segments we note:
higher than average preference for the website amongst the larger concerns ($10m+)
lower than average preference for the business tax enquiries line amongst the $100 to $250 million
turnover business.
2%5%6%11%10%No preference
3%2%1%1%1%Through Tax Office seminars provided by
the Tax Office
4%7%6%5%5%Email from/to the Tax Office
2%2%2%5%4%Paper mail from/to the Tax Office
12%10%11%14%14%Tax Office business portal, which
businesses register to use
8%12%10%16%15%By calling the Tax Office 13 28 66
business enquiry line
0%
52%
Total
(1000)
Base: Total sample
Q11. For this business, what is the most preferred method of obtaining tax information from the Tax Office?
Table 12b: Channel Preference for Obtaining Information from the ATOby turnover segment
-
49%
$2 to $10
million
(406)
$100 to $250
million
(101)
$50 to $100
million
(193)
$10 to $50
million
(300)
-
69%
-
62%
1%
64%
By visiting the Tax Office
Tax Office website
2%5%6%11%10%No preference
3%2%1%1%1%Through Tax Office seminars provided by
the Tax Office
4%7%6%5%5%Email from/to the Tax Office
2%2%2%5%4%Paper mail from/to the Tax Office
12%10%11%14%14%Tax Office business portal, which
businesses register to use
8%12%10%16%15%By calling the Tax Office 13 28 66
business enquiry line
0%
52%
Total
(1000)
Base: Total sample
Q11. For this business, what is the most preferred method of obtaining tax information from the Tax Office?
Table 12b: Channel Preference for Obtaining Information from the ATOby turnover segment
-
49%
$2 to $10
million
(406)
$100 to $250
million
(101)
$50 to $100
million
(193)
$10 to $50
million
(300)
-
69%
-
62%
1%
64%
By visiting the Tax Office
Tax Office website
Table 12a: Channel Preference for Obtaining Information from the ATO
Summary
Base: Total sample (1000)
Q11. For this business, what is the most preferred method of obtaining tax information from the Tax Office?
Tax Office website
By calling the Tax Office 13 28 66 business enquiry line
Tax Office business portal, which businesses register to use
Email from/to the Tax Office
Paper mail from/to the Tax Office
Through Tax Office seminars provided by the Tax Office
By visiting the Tax Office
No preference
15%
14%
5%
4%
1%
0%
10%
52%
Page 51 of 116
Have These Channel Preferences Changed Since 2008?
In the 2008 survey the list of preferences also included non-ATO channels. We have, therefore, re-
calculated both sets of findings to base the results only on those who actually nominated an ATO product.
Those with no preference have also been excluded from both sets of data.
As illustrated, there has been a lift in preference for the business portal and a decline in support for paper
communication.
In 2010 we have also seen a small lift in support for the business tax enquiries line.
1%N/AThrough Tax Office seminars provided by the Tax Office
6%12%Email from/to the Tax Office
4%10%Paper mail from/to the Tax Office
16%5%Tax Office business portal, which businesses register to use
17%10%By calling the Tax Office 13 28 66 business enquiry line
Base: Those who nominated one of the above
Q11. For this business, what is the most preferred method of obtaining tax information from the Tax Office?
Table 12c: Channel Preference for Obtaining Information from the ATOTrends
2010
(900)
2008
(619)
0%
58%
N/A
62%
By visiting the Tax Office
Tax Office website
1%N/AThrough Tax Office seminars provided by the Tax Office
6%12%Email from/to the Tax Office
4%10%Paper mail from/to the Tax Office
16%5%Tax Office business portal, which businesses register to use
17%10%By calling the Tax Office 13 28 66 business enquiry line
Base: Those who nominated one of the above
Q11. For this business, what is the most preferred method of obtaining tax information from the Tax Office?
Table 12c: Channel Preference for Obtaining Information from the ATOTrends
2010
(900)
2008
(619)
0%
58%
N/A
62%
By visiting the Tax Office
Tax Office website
Page 53 of 116
Is Business Part of the PAYG System?
Questions on PAYG were put to the 93% of businesses who answered „yes‟ to the question…
“Is this business part of the pay as you go system, known as PAYG?”
Some 5% of businesses claimed to not be part of the PAYG system whilst 2% weren‟t sure.
Whilst these figures do not vary greatly by turnover sector, we note that only about 80% of those
employing fewer than five people say that they are part of the PAYG system.
Base: Total sample
Q9a. Is this business part of the pay as you go system or PAYG?
Table 13: Part of the PAYG System
by business size
Base: Total sample
Q9a. Is this business part of the pay as you go system or PAYG?
Table 13: Part of the PAYG System
by business size
100+ employees (210)
20 to 99 employees (341)
10 to 19 employees (168)
5 to 9 employees (121)
0 to 4 employees (153)
Total (1,000)
100+ employees (210)
20 to 99 employees (341)
10 to 19 employees (168)
5 to 9 employees (121)
0 to 4 employees (153)
Total (1,000)
81%
95%
95%
97%
93%
93%
Page 54 of 116
Understanding of Income Tax (PAYG) Obligations
There is no real issue with understanding PAYG obligations with all but 6% saying they understand this
process well.
Knowledge levels are reasonably consistent across the turnover segments.
Base: PAYG Businesses (935)
Q7b Overall, how well do you understand this business‟s PAYG obligations?
Table 14a: Understanding of PAYG Obligations Summary
Base: PAYG Businesses (935)
Q7b Overall, how well do you understand this business‟s PAYG obligations?
Table 14a: Understanding of PAYG Obligations Summary
Not at all
well
1%
Well
35%
Not very
well
5%
Very well
59%
1%
2%
1%
0%
2%
2%
-
1%
2%
1%
Not at all
Well
(207)
(334)
(158)
(116)
(115)
(95)
(183)
(277)
(380)
(935)
Base
#
Base: PAYG Businesses (935)
Note: Horizontal percentages
Q9b Overall how well do you understand this business‟s PAYG obligations?
Table 14b: Understanding of PAYG Obligations by business size
4%25%70%100+
Not Very
WellWellVery Well
4%
5%
5%
5%
3%
3%
5%
5%
5%
35%
36%
33%
37%
39%
31%
31%
36%
35%
59%20 to 99
EMPLOYEES
56%0 to 4
62%5 to 9
58%10 to 19
TURNOVER SEGMENT
57%
66%
64%
58%
59%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
1%
2%
1%
0%
2%
2%
-
1%
2%
1%
Not at all
Well
(207)
(334)
(158)
(116)
(115)
(95)
(183)
(277)
(380)
(935)
Base
#
Base: PAYG Businesses (935)
Note: Horizontal percentages
Q9b Overall how well do you understand this business‟s PAYG obligations?
Table 14b: Understanding of PAYG Obligations by business size
4%25%70%100+
Not Very
WellWellVery Well
4%
5%
5%
5%
3%
3%
5%
5%
5%
35%
36%
33%
37%
39%
31%
31%
36%
35%
59%20 to 99
EMPLOYEES
56%0 to 4
62%5 to 9
58%10 to 19
TURNOVER SEGMENT
57%
66%
64%
58%
59%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
Page 55 of 116
Knowledge levels are higher amongst businesses in the Professional/Scientific/Technical Services sector.
Minimal or non-users of external tax consultants are more likely to have a good knowledge of PAYG (hence
less reliance on external professionals). We also note that those who have had no recent contact with the
ATO are less conversant with PAYG issues than those who have.
1%
-
1%
2%
-
3%
2%
0%
1%
Not at all
Well
(172)
(137)
(53)
(112)
(84)
(122)
(114)
(141)
(935)
Base
#
Base: PAYG Businesses (935)
Note: Horizontal percentages
Q9b Overall how well do you understand this business‟s PAYG obligations?
Table 14c: Understanding of PAYG Obligations by business sector
Not Very
WellWellVery Well
5%
9%
5%
2%
4%
6%
6%
3%
5%
35%
22%
37%
37%
35%
35%
36%
37%
35%
59%Financial/Insurance Services
57%Rental/Hiring/Real Estate
69%Professional/Scientific/Technical
Services
59%Other
SECTOR
61%
55%
56%
60%
59%
Retail
Wholesale
Construction
Manufacturing
TOTAL
1%
-
1%
2%
-
3%
2%
0%
1%
Not at all
Well
(172)
(137)
(53)
(112)
(84)
(122)
(114)
(141)
(935)
Base
#
Base: PAYG Businesses (935)
Note: Horizontal percentages
Q9b Overall how well do you understand this business‟s PAYG obligations?
Table 14c: Understanding of PAYG Obligations by business sector
Not Very
WellWellVery Well
5%
9%
5%
2%
4%
6%
6%
3%
5%
35%
22%
37%
37%
35%
35%
36%
37%
35%
59%Financial/Insurance Services
57%Rental/Hiring/Real Estate
69%Professional/Scientific/Technical
Services
59%Other
SECTOR
61%
55%
56%
60%
59%
Retail
Wholesale
Construction
Manufacturing
TOTAL
1%
1%
1%
1%
1%
3%
1%
0%
2%
1%
1%
Not at all
Well
10%54%35%(80)Did not use
(581)
(287)
(846)
(339)
(247)
(397)
(291)
(139)
(796)
(935)
Base
#
3%33%63%**Financial professional
7%36%56%Owner/proprietor/chairman/CEO/company secretary/ administrator
Base: PAYG Businesses
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Q9b Overall how well do you understand this business‟s PAYG obligations?
Table 14d: Understanding of PAYG Obligations by other variables
ROLE IN COMPANY
Not Very
WellWellVery Well
4%
6%
2%
6%
5%
7%
4%
5%
33%
31%
26%
36%
42%
40%
33%
35%
62%Online/web/portal
57%Moderate
69%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
62%Phone
INTERNAL ACCOUNTANT
53%
52%
62%
59%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
1%
1%
1%
1%
1%
3%
1%
0%
2%
1%
1%
Not at all
Well
10%54%35%(80)Did not use
(581)
(287)
(846)
(339)
(247)
(397)
(291)
(139)
(796)
(935)
Base
#
3%33%63%**Financial professional
7%36%56%Owner/proprietor/chairman/CEO/company secretary/ administrator
Base: PAYG Businesses
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Q9b Overall how well do you understand this business‟s PAYG obligations?
Table 14d: Understanding of PAYG Obligations by other variables
ROLE IN COMPANY
Not Very
WellWellVery Well
4%
6%
2%
6%
5%
7%
4%
5%
33%
31%
26%
36%
42%
40%
33%
35%
62%Online/web/portal
57%Moderate
69%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
62%Phone
INTERNAL ACCOUNTANT
53%
52%
62%
59%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
Page 56 of 116
Ease of Accessing Income Tax Information from the ATO
Most SMEs (74%) believe that they can easily obtain the PAYG information they require from the ATO and
just one in ten find this a less than easy task. However, if we exclude the „not sure‟ and „not required‟, we
see that 88% find the information easy to obtain and only 12% not easy.
Those in the largest of the four turnover segments are more likely to perceive the task as easy.
Base: PAYG Businesses (935)
Q7b Can you easily get the income tax information that you need from the Tax Office?
Table 15a: Ease of Accessing of PAYG Information from the ATOSummary
Base: PAYG Businesses (935)
Q7b Can you easily get the income tax information that you need from the Tax Office?
Table 15a: Ease of Accessing of PAYG Information from the ATOSummary
Not easily
10%
Not sure
7%
Not
required
9%
Easily
74%
7%
7%
6%
9%
9%
Not
Required
(86)
(166)
(197)
(154)
(603)
Base
#
Base: PAYG Businesses Note:
Note: Horizontal percentages
Q7b Can you easily get the income tax information that you need from the Tax Office?
Table 15b: Ease of Accessing of PAYG Information from ATO by turnover segment
Not SureNot EasilyEasily
1%
3%
10%
7%
7%
5%
13%
8%
11%
10%
TURNOVER SEGMENT
87%
77%
77%
74%
74%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
7%
7%
6%
9%
9%
Not
Required
(86)
(166)
(197)
(154)
(603)
Base
#
Base: PAYG Businesses Note:
Note: Horizontal percentages
Q7b Can you easily get the income tax information that you need from the Tax Office?
Table 15b: Ease of Accessing of PAYG Information from ATO by turnover segment
Not SureNot EasilyEasily
1%
3%
10%
7%
7%
5%
13%
8%
11%
10%
TURNOVER SEGMENT
87%
77%
77%
74%
74%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
Page 57 of 116
Need for More PAYG Information
In total 27% of SME businesses say that they would like more information on income tax from the ATO.
The SME businesses in the $10 to $50 million turnover segments demonstrated the highest information
requirement (33%), while the $100 to $250 million turnover segment demonstrated the lowest (19%
require more).
Base: PAYG Businesses (935)
Q8d. Would you like more income tax information from the Tax Office?
Table 16: Requirement for More ATO Sourced Information on PAYG
by turnover segment
Base: PAYG Businesses (935)
Q8d. Would you like more income tax information from the Tax Office?
Table 16: Requirement for More ATO Sourced Information on PAYG
by turnover segment
$100 to $250 million turnover (95)
$50 to $100 million turnover (183)
$10 to $50 million turnover (277)
$2 to $10 million turnover (380)
Total (935)
$100 to $250 million turnover (95)
$50 to $100 million turnover (183)
$10 to $50 million turnover (277)
$2 to $10 million turnover (380)
Total (935)
25%
33%
32%
19%
27%
Page 58 of 116
Recently Used Income Tax Information Sources
Tax professionals (70%) and ATO information sources (68% used at least one of the ATO website, business
portal or call centre) are used almost equally for sourcing PAYG information. The ATO website is, by far, the
most commonly used ATO tool in this regard.
Use of the ATO for PAYG information is higher amongst the SME businesses in the largest turnover
segment.
6%
7%
7%
6%
6%
None
Required
24%
14%
22%
18%
18%
Industry/
Professional
Body
71%
68%
72%
70%
70%
Accountant/
Tax Agent
76%
72%
68%
67%
68%
Total Tax
Office
(95)
(183)
(277)
(380)
(935)
Base
#
Base: PAYG Businesses
Note: Horizontal percentages
Q9e Which of the following sources, if any, have you recently used for information on Income Tax?
Table 17b: Recently Used PAYG Information Sources by turnover segment
Tax Office
Portal
Tax Office
Website
Tax Office
Call Centre
32%
35%
31%
28%
29%
71%
64%
62%
59%
60%
TURNOVER SEGMENT
15%
13%
14%
18%
17%
$100 to $250 million
turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
6%
7%
7%
6%
6%
None
Required
24%
14%
22%
18%
18%
Industry/
Professional
Body
71%
68%
72%
70%
70%
Accountant/
Tax Agent
76%
72%
68%
67%
68%
Total Tax
Office
(95)
(183)
(277)
(380)
(935)
Base
#
Base: PAYG Businesses
Note: Horizontal percentages
Q9e Which of the following sources, if any, have you recently used for information on Income Tax?
Table 17b: Recently Used PAYG Information Sources by turnover segment
Tax Office
Portal
Tax Office
Website
Tax Office
Call Centre
32%
35%
31%
28%
29%
71%
64%
62%
59%
60%
TURNOVER SEGMENT
15%
13%
14%
18%
17%
$100 to $250 million
turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
Base: PAYG Businesses (935)
Q9e Which of the following sources, if any, have you recently used for information on Income Tax?
Table 17a: Recently Used PAYG Information SourcesSummary
Base: PAYG Businesses (935)
Q9e Which of the following sources, if any, have you recently used for information on Income Tax?
Table 17a: Recently Used PAYG Information SourcesSummary
No information on PAYG required
Tax Office call centre
Industry or professional body to which you belong
Tax Office business portal, which businesses register to use
Tax Office website
Tax professional such as an accountant or tax agent
No information on PAYG required
Tax Office call centre
Industry or professional body to which you belong
Tax Office business portal, which businesses register to use
Tax Office website
Tax professional such as an accountant or tax agent
60%
29%
18%
17%
6%
70%
Used at least one ATO
source: 68%
Page 59 of 116
How Could the ATO Better Assist SMEs with Income Tax (PAYG) Compliance?
The majority of those who sourced the ATO for PAYG information were unable to nominate how the ATO
could improve their service. Most suggestions that were made tended to be of a fairly generic nature.
Base: PAYG Businesses who have used ATO services (654)
Q9f Is there anything specifically the Tax Office could do/could have done to better assist you or this business
with Income Tax compliance?
Table 18: How Could the ATO Better Assist SMEs with PAYG Compliance?
Base: PAYG Businesses who have used ATO services (654)
Q9f Is there anything specifically the Tax Office could do/could have done to better assist you or this business
with Income Tax compliance?
Table 18: How Could the ATO Better Assist SMEs with PAYG Compliance?
Reduce taxes/make it easier to pay
Give more notice on changes/time to comply with
changes
More knowledgeable staff/call centre staff
More information/updates
Make it easier/less complicated
Better website/search engine/user friendly/easy to
navigate/ access what's needed/ the portal
Shorter waiting times on the phones/improved
phone system
Reduce taxes/make it easier to pay
Give more notice on changes/time to comply with
changes
More knowledgeable staff/call centre staff
More information/updates
Make it easier/less complicated
Better website/search engine/user friendly/easy to
navigate/ access what's needed/ the portal
Shorter waiting times on the phones/improved
phone system
5%
4%
3%
3%
2%
2%
5%
Page 61 of 116
Incidence of Payment of FBT
Questions on FBT were restricted to those who answered „yes‟ to the question:
“Does this business usually pay Fringe Benefits Tax, also called FBT?”
Overall, 44% of SME businesses usually pay FBT. Whilst this is below the 55% figure recorded in 2008, the
wording of the questions was slightly different.
In 2008 respondents were asked:
“…which of the following tax obligations does this business have with the Tax Office?”
…which could mean that those who occasionally pay FBT could have been included in the „yes‟ response.
As shown below, the proportion who pay FBT increases with turnover – peaking at 87% amongst the $100
to $250 million turnover category, and falling to 39% in the $2 to $10 million segment.
Base: Total sample
Q7a. Does this business usually pay Fringe Benefits Tax, also called FBT?
Table 19a: Payment of FBT
by turnover segment
Base: Total sample
Q7a. Does this business usually pay Fringe Benefits Tax, also called FBT?
Table 19a: Payment of FBT
by turnover segment
$100 to $250 million turnover (101)
$50 to $100 million turnover (193)
$10 to $50 million turnover (300)
$2 to $10 million turnover (406)
Total (1,000)
$100 to $250 million turnover (101)
$50 to $100 million turnover (193)
$10 to $50 million turnover (300)
$2 to $10 million turnover (406)
Total (1,000)
39%
65%
84%
87%
44%
Page 62 of 116
FBT is most commonly paid in the Rental/Hiring/Real Estate, Finance/Insurance services,
Professional/Scientific/Technical services and Manufacturing and Wholesale sectors; least so in
Construction.
Base: Total sample
Q7a. Does this business usually pay Fringe Benefits Tax, also called FBT?
Table 19b: Payment of FBT
by industry sector
Base: Total sample
Q7a. Does this business usually pay Fringe Benefits Tax, also called FBT?
Table 19b: Payment of FBT
by industry sector
Wholesale (129)
Other (184)
Retail (91)
Construction (122)
Manufacturing (146)
Professional/Scientific/Technical Services (144)
Financial/Insurance Services (125)
Rental/Hiring/Real Estate (59)
Total (1,000)
Wholesale (129)
Other (184)
Retail (91)
Construction (122)
Manufacturing (146)
Professional/Scientific/Technical Services (144)
Financial/Insurance Services (125)
Rental/Hiring/Real Estate (59)
Total (1,000)
65%
54%
53%
49%
47%
39%
33%
25%
44%
Page 63 of 116
Understanding of FBT Obligations
Those who pay FBT were asked to indicate how well they understand their business FBT obligations.
Whilst most (84%) say that they understand their FBT obligations „well‟ or „very well‟, only 45% fall in the
„very well‟ category. A sizeable 17% admit to limited or no understanding.
Analysis by turnover segment shows no significant differences with levels of understanding showing a high
degree of consistency.
Base: Business pays FBT (603)
Q7b Overall, how well do you understand this business‟s FBT obligations?
Table 20a: Understanding of FBT Obligations Summary
Base: Business pays FBT (603)
Q7b Overall, how well do you understand this business‟s FBT obligations?
Table 20a: Understanding of FBT Obligations Summary
Not at all
well
5%
Well
39%
Not very
well
12%Very well
45%
3%
3%
5%
6%
12%
3%
3%
4%
5%
5%
Not at all
Well
(197)
(246)
(82)
(47)
*(29)
(86)
(166)
(197)
(154)
(603)
Base
#
Base: Business pays FBT
Note: Horizontal percentages; *Small sample size
Q7b Overall, how well do you understand this business‟s FBT obligations?
Table 20b: Understanding of FBT Obligations by business size
3%31%63%100+
Not Very
WellWellVery Well
10%
18%
13%
8%
2%
9%
10%
13%
12%
36%
46%
38%
46%
46%
34%
38%
39%
39%
50%20 to 99
EMPLOYEES
34%0 to 4
43%5 to 9
32%10 to 19
TURNOVER SEGMENT
49%
55%
47%
43%
45%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
3%
3%
5%
6%
12%
3%
3%
4%
5%
5%
Not at all
Well
(197)
(246)
(82)
(47)
*(29)
(86)
(166)
(197)
(154)
(603)
Base
#
Base: Business pays FBT
Note: Horizontal percentages; *Small sample size
Q7b Overall, how well do you understand this business‟s FBT obligations?
Table 20b: Understanding of FBT Obligations by business size
3%31%63%100+
Not Very
WellWellVery Well
10%
18%
13%
8%
2%
9%
10%
13%
12%
36%
46%
38%
46%
46%
34%
38%
39%
39%
50%20 to 99
EMPLOYEES
34%0 to 4
43%5 to 9
32%10 to 19
TURNOVER SEGMENT
49%
55%
47%
43%
45%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
Page 64 of 116
There are some quite significant variations by business industry sector, with the following sectors showing
a limited understanding:
manufacturing;
construction;
retail;
wholesale; and
professional/scientific/technical services
Conversely, those in the rental/hiring/real estate sector appear to feel particularly well informed, with 70%
indicating they understand their obligations „very well‟.
15%
6%
3%
7%
1%
1%
1%
9%
5%
Not at all
Well
(87)
(54)
(98)
(47)
(91)
(85)
(101)
*(40)
(603)
Base
#
Base: Business pays FBT (603)
Note: Horizontal percentages; *Small sample size
Q7b Overall, how well do you understand this business‟s FBT obligations?
Table 20c: Understanding of FBT Obligations by business sector
Not Very
WellWellVery Well
19%
17%
21%
10%
18%
11%
8%
1%
12%
38%
47%
44%
52%
46%
37%
38%
20%
39%
32%Retail
32%Manufacturing
30%Construction
28%Wholesale
SECTOR
35%
51%
53%
70%
45%
Professional/Scientific/Technical Services
Financial/Insurance Services
Other
Rental/Hiring/Real Estate
TOTAL
15%
6%
3%
7%
1%
1%
1%
9%
5%
Not at all
Well
(87)
(54)
(98)
(47)
(91)
(85)
(101)
*(40)
(603)
Base
#
Base: Business pays FBT (603)
Note: Horizontal percentages; *Small sample size
Q7b Overall, how well do you understand this business‟s FBT obligations?
Table 20c: Understanding of FBT Obligations by business sector
Not Very
WellWellVery Well
19%
17%
21%
10%
18%
11%
8%
1%
12%
38%
47%
44%
52%
46%
37%
38%
20%
39%
32%Retail
32%Manufacturing
30%Construction
28%Wholesale
SECTOR
35%
51%
53%
70%
45%
Professional/Scientific/Technical Services
Financial/Insurance Services
Other
Rental/Hiring/Real Estate
TOTAL
Page 65 of 116
Understanding of FBT tends to be lower amongst those who do not have an internal accountant (which tend
to be smaller SME businesses) but higher amongst those who are non or minimal users of external tax
consultants.
2%
6%
16%
3%
6%
11%
3%
2%
13%
3%
5%
Not at all
Well
8%46%30%(41)Did not use
(446)
(120)
(561)
(217)
(130)
(275)
(198)
(50)
(554)
(603)
Base
#
10%40%48%**Financial professional
16%37%42%Owner/proprietor/chairman/CEO/company secretary/administrator
Base: Business pays FBT (1000)Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper Q7b Overall, how well do you understand this business‟s FBT obligations?
Table 20d: Understanding of FBT Obligations by other variables
ROLE IN COMPANY
Not Very
WellWellVery Well
12%
12%
5%
12%
16%
15%
11%
12%
38%
39%
28%
40%
45%
48%
37%
39%
46%Online/web/portal
45%Moderate
56%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
43%Phone
INTERNAL ACCOUNTANT
37%
23%
48%
45%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
2%
6%
16%
3%
6%
11%
3%
2%
13%
3%
5%
Not at all
Well
8%46%30%(41)Did not use
(446)
(120)
(561)
(217)
(130)
(275)
(198)
(50)
(554)
(603)
Base
#
10%40%48%**Financial professional
16%37%42%Owner/proprietor/chairman/CEO/company secretary/administrator
Base: Business pays FBT (1000)Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper Q7b Overall, how well do you understand this business‟s FBT obligations?
Table 20d: Understanding of FBT Obligations by other variables
ROLE IN COMPANY
Not Very
WellWellVery Well
12%
12%
5%
12%
16%
15%
11%
12%
38%
39%
28%
40%
45%
48%
37%
39%
46%Online/web/portal
45%Moderate
56%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
43%Phone
INTERNAL ACCOUNTANT
37%
23%
48%
45%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
Page 66 of 116
Ease of Accessing FBT Information from the ATO
Those who pay FBT were asked to rate the ease of obtaining information from the ATO.
As we can see, the majority (61%) find the information easy to obtain. However, if we exclude the
respondents who selected „not sure‟ or „not required‟ in response to this question we find that 84% find the
information easily obtainable and 16% find it difficult to obtain.
Below we examine ease of accessing information by turnover segment.
As illustrated, those in the $100 to $250 million segment tend to be most satisfied with the ease of
obtaining information.
Base: Business pays FBT (603)
Q7b Can you easily get the FBT information from the Tax Office that you need?
Table 21a: Ease of Accessing of FBT Information from ATOSummary
Base: Business pays FBT (603)
Q7b Can you easily get the FBT information from the Tax Office that you need?
Table 21a: Ease of Accessing of FBT Information from ATOSummary
Not easily
11%
Not sure
12%
Not
required
16%Easily
61%
13%
11%
12%
18%
16%
Not
Required
(86)
(166)
(197)
(154)
(603)
Base
#
Base: Business pays FBT (603)
Note: Horizontal percentages
Q7c Can you easily get the FBT information from the Tax Office that you need?
Table 21b: Ease of Accessing of FBT Information from ATO by turnover segment
Not SureNot EasilyEasily
6%
9%
11%
13%
12%
9%
13%
12%
10%
11%
TURNOVER SEGMENT
72%
67%
66%
58%
61%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
13%
11%
12%
18%
16%
Not
Required
(86)
(166)
(197)
(154)
(603)
Base
#
Base: Business pays FBT (603)
Note: Horizontal percentages
Q7c Can you easily get the FBT information from the Tax Office that you need?
Table 21b: Ease of Accessing of FBT Information from ATO by turnover segment
Not SureNot EasilyEasily
6%
9%
11%
13%
12%
9%
13%
12%
10%
11%
TURNOVER SEGMENT
72%
67%
66%
58%
61%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
Page 67 of 116
Further scrutiny of the results reveals that those whose role in the business falls into the financial
professionals category are more likely to find the information easy to obtain than those who are in more
general management roles as shown in the table below.
Trend data reflects a modest downturn on this measure since 2008 (though it should be noted the
questions in the two studies differed).
10%
26%
16%
Not
Required
(446)
(120)
(603)
Base
#
Base: Business pays FBT (603)
Note: Horizontal percentages
Q7c Can you easily get the FBT information from the Tax Office that you need?
Table 21c: Ease of Accessing of FBT Information from ATO by financial versus non-financial professional
Not SureNot EasilyEasily
12%
12%
12%
12%
8%
11%
ROLE IN COMPANY
66%
54%
61%
Financial
Non-financial
TOTAL
10%
26%
16%
Not
Required
(446)
(120)
(603)
Base
#
Base: Business pays FBT (603)
Note: Horizontal percentages
Q7c Can you easily get the FBT information from the Tax Office that you need?
Table 21c: Ease of Accessing of FBT Information from ATO by financial versus non-financial professional
Not SureNot EasilyEasily
12%
12%
12%
12%
8%
11%
ROLE IN COMPANY
66%
54%
61%
Financial
Non-financial
TOTAL
Base: Total sample 2008 (1068); 2010 (1000)
2008: To what extend do you agree/disagree that „I can easily get the FBT information from the Tax Office
that I need‟?
2010 – Q7b: Can you easily get the FBT information from the Tax Office that you need?
Table 21d: Ease of Accessing of FBT Information from ATO Trends rate as easy to obtain
Base: Total sample 2008 (1068); 2010 (1000)
2008: To what extend do you agree/disagree that „I can easily get the FBT information from the Tax Office
that I need‟?
2010 – Q7b: Can you easily get the FBT information from the Tax Office that you need?
Table 21d: Ease of Accessing of FBT Information from ATO Trends rate as easy to obtain
61%
66%
2008 2010
Page 68 of 116
Need for More FBT Information
All respondents with FBT obligations were asked if they would like more information on FBT from the ATO.
Some 40% would like more information, 56% would not, and 4% were undecided.
By turnover segment we note a greater desire for more FBT information from the $10 to $50 million and
$100 to $250 million segments.
A comparison with 2008 results reveals less requirement for ATO sourced information on FBT (although it
should be noted the questions in the two studies differed).
Base: Total sample 2008 (1068); 2010 (1000)
2008: To what extend do you agree/disagree that „I would like more FBT information from the ATO‟?
2010 – Q7d: Would you like more FBT information from the Tax Office?
Table 22b: Requirement for More ATO Sourced Information on FBT Trends
Base: Total sample 2008 (1068); 2010 (1000)
2008: To what extend do you agree/disagree that „I would like more FBT information from the ATO‟?
2010 – Q7d: Would you like more FBT information from the Tax Office?
Table 22b: Requirement for More ATO Sourced Information on FBT Trends
40%
54%
2008 2010
Base: Pay FBT
Q7d. Would you like more information on FBT from the Tax Office?
Table 22a: Requirement for More ATO Sourced Information on FBT
by turnover segment
Base: Pay FBT
Q7d. Would you like more information on FBT from the Tax Office?
Table 22a: Requirement for More ATO Sourced Information on FBT
by turnover segment
$100 to $250 million turnover (101)
$50 to $100 million turnover (193)
$10 to $50 million turnover (300)
$2 to $10 million turnover (406)
Total (603)
$100 to $250 million turnover (101)
$50 to $100 million turnover (193)
$10 to $50 million turnover (300)
$2 to $10 million turnover (406)
Total (603)
38%
48%
42%
46%
40%
Page 69 of 116
Recently Used FBT Information Sources
Respondents who pay FBT were asked to indicate the sources of information they have recently used for
FBT.
As illustrated below, some 95% have sought information – with the most common source being external
financial providers (74%). Overall, 59% used one or more ATO service (at least one of ATO website,
business portal or call centre). The website was the most frequent ATO channel used.
Those in the higher turnover segments are more likely to use the services of the ATO for FBT information
and less likely than all other segments to confer with accountants/tax agents. The $100 to $250 million
segment is also frequent users of industry or professional bodies.
4%
9%
5%
6%
5%
None
Required
46%
27%
22%
20%
21%
Industry/
Professional
Body
62%
60%
70%
76%
74%
Accountant/
Tax Agent
69%
70%
61%
57%
59%
Total Tax
Office
(86)
(166)
(197)
(154)
(603)
Base
#
Base: Business pays FBT (603)
Note: Horizontal percentages
Q7e Which of the following sources, if any, have you recently used for information on FBT?
Table 23b: Recently Used FBT Information Sources by turnover segment
Tax Office
Portal
Tax Office
Website
Tax Office
Call Centre
32%
27%
22%
20%
21%
63%
67%
56%
53%
54%
TURNOVER SEGMENT
16%
11%
10%
6%
7%
$100 to $250 million
turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
4%
9%
5%
6%
5%
None
Required
46%
27%
22%
20%
21%
Industry/
Professional
Body
62%
60%
70%
76%
74%
Accountant/
Tax Agent
69%
70%
61%
57%
59%
Total Tax
Office
(86)
(166)
(197)
(154)
(603)
Base
#
Base: Business pays FBT (603)
Note: Horizontal percentages
Q7e Which of the following sources, if any, have you recently used for information on FBT?
Table 23b: Recently Used FBT Information Sources by turnover segment
Tax Office
Portal
Tax Office
Website
Tax Office
Call Centre
32%
27%
22%
20%
21%
63%
67%
56%
53%
54%
TURNOVER SEGMENT
16%
11%
10%
6%
7%
$100 to $250 million
turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
Base: Business pays FBT (603)
Q7e Which of the following sources, if any, have you recently used for information on FBT?
Table 23a: Recently Used FBT Information SourcesSummary
Base: Business pays FBT (603)
Q7e Which of the following sources, if any, have you recently used for information on FBT?
Table 23a: Recently Used FBT Information SourcesSummary
No information on FBT required
Seminars/ courses/ training, workshops, various providers
Tax Office call centre
Industry or professional body to which you belong
Tax Office business portal, which businesses register to use
Tax Office website
Tax professional such as an accountant or tax agent
No information on FBT required
Seminars/ courses/ training, workshops, various providers
Tax Office call centre
Industry or professional body to which you belong
Tax Office business portal, which businesses register to use
Tax Office website
Tax professional such as an accountant or tax agent
54%
21%
21%
7%
2%
5%
74%
Used at least one ATO
source: 59%
Page 70 of 116
How Could the ATO Better Assist SMEs with FBT Compliance?
Those who pay FBT and have sourced the ATO for information were asked if there was anything the ATO
could do to better assist with FBT compliance.
The majority (63%) were unable to come up with any recommendations and no one suggestion emerged
with any real degree of consistency.
Those who did comment, frequently made somewhat general suggestions:
more information
make it easier.
However, more specific ideas included:
guidelines and examples of how things work
a better website
more seminars, courses or workshops.
Base: Have used Tax Office for information on FBT (388)
Q7f Is there anything specifically the Tax Office could do/could have done to better assist you or this business
with FBT compliance?
Table 24: How Could the ATO Better Assist SMEs with FBT Compliance?
Base: Have used Tax Office for information on FBT (388)
Q7f Is there anything specifically the Tax Office could do/could have done to better assist you or this business
with FBT compliance?
Table 24: How Could the ATO Better Assist SMEs with FBT Compliance?
6%
6%
5%
5%
4%
4%
3%
2%
2%
12%
Give more notice on changes/time to comply with changes
Shorter waiting times on the phones/improved phone system
More seminars/courses/workshops
Send material in the post
Use email to provide information
More knowledgeable staff/call centre staff
Better website/search engine/user friendly/easy to navigate/ access what's needed/the portal
Make it easier/less complicated
Issue guidelines/examples of how things work/a checklist/manual
More information/updates
Give more notice on changes/time to comply with changes
Shorter waiting times on the phones/improved phone system
More seminars/courses/workshops
Send material in the post
Use email to provide information
More knowledgeable staff/call centre staff
Better website/search engine/user friendly/easy to navigate/ access what's needed/the portal
Make it easier/less complicated
Issue guidelines/examples of how things work/a checklist/manual
More information/updates
Page 72 of 116
Incidence of Involvement with CGT
Questions on CGT were asked for those respondents who:
reported a capital gain or loss in the 2008/09 financial year; and/or
expect to file a CGT return in the next two years.
Overall, 25% had reported a capital gain or loss in 2008/09 and 21% expected to file a CGT return in the
next couple of years. In net terms 31% qualified on either or both criteria.
As illustrated below those in the $50 to $100 million sector were somewhat less likely than all other
segments to have CGT obligations.
Those in the Rental/Hiring/Real Estate sector are most likely to have CGT obligations, while those in the
Professional/Scientific/Technical Services sector are least likely to do so.
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q8a Did this business report a capital gain or loss (also known as CGT) in the 2008/9 financial year?
Q8b. Do you expect to file a CGT return in the next two years?
Table 25a: Involvement in CGTby turnover segment
Net: Involved
Expect to file
CGT return in
next two years
Reported a
capital gain or
loss in 2008/9
25%
20%
26%
33%
31%
17%
17%
18%
22%
21%
TURNOVER SEGMENT
19%
10%
19%
27%
25%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q8a Did this business report a capital gain or loss (also known as CGT) in the 2008/9 financial year?
Q8b. Do you expect to file a CGT return in the next two years?
Table 25a: Involvement in CGTby turnover segment
Net: Involved
Expect to file
CGT return in
next two years
Reported a
capital gain or
loss in 2008/9
25%
20%
26%
33%
31%
17%
17%
18%
22%
21%
TURNOVER SEGMENT
19%
10%
19%
27%
25%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
31%24%23%(91)Manufacturing
33%25%26%(129)Financial/Insurance Services
34%22%30%(122)Other
54%32%47%(146)Rental/Hiring/Real Estate
(84)
(144)
(59)
(125)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q8a Did this business report a capital gain or loss (also known as CGT) in the 2008/9 financial year?
Q8b. Do you expect to file a CGT return in the next two years?
Table 25b: Involvement in CGTby business sector
Net: Involved
Expect to file
CGT return in
next two years
Reported a
capital gain or
loss in 2008/9
21%
26%
26%
26%
31%
16%
19%
17%
13%
21%
INDUSTRY SECTOR
16%
18%
19%
23%
25%
Professional/Scientific/Technical Services
Construction
Retail
Wholesale
TOTAL
31%24%23%(91)Manufacturing
33%25%26%(129)Financial/Insurance Services
34%22%30%(122)Other
54%32%47%(146)Rental/Hiring/Real Estate
(84)
(144)
(59)
(125)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q8a Did this business report a capital gain or loss (also known as CGT) in the 2008/9 financial year?
Q8b. Do you expect to file a CGT return in the next two years?
Table 25b: Involvement in CGTby business sector
Net: Involved
Expect to file
CGT return in
next two years
Reported a
capital gain or
loss in 2008/9
21%
26%
26%
26%
31%
16%
19%
17%
13%
21%
INDUSTRY SECTOR
16%
18%
19%
23%
25%
Professional/Scientific/Technical Services
Construction
Retail
Wholesale
TOTAL
Page 73 of 116
Understanding of CGT Obligations
A sizeable 33% of those with CGT obligations admit to not having a clear understanding of this subject.
Just 25% claim to understand the obligations „very well‟.
Analysis by business segment shows that those in the $50 to $100 million turnover segment appear to
have a better grasp of this subject.
Base: Business pays CGT (263)
Q8cb Overall, how well do you understand this business‟s CGT obligations?
Table 26a: Understanding of CGT Obligations Summary
Base: Business pays CGT (263)
Q8cb Overall, how well do you understand this business‟s CGT obligations?
Table 26a: Understanding of CGT Obligations Summary
Not at all
well
6%
Well
42%Not very
well
27%
Very well
25%
16%
6%
7%
4%
2%
-
10%
4%
6%
6%
Not at all
Well
(58)
(89)
(42)
*(31)
(42)
*(27)
*(38)
(73)
(125)
(263)
Base
#
Base: Business pays CGT (263)
Note: Horizontal percentages; *Small sample size
Q8c Overall, how well do you understand this business‟s CGT obligations?
Table 26b: Understanding of CGT Obligations by business size
9%39%36%100+
Not Very
WellWellVery Well
28%
39%
26%
21%
6%
16%
26%
28%
27%
39%
44%
44%
45%
60%
26%
39%
42%
42%
27%20 to 99
EMPLOYEES
32%0 to 4
26%5 to 9
10%10 to 19
TURNOVER SEGMENT
34%
48%
31%
24%
25%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
16%
6%
7%
4%
2%
-
10%
4%
6%
6%
Not at all
Well
(58)
(89)
(42)
*(31)
(42)
*(27)
*(38)
(73)
(125)
(263)
Base
#
Base: Business pays CGT (263)
Note: Horizontal percentages; *Small sample size
Q8c Overall, how well do you understand this business‟s CGT obligations?
Table 26b: Understanding of CGT Obligations by business size
9%39%36%100+
Not Very
WellWellVery Well
28%
39%
26%
21%
6%
16%
26%
28%
27%
39%
44%
44%
45%
60%
26%
39%
42%
42%
27%20 to 99
EMPLOYEES
32%0 to 4
26%5 to 9
10%10 to 19
TURNOVER SEGMENT
34%
48%
31%
24%
25%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
Page 74 of 116
Further analysis reveals that the financial professionals in the SME business have, perhaps, predictably, a
greater understanding of CGT matters. Also, we note that those businesses which have no internal
accounting resources are less well versed on the subject.
2%
7%
11%
5%
6%
2%
2%
13%
6%
5%
6%
Not at all
Well
37%51%1%(38)Did not use
(146)
(101)
(220)
(96)
(61)
(115)
(87)
(59)
(205)
(263)
Base
#
24%37%36%**Financial professional
31%44%18%Owner/proprietor/chairman/CEO/company secretary/ administrator
Base: Business pays FBT (263)Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Q8c Overall, how well do you understand this business‟s CGT obligations?
Table 26c: Understanding of CGT Obligations by other variables
ROLE IN COMPANY
Not Very
WellWellVery Well
23%
29%
26%
29%
26%
30%
26%
27%
41%
37%
42%
47%
36%
48%
39%
42%
32%Online/web/portal
23%Moderate
30%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
29%Phone
INTERNAL ACCOUNTANT
25%
16%
30%
25%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
2%
7%
11%
5%
6%
2%
2%
13%
6%
5%
6%
Not at all
Well
37%51%1%(38)Did not use
(146)
(101)
(220)
(96)
(61)
(115)
(87)
(59)
(205)
(263)
Base
#
24%37%36%**Financial professional
31%44%18%Owner/proprietor/chairman/CEO/company secretary/ administrator
Base: Business pays FBT (263)Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Q8c Overall, how well do you understand this business‟s CGT obligations?
Table 26c: Understanding of CGT Obligations by other variables
ROLE IN COMPANY
Not Very
WellWellVery Well
23%
29%
26%
29%
26%
30%
26%
27%
41%
37%
42%
47%
36%
48%
39%
42%
32%Online/web/portal
23%Moderate
30%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
29%Phone
INTERNAL ACCOUNTANT
25%
16%
30%
25%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
Page 75 of 116
Ease of Accessing CGT Information from the ATO
Respondents were asked to rate the ease of obtaining CGT information from the ATO.
Some 57% felt that they could easily obtain the information they needed, and 16% said that this was not
an easy task.
If we exclude the „not sure‟ and „not required‟ responses, we find that 78% find the information easy to
obtain and 22% not easy.
Whilst we need to be wary of small sample sizes, the results suggest that those in the largest turnover
segment are more positive with regard to this issue.
-
22%
15%
11%
11%
Not
Required
*(27)
*(38)
(73)
(125)
(263)
Base
#
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years (263)
Note: Horizontal percentages; *Small sample
Q8d Can you easily get the CGT information from the Tax Office that you need?
Table 27b: Ease of Accessing of CGT Information from ATO by turnover segment
Not SureNot EasilyEasily
6%
16%
19%
16%
16%
20%
9%
18%
16%
16%
TURNOVER SEGMENT
74%
53%
48%
58%
57%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
-
22%
15%
11%
11%
Not
Required
*(27)
*(38)
(73)
(125)
(263)
Base
#
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years (263)
Note: Horizontal percentages; *Small sample
Q8d Can you easily get the CGT information from the Tax Office that you need?
Table 27b: Ease of Accessing of CGT Information from ATO by turnover segment
Not SureNot EasilyEasily
6%
16%
19%
16%
16%
20%
9%
18%
16%
16%
TURNOVER SEGMENT
74%
53%
48%
58%
57%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years (263)
Q8d Can you easily get the CGT information from the Tax Office that you need?
Table 27a: Ease of Accessing of CGT Information from ATOSummary
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years (263)
Q8d Can you easily get the CGT information from the Tax Office that you need?
Table 27a: Ease of Accessing of CGT Information from ATOSummary
Not easily
16%
Not sure
16%
Not
required
11%
Easily
57%
Page 76 of 116
Need for More CGT Information
When asked whether they would like more information on CGT, 35% replied in the affirmative. Sixty-three
percent require no further information and 2% are unsure.
Those in the $50 to $100 million turnover segment are least in need of additional support.
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years
Q8d. Would you like more information on CGT from the Tax Office?
Table 28: Requirement for More ATO Sourced Information on CGT
By turnover segment
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years
Q8d. Would you like more information on CGT from the Tax Office?
Table 28: Requirement for More ATO Sourced Information on CGT
By turnover segment
$100 to $250 million turnover (27)
$50 to $100 million turnover (38)
$10 to $50 million turnover (73)
$2 to $10 million turnover (125)
Total (263)
$100 to $250 million turnover (27)
$50 to $100 million turnover (38)
$10 to $50 million turnover (73)
$2 to $10 million turnover (125)
Total (263)
35%
40%
25%
46%
35%
Page 77 of 116
Recently Used CGT Information Sources
Some 74% have recently obtained CGT information from an external tax professional, and 47% have used
the ATO (mentioned at least one of ATO website, business portal or call centre) – most often the ATO
website. Industry or professional bodies have been a source of CGT information for 14%.
Across all turnover segments the proportion seeking advice from tax professionals considerably outweighs
the proportion directly using the ATO services.
4%
25%
10%
11%
11%
None
Required
8%
6%
21%
13%
14%
Industry/
Professional
Body
83%
63%
75%
74%
74%
Accountant/
Tax Agent
57%
37%
38%
48%
47%
Total Tax
Office
*(27)
*(38)
(73)
(125)
(263)
Base
#
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years (263)
Note: Horizontal percentages; *Small sample
Q8f Which of the following sources have you recently used for information on CGT?
Table 29b: Recently Used CGT Information Sources by turnover segment
Tax Office
Portal
Tax Office
Website
Tax Office
Call Centre
13%
6%
16%
11%
12%
56%
37%
32%
42%
41%
TURNOVER SEGMENT
12%
3%
4%
9%
8%
$100 to $250 million
turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
4%
25%
10%
11%
11%
None
Required
8%
6%
21%
13%
14%
Industry/
Professional
Body
83%
63%
75%
74%
74%
Accountant/
Tax Agent
57%
37%
38%
48%
47%
Total Tax
Office
*(27)
*(38)
(73)
(125)
(263)
Base
#
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years (263)
Note: Horizontal percentages; *Small sample
Q8f Which of the following sources have you recently used for information on CGT?
Table 29b: Recently Used CGT Information Sources by turnover segment
Tax Office
Portal
Tax Office
Website
Tax Office
Call Centre
13%
6%
16%
11%
12%
56%
37%
32%
42%
41%
TURNOVER SEGMENT
12%
3%
4%
9%
8%
$100 to $250 million
turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years (263)
Q7e Which of the following sources, if any, have you recently used for information on CGT?
Table 29a: Recently Used CGT Information SourcesSummary
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years (263)
Q7e Which of the following sources, if any, have you recently used for information on CGT?
Table 29a: Recently Used CGT Information SourcesSummary
No information on CGT required
Other
Tax Office call centre
Tax Office business portal, which businesses register to use
Industry or professional body to which you belong
Tax Office website
Tax professional such as an accountant or tax agent
No information on CGT required
Other
Tax Office call centre
Tax Office business portal, which businesses register to use
Industry or professional body to which you belong
Tax Office website
Tax professional such as an accountant or tax agent
41%
14%
12%
8%
1%
11%
74%
Used at least one ATO
source: 47%
Page 78 of 116
How Could the ATO Better Assist SMEs with CGT Tax Compliance?
Those who have used ATO services were asked what the ATO could do better in the area of CGT. About
70% were unable to make any suggestions, with the most common responses summarised below.
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years and has used ATO
services (117)
Q8j Is there anything specifically the Tax Office could do/could have done to better assist you or this business
with CGT compliance?
Table 30: How Could the ATO Better Assist SMEs with CGT Compliance?
Base: Business has filed CGT return in FY 2008/09 or expects to do so in next 2 years and has used ATO
services (117)
Q8j Is there anything specifically the Tax Office could do/could have done to better assist you or this business
with CGT compliance?
Table 30: How Could the ATO Better Assist SMEs with CGT Compliance?
Define/provide clear info on specifics.
Use email to provide information
Shorter waiting times on the phones/improved phone system
More information/updates
More knowledgeable staff/call centre staff
Issue guidelines/examples of how things work/a checklist/manual
Give more notice on changes/time to comply with changes
Better website/search engine/user friendly/easy to navigate/ access what's needed/ the portal
Define/provide clear info on specifics.
Use email to provide information
Shorter waiting times on the phones/improved phone system
More information/updates
More knowledgeable staff/call centre staff
Issue guidelines/examples of how things work/a checklist/manual
Give more notice on changes/time to comply with changes
Better website/search engine/user friendly/easy to navigate/ access what's needed/ the portal
6%
5%
4%
4%
4%
2%
2%
7%
Page 79 of 116
Usage of the “Guide to Capital Gains Tax” Publication
Just under a quarter have used the ATO electronic publication “Guide to Capital Gains Tax‟ available on the
ATO website, including half of the SME businesses in the $100 to $250 million segment.
Users were asked to rate the publication on the dimensions of usefulness and ease of navigation.
As illustrated, attitudes to the publication are reasonably positive. In terms of usefulness in helping the
business meet its CGT obligations 84% found the publication useful to some degree, and just over four in
ten found it extremely or very useful.
Ease of navigation does not appear to be a concern with 90% finding this, at least, fairly easy.
*(27)
*(38)
(73)
(125)
(263)
(Base)
#
Base: Have filed a CGT return in FY 2008/09 or expect to do so in the next 2 years (263)
Note: Horizontal percentages; *Small sample
Q8g Have you used the Tax Office electronic publication called, “Guide to Capital Gains Tax” available on the
Tax Office website?
Table 31: Usage of the “Guide to Capital Gains Tax” Publication by turnover segment
Can’t SayNot UsedUsed
7%
5%
4%
3%
3%
43%
63%
73%
75%
74%
TURNOVER SEGMENT
50%
33%
23%
23%
23%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
*(27)
*(38)
(73)
(125)
(263)
(Base)
#
Base: Have filed a CGT return in FY 2008/09 or expect to do so in the next 2 years (263)
Note: Horizontal percentages; *Small sample
Q8g Have you used the Tax Office electronic publication called, “Guide to Capital Gains Tax” available on the
Tax Office website?
Table 31: Usage of the “Guide to Capital Gains Tax” Publication by turnover segment
Can’t SayNot UsedUsed
7%
5%
4%
3%
3%
43%
63%
73%
75%
74%
TURNOVER SEGMENT
50%
33%
23%
23%
23%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
Base: Used publication (65)
Q8h How would you rate the usefulness of the publication in helping this business meet its CGT obligations?
Q8i How would you rate the publication in terms of ease of navigating through the site to access the
information you require? Is it…
Table 32: Attitudes Towards the Publication
Summary
Base: Used publication (65)
Q8h How would you rate the usefulness of the publication in helping this business meet its CGT obligations?
Q8i How would you rate the publication in terms of ease of navigating through the site to access the
information you require? Is it…
Table 32: Attitudes Towards the Publication
Summary
Usefulness in helping businesses meet CGT obligationsUsefulness in helping businesses meet CGT obligations
28% 43% 11% 5%13%
Extremely useful Very useful Fairly Useful Not too/not at all useful Can't say
Ease of navigating to access required informationEase of navigating to access required information
31% 50% 9%10%
Extremely easy Very easy Fairly easy Not too/not at all easy Can't say
Page 81 of 116
Understanding of Tax Obligations
Whilst these three taxation areas are quite different it is of some interest to compare the levels of
understanding, perceived ease of access to information, perceived need for more information and use of
information sources.
In terms of understanding, it is clear that FBT and CGT are less well comprehended than PAYG.
Base: Have tax obligations (variable)
Note: Horizontal percentages
Q9b Overall how well do you understand this business‟s FBT/CGT/PAYG obligations?
Table 33: Understanding of Tax Obligations - Comparisons
Base: Have tax obligations (variable)
Note: Horizontal percentages
Q9b Overall how well do you understand this business‟s FBT/CGT/PAYG obligations?
Table 33: Understanding of Tax Obligations - Comparisons
84%
67%
59%
45%
42%
94%PAYG (935)
FBT (603)
CGT (263)
Well/extremely well Extremely well
Page 82 of 116
Ease of Accessing Tax Information from the ATO
Excluding the „not sure‟ and „not required‟ respondents, 88% find it easy to get the information on PAYG
that they need – placing PAYG the easiest business tax to obtain information on. CGT is the tax type where
information access is perceived to be least easy to access.
Base: Have tax obligations (variable) – excludes „not sure‟ and „not required‟
Note: Horizontal percentages
Q7b Can you easily get the PAYG/CGT/FBT information that you need from the Tax Office?
Table 34: Ease of Accessing Information from the ATO - Comparisons
Base: Have tax obligations (variable) – excludes „not sure‟ and „not required‟
Note: Horizontal percentages
Q7b Can you easily get the PAYG/CGT/FBT information that you need from the Tax Office?
Table 34: Ease of Accessing Information from the ATO - Comparisons
84%
78%
12%
16%
22%
88%PAYG (785)
FBT (434)
CGT (191)
Easy Not easy
Page 83 of 116
Need for More Tax Information
As illustrated below, FBT is the tax type which generates the greatest demand for more information; PAYG
the tax type which generates the least.
Base: Have tax obligations (variable) – excludes „not sure‟ and „not required‟
Note: Horizontal percentages
Q8d. Would you like more PAYG/CGT/FBT information from the Tax Office?
Table 35: Requirement for More Information from the ATO
Comparisons (require more)
Base: Have tax obligations (variable) – excludes „not sure‟ and „not required‟
Note: Horizontal percentages
Q8d. Would you like more PAYG/CGT/FBT information from the Tax Office?
Table 35: Requirement for More Information from the ATO
Comparisons (require more)
40%
35%
27%PAYG (935)
FBT (603)
CGT (263)
Page 84 of 116
Recently Used Tax Information Sources
The table below compares usage across the three tax categories. As illustrated, use of the ATO for sourcing
information tends to be lower for the more complex tax areas of CGT and FBT.
Base: Base: Have tax obligations (variable)
Note: Horizontal percentages
Q9e Which of the following sources, if any, have you recently used for information on PAYG/FBT/CGT?
Table 36: Recently Used Tax Information Sources - Comparisons
CGTFBTPAYG
11%
14%
74%
47%
12%
41%
8%
5%
21%
74%
59%
21%
54%
7%
68%Total Tax Office
70%Accountant/Tax Agent
18%Industry/Professional Body
7%None Required
17%Tax Office Call Centre
29%
60%
Tax Office Portal
Tax Office Website
Base: Base: Have tax obligations (variable)
Note: Horizontal percentages
Q9e Which of the following sources, if any, have you recently used for information on PAYG/FBT/CGT?
Table 36: Recently Used Tax Information Sources - Comparisons
CGTFBTPAYG
11%
14%
74%
47%
12%
41%
8%
5%
21%
74%
59%
21%
54%
7%
68%Total Tax Office
70%Accountant/Tax Agent
18%Industry/Professional Body
7%None Required
17%Tax Office Call Centre
29%
60%
Tax Office Portal
Tax Office Website
Page 86 of 116
Attitudes Towards Tax Compliance – Summary
Respondents were asked the extent to which they agreed with the following statements on the issue of tax
compliance:
“The complexity of the tax laws makes it difficult for businesses to comply with their tax
obligations”
“It is the responsibility of owners and directors to ensure their business is fully compliant
with tax obligations”
There is very strong opinion among SME businesses that the complexity of the tax laws makes it difficult
for them to comply with their tax obligations. Over two-thirds (68%) agree with this and just 26%
disagree.
Nevertheless, respondents almost invariably recognise that it is the business itself which has the onus to
ensure compliance. All but 4% agree that owners and directors have this responsibility.
Base: Total sample (1000)
Q6a Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 37: Attitudes to Compliance Summary
Base: Total sample (1000)
Q6a Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 37: Attitudes to Compliance Summary
31%
48%
65%
20%
2%
26%
Agree strongly Agree Disagree/disagree strongly Don't know
It is the responsibility of owners and directors to
ensure their business is fully compliant with tax
obligations
The complexity of the tax laws makes it difficult for
businesses to comply with their tax obligations
It is the responsibility of owners and directors to
ensure their business is fully compliant with tax
obligations
The complexity of the tax laws makes it difficult for
businesses to comply with their tax obligations
Page 87 of 116
The Complexity of Tax Laws Make Compliance Difficult
Perceptions on the complexity of the tax laws and impact on compliance are broadly consistent across the
various turnover segments, with the $100 to $250 million segment showing the highest agreement with
this statement.
However, there are some differences by industry sector with those in manufacturing more likely and those
in retail less likely to support this view.
(84)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q16 Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 38b: Attitudes to Compliance by business sector“The complexity of the tax laws makes it difficult for businesses to comply with their tax
obligations”
Net agreeDisagreeAgree
48%
34%
35%
53%
25%
37%
41%
52%
42%
22%
30%
31%
21%
34%
29%
26%
22%
26%
74%Financial/Insurance Services
66%Rental/Hiring/Real Estate
64%Professional/Scientific/Technical Services
70%Other
SECTOR
59%
66%
67%
74%
68%
Retail
Wholesale
Construction
Manufacturing
TOTAL
(84)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q16 Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 38b: Attitudes to Compliance by business sector“The complexity of the tax laws makes it difficult for businesses to comply with their tax
obligations”
Net agreeDisagreeAgree
48%
34%
35%
53%
25%
37%
41%
52%
42%
22%
30%
31%
21%
34%
29%
26%
22%
26%
74%Financial/Insurance Services
66%Rental/Hiring/Real Estate
64%Professional/Scientific/Technical Services
70%Other
SECTOR
59%
66%
67%
74%
68%
Retail
Wholesale
Construction
Manufacturing
TOTAL
47%
44%
41%
37%
44%
46%
36%
36%
43%
42%
Net agree
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q16 Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 38a: Attitudes to Compliance by business size“The complexity of the tax laws makes it difficult for businesses to comply with their tax
obligations”
25%72%100+
DisagreeAgree
28%
26%
26%
24%
26%
32%
31%
25%
26%
72%20 to 99
EMPLOYEES
68%0 to 4
63%5 to 9
67%10 to 19
TURNOVER SEGMENT
72%
68%
67%
68%
68%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
47%
44%
41%
37%
44%
46%
36%
36%
43%
42%
Net agree
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q16 Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 38a: Attitudes to Compliance by business size“The complexity of the tax laws makes it difficult for businesses to comply with their tax
obligations”
25%72%100+
DisagreeAgree
28%
26%
26%
24%
26%
32%
31%
25%
26%
72%20 to 99
EMPLOYEES
68%0 to 4
63%5 to 9
67%10 to 19
TURNOVER SEGMENT
72%
68%
67%
68%
68%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
Page 88 of 116
Those who have no internal accountant in the business are somewhat less likely to believe that the
complexity of tax laws make compliance difficult.
41%24%65%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
43%25%68%**Financial professional
42%28%70%Owner/proprietor/chairman/CEO/company secretary/ administrator
Base: Total sample Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper Q16 Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 38c: Attitudes to Compliance by other variables“The complexity of the tax laws makes it difficult for businesses to comply with their tax
obligations”
ROLE IN COMPANY
Net agreeDisagreeAgree
40%
46%
43%
39%
46%
31%
45%
42%
27%
25%
26%
28%
24%
29%
25%
26%
67%Online/web/portal
67%Moderate
69%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
71%Phone
INTERNAL ACCOUNTANT
70%
60%
70%
68%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
41%24%65%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
43%25%68%**Financial professional
42%28%70%Owner/proprietor/chairman/CEO/company secretary/ administrator
Base: Total sample Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper Q16 Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 38c: Attitudes to Compliance by other variables“The complexity of the tax laws makes it difficult for businesses to comply with their tax
obligations”
ROLE IN COMPANY
Net agreeDisagreeAgree
40%
46%
43%
39%
46%
31%
45%
42%
27%
25%
26%
28%
24%
29%
25%
26%
67%Online/web/portal
67%Moderate
69%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
71%Phone
INTERNAL ACCOUNTANT
70%
60%
70%
68%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
Page 89 of 116
It is the Responsibility of Owners and Directors to Ensure Their Business is Fully Compliant with Tax Obligations
Agreement with this statement is close to universal across the turnover segments falling in the high 90%
range within each.
Again, results are reasonably consistent across the business industry sectors – although those in Rental/
Hiring/Real Estate are less likely to strongly agree.
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q16 Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 39a: Attitudes to Compliance by business size“It is the responsibility of owners and directors to ensure their business is fully compliant with
tax obligations”
91%38%100+
Total AgreeAgree strongly
95%
95%
100%
96%
100%
97%
95%
96%
96%
30%20 to 99
EMPLOYEES
29%0 to 4
32%5 to 9
33%10 to 19
TURNOVER SEGMENT
31%
34%
36%
30%
31%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
(210)
(341)
(168)
(121)
(153)
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q16 Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 39a: Attitudes to Compliance by business size“It is the responsibility of owners and directors to ensure their business is fully compliant with
tax obligations”
91%38%100+
Total AgreeAgree strongly
95%
95%
100%
96%
100%
97%
95%
96%
96%
30%20 to 99
EMPLOYEES
29%0 to 4
32%5 to 9
33%10 to 19
TURNOVER SEGMENT
31%
34%
36%
30%
31%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
(84)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q16 Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 39b: Attitudes to Compliance by business sector“It is the responsibility of owners and directors to ensure their business is fully compliant with
tax obligations”
Total AgreeAgree strongly
92%
94%
94%
99%
98%
98%
95%
99%
96%
31%Financial/Insurance Services
22%Rental/Hiring/Real Estate
36%Professional/Scientific/Technical Services
31%Other
SECTOR
34%
30%
31%
35%
31%
Retail
Wholesale
Construction
Manufacturing
TOTAL
(84)
(144)
(59)
(125)
(91)
(129)
(122)
(146)
(1000)
Base
#
Base: Total sample
Note: Horizontal percentages
Q16 Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 39b: Attitudes to Compliance by business sector“It is the responsibility of owners and directors to ensure their business is fully compliant with
tax obligations”
Total AgreeAgree strongly
92%
94%
94%
99%
98%
98%
95%
99%
96%
31%Financial/Insurance Services
22%Rental/Hiring/Real Estate
36%Professional/Scientific/Technical Services
31%Other
SECTOR
34%
30%
31%
35%
31%
Retail
Wholesale
Construction
Manufacturing
TOTAL
Page 90 of 116
No significant differences are evident across the variables below, indicating that use of internal
accountants, external professionals, engagement with the ATO or role in business do not impact on
attitudes to this issue.
99%26%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
97%31%**Financial professional
95%32%Owner/proprietor/chairman/CEO/company secretary/
administrator
Base: Total sample
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Q16 Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 39c: Attitudes to Compliance by other variables“It is the responsibility of owners and directors to ensure their business is fully compliant with
tax obligations”
ROLE IN COMPANY
Total AgreeAgree strongly
95%
95%
97%
96%
96%
98%
95%
96%
32%Online/web/portal
29%Moderate
35%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
32%Phone
INTERNAL ACCOUNTANT
31%
25%
33%
31%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
99%26%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
97%31%**Financial professional
95%32%Owner/proprietor/chairman/CEO/company secretary/
administrator
Base: Total sample
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Q16 Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax
compliance?
Table 39c: Attitudes to Compliance by other variables“It is the responsibility of owners and directors to ensure their business is fully compliant with
tax obligations”
ROLE IN COMPANY
Total AgreeAgree strongly
95%
95%
97%
96%
96%
98%
95%
96%
32%Online/web/portal
29%Moderate
35%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
32%Phone
INTERNAL ACCOUNTANT
31%
25%
33%
31%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
Page 91 of 116
Suggested Initiatives to Assist SME with Tax Compliance
In total some 57% made suggestions when asked what was the one thing the ATO could do to assist with
tax compliance.
It is little wonder, given responses to the statement relating to tax law complexity, that the most common
suggestion for assisting in tax compliance is simplifying the process, mentioned by 30% who responded to
this question (or 16% overall).
Typical comments on the issue of simplification were:
“Just simplifying the rules and just listen to what people say. If the Tax Office has
commissioned this survey they have to listen to people and I can only assume that many people
will say about simplifying.”
“Make compliance easier and less complex and eliminate FBT – I think this tax is unfair.”
“Make compliance easier and make reporting to the Tax Office simpler.”
“Simplification of tax rules – making them easier to understand and comply with.”
Base: Total sample (1000)
Q21 Apart from reducing the level of tax, what is the one thing the Tax Office could do to assist you or this
business with tax compliance?
Table 40: Suggested ATO Initiatives to Assist SMEs with Tax Compliance
Base: Total sample (1000)
Q21 Apart from reducing the level of tax, what is the one thing the Tax Office could do to assist you or this
business with tax compliance?
Table 40: Suggested ATO Initiatives to Assist SMEs with Tax Compliance
Extend deadlines/ payment/ lodgement terms
Simplify legislation
Provide seminars/ training/ awareness
More information
Make information easier to understand/ clearer/
simple
Simplify the process/less complex/ easier
Extend deadlines/ payment/ lodgement terms
Simplify legislation
Provide seminars/ training/ awareness
More information
Make information easier to understand/ clearer/
simple
Simplify the process/less complex/ easier
5%
4%
3%
3%
3%
16%
Page 93 of 116
Phoenix Activities
Respondents were asked a number of questions about „Phoenix business‟ which were described in the
survey as.
“Businesses that go bankrupt leaving unpaid creditors then re-emerging under a different
name the next day.”
The table below summaries responses.
Relatively few SME businesses (34%) are aware that the ATO is targeting Phoenix businesses. This level of
awareness is consistent across the turnover segments (and also by location and industry sector, not
shown).
Amongst those who are aware of the ATO actions, there is widespread support with 93% in favour and just
3% against.
However, not all are convinced that the ATO is doing a good job in this area, with just 32% agreeing that
this is the case and 39% disagreeing.
53%38%39%31%32%Total Agree
21%42%31%41%39%Total Disagree
0%7%1%4%3%No
100%93%96%93%93%Yes
(33)(64)(101)(129)(327)(If Aware) Should the Tax Office be taking
action to curb Phoenix activities?
26%37%30%29%29%Can‟t Say
16%
23%
27%
5%
(327)
66%
34%
(1000)
Total
Table 41: Phoenix Activitiesby turnover segment
18%
23%
25%
6%
(129)
65%
34%
(406)
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million
2%
19%
47%
6%
(33)
63%
37%
(101)
5%
20%
36%
2%
(64)
63%
35%
(193)
25%Disagree
6%Strongly Disagree
32%Yes
36%
3%
(101)
68%
(300)
Agree
Agree strongly
(If Aware) To what extent do you agree or
disagree that the Tax Office is doing an
effective job curbing Phoenix activities?
No
Awareness of Tax Office activities
targeting Phoenix Businesses?
53%38%39%31%32%Total Agree
21%42%31%41%39%Total Disagree
0%7%1%4%3%No
100%93%96%93%93%Yes
(33)(64)(101)(129)(327)(If Aware) Should the Tax Office be taking
action to curb Phoenix activities?
26%37%30%29%29%Can‟t Say
16%
23%
27%
5%
(327)
66%
34%
(1000)
Total
Table 41: Phoenix Activitiesby turnover segment
18%
23%
25%
6%
(129)
65%
34%
(406)
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million
2%
19%
47%
6%
(33)
63%
37%
(101)
5%
20%
36%
2%
(64)
63%
35%
(193)
25%Disagree
6%Strongly Disagree
32%Yes
36%
3%
(101)
68%
(300)
Agree
Agree strongly
(If Aware) To what extent do you agree or
disagree that the Tax Office is doing an
effective job curbing Phoenix activities?
No
Awareness of Tax Office activities
targeting Phoenix Businesses?
Page 94 of 116
Corporate Governance
After respondents were given the corporate governance introduction.
“There is a lot of focus these days on good corporate governance, that is the responsibility of
business proprietors and directors to fully meet their legal and ethical obligations.”
…respondents were asked if they were personally involved in aspects of the business requiring them to
have responsibility for corporate governance.
Close to six in ten (58%) have this responsibility, 38% do not have a corporate governance role, and 4%
didn‟t know.
Those with corporate governance responsibility were asked the extent to which they agreed or disagreed
with three statements on this subject.
As illustrated, almost all agree that they have a „good knowledge‟ of their corporate governance
responsibilities (92%) and that tax compliance is a part of this responsibility (96% agree).
However, views are more mixed on the issue of whether corporate governance offers any benefits to the
business. Whilst 35% believe that it does not, and is merely an administrative burden, 60% do not share
this view.
Base: Responsibility for Corporate Governance (596)
Q6a Do you strongly agree, agree, disagree or strongly disagree with the following statements about corporate
governance?
Table 42a: Attitudes to Corporate Governance Summary
Base: Responsibility for Corporate Governance (596)
Q6a Do you strongly agree, agree, disagree or strongly disagree with the following statements about corporate
governance?
Table 42a: Attitudes to Corporate Governance Summary
42%
7%
63%
54%
28% 60%
29%
2%
6%
Agree strongly Agree Disagree/disagree strongly Don't know
Corporate governance does not offer any benefits
to this business, it is just another administrative
burden
It is part of my corporate governance responsibility
to ensure I comply with all aspects of the tax
regulations
I believe I have a good knowledge of my corporate
governance responsibilities
Corporate governance does not offer any benefits
to this business, it is just another administrative
burden
It is part of my corporate governance responsibility
to ensure I comply with all aspects of the tax
regulations
I believe I have a good knowledge of my corporate
governance responsibilities
Page 95 of 116
Below we examine attitudes by turnover segment.
Whilst there is agreement across the board on the first two statements, the issue of whether corporate
governance offers benefits to the businesses varies substantially across the turnover segments.
Businesses in the $2 to $10 million and $10 to $50 million segments are significantly more likely to
perceive corporate governance as a negative („administrative burden‟) than the higher turnover segments.
(55)(129)(181)(231)(596)Base
93%86%68%56%60%Total Disagree
6%14%30%37%35%Total Agree
0%1%3%1%1%Total Disagree
100%99%92%97%96%Total Agree
0%2%2%8%6%Total Disagree
100%97%97%90%92%Total Agree
Base: Responsibility for Corporate Governance?Q15 Do you strongly agree, agree, disagree or strongly disagree with the following statements about corporate
governance?
Corporate governance does not offer any benefits to this business, it is just another administrative burden
I believe I have a good knowledge of my corporate governance responsibilities
Total
Table 42b: Attitudes to Corporate Governance by turnover segment
$2 to $10Million
$100 to $250 million
$50 to $100 million
$10 to $50million
It is part of my corporate governance responsibility to ensure I comply with all aspects of the tax regulations
(55)(129)(181)(231)(596)Base
93%86%68%56%60%Total Disagree
6%14%30%37%35%Total Agree
0%1%3%1%1%Total Disagree
100%99%92%97%96%Total Agree
0%2%2%8%6%Total Disagree
100%97%97%90%92%Total Agree
Base: Responsibility for Corporate Governance?Q15 Do you strongly agree, agree, disagree or strongly disagree with the following statements about corporate
governance?
Corporate governance does not offer any benefits to this business, it is just another administrative burden
I believe I have a good knowledge of my corporate governance responsibilities
Total
Table 42b: Attitudes to Corporate Governance by turnover segment
$2 to $10Million
$100 to $250 million
$50 to $100 million
$10 to $50million
It is part of my corporate governance responsibility to ensure I comply with all aspects of the tax regulations
Page 96 of 116
International Dealings
Overall, 25% of the sample have international dealings of some type. This proportion rises to 62% of SME
businesses in the $100 to $250 million segment.
Businesses in the wholesale and manufacturing sectors are most likely to have international dealings while
businesses in the rental/hiring/real estate and construction sectors the least likely.
Base: Total sample (1000)
Q17a Does this business deal internationally through exporting, importing, running businesses off-shore, having
off-shore investments and the like?
Table 43a: International Dealingsby turnover segment
Base: Total sample (1000)
Q17a Does this business deal internationally through exporting, importing, running businesses off-shore, having
off-shore investments and the like?
Table 43a: International Dealingsby turnover segment
$100 to $250 million turnover (101)
$50 to $100 million turnover (193)
$10 to $50 million turnover (300)
$2 to $10 million turnover (406)
Total (1000)
$100 to $250 million turnover (101)
$50 to $100 million turnover (193)
$10 to $50 million turnover (300)
$2 to $10 million turnover (406)
Total (1000)
23%
32%
46%
62%
25%
Base: Total sample (1000)
Q17a Does this business deal internationally through exporting, importing, running businesses off-shore, having
off-shore investments and the like?
Table 43b: International Dealingsby industry sector
Base: Total sample (1000)
Q17a Does this business deal internationally through exporting, importing, running businesses off-shore, having
off-shore investments and the like?
Table 43b: International Dealingsby industry sector
Professional/Scientific/Technical Services (144)
Retail (91)
Rental/Hiring/Real Estate (59)
Construction (122)
Other (184)
Financial/Insurance Services (125)
Manufacturing (146)
Wholesale (129)
Total (1,000)
Professional/Scientific/Technical Services (144)
Retail (91)
Rental/Hiring/Real Estate (59)
Construction (122)
Other (184)
Financial/Insurance Services (125)
Manufacturing (146)
Wholesale (129)
Total (1,000)
59%
44%
25%
25%
23%
21%
7%
4%
25%
Page 97 of 116
The 25% who do engage in international activity were asked what type of information from the ATO would
be of assistance in international dealings.
The majority (approximately 70%) were unable to suggest any areas in which the ATO could assist.
Amongst those respondents who did offer a suggestion, the common requests were:
GST implications;
general information or guidelines; and
information on duty or customs
Base: Have international dealings (360)
Q17b What type of information from the Tax Office, if any, would be of assistance to this business in addressing
the tax aspects of international dealings?
Table 44: Help required from the ATO to assist with International Dealings
Base: Have international dealings (360)
Q17b What type of information from the Tax Office, if any, would be of assistance to this business in addressing
the tax aspects of international dealings?
Table 44: Help required from the ATO to assist with International Dealings
Information with regard to tax laws/legislation
Import tax
Withholding tax
More case studies/examples
Export tax
Transfer pricing
Information regarding tax treaties
International compliance/ tax rules/ transactions
Information regarding duty/customs
General information/clear information/guidelines
GST implications
Information with regard to tax laws/legislation
Import tax
Withholding tax
More case studies/examples
Export tax
Transfer pricing
Information regarding tax treaties
International compliance/ tax rules/ transactions
Information regarding duty/customs
General information/clear information/guidelines
GST implications
5%
5%
3%
3%
3%
2%
2%
2%
2%
2%
6%
Page 98 of 116
Business Exist/Succession Planning
Some 40% of SME businesses covered by the survey have some form of succession plan in place – with
this being somewhat more likely amongst the $10 to $50 million and $50 to $100 million segments.
Just under eight in ten (77%) of those with a succession plan say that the exit strategy includes taxation
obligations or consequences.
Overall, about 30% of all businesses have a tax plan of sorts for succession planning.
19%22%14%15%15%No
67%63%78%78%77%Yes
(42)(93)(138)(150)(423)(If Exit Strategy) Does plan include
taxation obligations/consequences?
8%
44%
40%
(1000)
Total
Base: Total sample
Q18a Do the owners of this business have an exit strategy or succession plan?
Q18b Does this plan or strategy include taxation obligations and consequences?
Table 45: Business Exits/Succession Planningby turnover segment
8%
47%
38%
(406)
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million
14%
30%
44%
(101)
14%
29%
51%
(193)
47%Yes
9%
36%
(300)
Not sure
No
Do owners have exit strategy/succession
plan?
19%22%14%15%15%No
67%63%78%78%77%Yes
(42)(93)(138)(150)(423)(If Exit Strategy) Does plan include
taxation obligations/consequences?
8%
44%
40%
(1000)
Total
Base: Total sample
Q18a Do the owners of this business have an exit strategy or succession plan?
Q18b Does this plan or strategy include taxation obligations and consequences?
Table 45: Business Exits/Succession Planningby turnover segment
8%
47%
38%
(406)
$2 to $10
million
$100 to $250
million
$50 to $100
million
$10 to $50
million
14%
30%
44%
(101)
14%
29%
51%
(193)
47%Yes
9%
36%
(300)
Not sure
No
Do owners have exit strategy/succession
plan?
Page 99 of 116
Trusts
Overall, 15% of the businesses included in the survey operate as a trust – with the incidence being skewed
towards the lower turnover segments.
The incidence of trusts peaks in the Rental/Hiring/Real Estate, Financial/Insurance Services, and
Construction sectors.
Base: Total sample
Q19a Does this business operate as a trust?
Table 46a: Trust statusby turnover segment
Base: Total sample
Q19a Does this business operate as a trust?
Table 46a: Trust statusby turnover segment
$100 to $250 million turnover (101)
$50 to $100 million turnover (193)
$10 to $50 million turnover (300)
$2 to $10 million turnover (406)
Total (1000)
$100 to $250 million turnover (101)
$50 to $100 million turnover (193)
$10 to $50 million turnover (300)
$2 to $10 million turnover (406)
Total (1000)
15%
13%
9%
7%
15%
Base: Total sample
Q19a Does this business operate as a trust?
Table 46b: Trust Statusby industry sector
Base: Total sample
Q19a Does this business operate as a trust?
Table 46b: Trust Statusby industry sector
21%
19%
18%
15%
14%
13%
10%
3%
15%
Retail (91)
Professional/Scientific/Technical Services (144)
Manufacturing (146)
Wholesale (129)
Other (184)
Construction (122)
Financial/Insurance Services (125)
Rental/Hiring/Real Estate (59)
Total (1,000)
Retail (91)
Professional/Scientific/Technical Services (144)
Manufacturing (146)
Wholesale (129)
Other (184)
Construction (122)
Financial/Insurance Services (125)
Rental/Hiring/Real Estate (59)
Total (1,000)
Page 100 of 116
Those who had trust status were asked if they had sought advice about trust obligations from specialists in
this field. A clear majority, 85%, had done so.
Base: Operate as a trust (112)
Q19b Has this business sought advice about trust obligations from specialists in this field?
Table 47: Has Business Sought Advice About Trust Obligations?
Base: Operate as a trust (112)
Q19b Has this business sought advice about trust obligations from specialists in this field?
Table 47: Has Business Sought Advice About Trust Obligations?
Not
sought
advice
11%
Not sure
5%
Sought
advice
85%
Page 101 of 116
Capital Management
The issue of capital management was introduced to respondents as follows.
“This section is about using business funds for private purposes such as payments, loans and
advances to share holders. This may not apply to this business’s arrangements.”
Firstly, respondents were asked if they were aware of the tax status of such activities.
As illustrated, whilst 73% were aware that such financial arrangements are treated as taxable income, a
high 21% were not aware of this and 6% were unsure.
Awareness levels are reasonably consistent across the turnover segments and by other key variables as
shown below and overleaf.
Base: Total sample (1000)
Q20a Payments, loans and advances made to shareholders are normally treated as taxable income. Before
today were you aware of this?
Table 48a: Awareness that Payments, Loans and Advances Made to
Shareholders are Normally Treated as Taxable Income
Base: Total sample (1000)
Q20a Payments, loans and advances made to shareholders are normally treated as taxable income. Before
today were you aware of this?
Table 48a: Awareness that Payments, Loans and Advances Made to
Shareholders are Normally Treated as Taxable Income
Not
aware
21%
Not sure
6%
Aware
73%
3%
6%
8%
5%
6%
Not sure
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample
Q20a Payments, loans and advances made to shareholders are normally treated as taxable income. Before
today were you aware of this?
Table 48b: Awareness that Payments, Loans and Advances Made to
Shareholders are Normally Treated as Taxable Income by turnover segment
Not awareAware
18%
22%
21%
21%
21%
SEGMENT
79%
72%
71%
74%
73%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
3%
6%
8%
5%
6%
Not sure
(101)
(193)
(300)
(406)
(1000)
Base
#
Base: Total sample
Q20a Payments, loans and advances made to shareholders are normally treated as taxable income. Before
today were you aware of this?
Table 48b: Awareness that Payments, Loans and Advances Made to
Shareholders are Normally Treated as Taxable Income by turnover segment
Not awareAware
18%
22%
21%
21%
21%
SEGMENT
79%
72%
71%
74%
73%
$100 to $250 million turnover
$50 to $100 million turnover
$10 to $50 million turnover
$2 to $10 million turnover
TOTAL
Page 102 of 116
Those aware of the tax status of payments, loans and advances, were asked what steps, if any, can be
taken to avoid tax implications.
A high proportion didn‟t know (42%), or felt that there are no steps which can be taken (19%).
The use of loan agreements was the action most often nominated.
Base: Aware that payments, loans and advances made to shareholders are normally treated as taxable income
(737)
Q20b What steps if any can be taken to avoid a tax implication if drawing on company funds for payments,
loans or advances?
Table 49: Steps Taken to Avoid a Tax Implication if Drawing on Company
Funds for Payments, Loans or Advances
Base: Aware that payments, loans and advances made to shareholders are normally treated as taxable income
(737)
Q20b What steps if any can be taken to avoid a tax implication if drawing on company funds for payments,
loans or advances?
Table 49: Steps Taken to Avoid a Tax Implication if Drawing on Company
Funds for Payments, Loans or Advances
None
Don‟t know
Loan agreements/contracts in place/division 7a
Tax withheld/franked payments
Remaining fully compliant with regulations/law
Take it out/pay it as wages/salary/draw a wage
Segregation of private and personal issues
Consider as dividends/pay dividends to cover it
Ensure all people are informed/understand implications
Make sure the paperwork is correct/well documented
Get the right advice/refer it to tax accountant
Avoid it in the first place/don't do it/internal policy
Loan agreements
None
Don‟t know
Loan agreements/contracts in place/division 7a
Tax withheld/franked payments
Remaining fully compliant with regulations/law
Take it out/pay it as wages/salary/draw a wage
Segregation of private and personal issues
Consider as dividends/pay dividends to cover it
Ensure all people are informed/understand implications
Make sure the paperwork is correct/well documented
Get the right advice/refer it to tax accountant
Avoid it in the first place/don't do it/internal policy
Loan agreements
19%
11%
7%
5%
4%
3%
3%
3%
2%
2%
2%
2%
42%
18%
23%
24%
20%
17%
24%
17%
23%
24%
20%
21%
Not aware
7%69%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
7%75%**Financial professional
5%73%
Owner/proprietor/chairman/CEO/company secretary/
administrator
Base: Total sample
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Q20a Payments, loans and advances made to shareholders are normally treated as taxable income. Before
today were you aware of this?
Table 48c: Awareness that Payments, Loans and Advances Made to
Shareholders are Normally Treated as Taxable Income by other variables
ROLE IN COMPANY
Not sureAware
6%
6%
10%
3%
6%
%
8%
5%
6%
74%Online/web/portal
80%Moderate
67%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
77%Phone
INTERNAL ACCOUNTANT
71%
68%
75%
73%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
18%
23%
24%
20%
17%
24%
17%
23%
24%
20%
21%
Not aware
7%69%(92)Did not use
(614)
(318)
(896)
(363)
(280)
(414)
(306)
(162)
(838)
(1000)
Base
#
7%75%**Financial professional
5%73%
Owner/proprietor/chairman/CEO/company secretary/
administrator
Base: Total sample
Note: Horizontal percentages; **Includes Chief Financial Officer, Financial Controller/Director of Finance,
Financial Manager, Accountant, Bookkeeper
Q20a Payments, loans and advances made to shareholders are normally treated as taxable income. Before
today were you aware of this?
Table 48c: Awareness that Payments, Loans and Advances Made to
Shareholders are Normally Treated as Taxable Income by other variables
ROLE IN COMPANY
Not sureAware
6%
6%
10%
3%
6%
%
8%
5%
6%
74%Online/web/portal
80%Moderate
67%Small/not at all
USED ATO PRODUCTS/SERVICES IN LAST YEAR
77%Phone
INTERNAL ACCOUNTANT
71%
68%
75%
73%
Substantial
USE OF EXTERNAL TAX PROFESSIONAL
No
Yes
TOTAL
Page 103 of 116
Accountants or tax agents (71%) are by far the predominant source for information in this area. Just 14%
nominated the ATO or its website.
Base: Aware that payments, loans and advances made to shareholders are normally treated as taxable income
(737)
Q20c Where might you go for information on how to avoid tax implications when drawing on company funds?
Table 50: Sources of Information on How to Avoid a Tax Implication if
Drawing on Company Funds for Payments, Loans or Advances
Base: Aware that payments, loans and advances made to shareholders are normally treated as taxable income
(737)
Q20c Where might you go for information on how to avoid tax implications when drawing on company funds?
Table 50: Sources of Information on How to Avoid a Tax Implication if
Drawing on Company Funds for Payments, Loans or Advances
Tax manuals/publications/ legislation
Not applicable/we would not do this
Nowhere, would do it in-house
Lawyer
Professional Body
ATO/tax website
Accountant/Tax Agent
Tax manuals/publications/ legislation
Not applicable/we would not do this
Nowhere, would do it in-house
Lawyer
Professional Body
ATO/tax website
Accountant/Tax Agent
14%
3%
3%
2%
1%
1%
71%
Page 105 of 116
Use of External Tax Professionals
As illustrated below, 91% make use of external tax professionals for tax advice or planning, consistent with
the 2008 data (94%).
A minority of 28% make substantial use of these bodies.
Usage of external tax professionals does not vary greatly across the turnover segments – although,
predictably, those without an internal accountant/bookkeeper (25% of businesses) are more likely to make
substantial use of externals than those with in-house resources.
Internal accountant/
bookkeeper usedTurnover segment
Total
11%
25%
31%
34%
(162)
No
9%
21%
44%
26%
(838)
Yes
(101)(193)(300)(406)(1000)Base
9%
22%
41%
28%
Base: Total sample
Q4c To what extent does this business use external tax professionals for tax advice and planning?
Table 51b: Extent to Which External Tax Professionals Usedby turnover segment and use of internal bookkeeper
11%
22%
40%
27%
$2 to $10
million
$100 to
$250
million
$50 to
$100
million
$10 to
$50
million
5%
21%
45%
29%
4%
19%
40%
37%
5%
21%
44%
31%
Not at all
A small amount
Moderately
Substantially
Internal accountant/
bookkeeper usedTurnover segment
Total
11%
25%
31%
34%
(162)
No
9%
21%
44%
26%
(838)
Yes
(101)(193)(300)(406)(1000)Base
9%
22%
41%
28%
Base: Total sample
Q4c To what extent does this business use external tax professionals for tax advice and planning?
Table 51b: Extent to Which External Tax Professionals Usedby turnover segment and use of internal bookkeeper
11%
22%
40%
27%
$2 to $10
million
$100 to
$250
million
$50 to
$100
million
$10 to
$50
million
5%
21%
45%
29%
4%
19%
40%
37%
5%
21%
44%
31%
Not at all
A small amount
Moderately
Substantially
Base: Total sample (1000)
Q4c To what extent does this business use external tax professionals for tax advice and planning?
Table 51a: Extent to Which External Tax Professionals Used Summary
Base: Total sample (1000)
Q4c To what extent does this business use external tax professionals for tax advice and planning?
Table 51a: Extent to Which External Tax Professionals Used Summary
Not at all
9%
Moderately
41%
Small
22%
Substantially
28%Total Use 2010 = 91%
Total Use 2008 = 94%
Page 106 of 116
Types of External Tax Professionals Used
Most of those using external tax professionals use accountants (88%), with 31% relying on tax agents and
10% bookkeepers. Whilst in 2008 the usage incidence for each of these tax professionals is higher, the
rank order is identical.
Although accountants are the predominant source in each segment, tax agents are more likely to be used
by the $10 million plus turnover businesses and less likely to be consulted by businesses with no internal
accounting resources.
Base: Use external tax professionals (938)
Q4d. Which, if any, of the following external tax professionals does this business use to manage some or all
business tax obligations?
Table 52a: Types of External Tax Professionals Used
Summary
Base: Use external tax professionals (938)
Q4d. Which, if any, of the following external tax professionals does this business use to manage some or all
business tax obligations?
Table 52a: Types of External Tax Professionals Used
Summary
Auditor
Tax lawyer/solicitor
Salary package service provider
Bookkeeper
Tax agent
Accountant/chartered accountant
Auditor
Tax lawyer/solicitor
Salary package service provider
Bookkeeper
Tax agent
Accountant/chartered accountant
59%
23%
9%
88%
31%
10%
4%
2%
1%
99%
2008 2010
-
-
Internal accountant/
bookkeeper usedTurnover segment
3%
9%
20%
98%
(146)
No
4%
10%
34%
85%
(793)
Yes
(97)(187)(284)(370)(938)
4%
10%
31%
88%
Total
Base: Use external tax professionals
Q4d. Which, if any, of the following external tax professionals does this business use to manage some or all
business tax obligations?
Table 52b: Types of External Tax Professionals Used by turnover segment
3%
11%
28%
90%
$2 to
$10
million
$100 to
$250
million
$50 to
$100
million
$10 to
$50
million
5%
4%
54%
71%
6%
4%
42%
84%
7%
4%
42%
82%
Salary package service provider
Bookkeeper
Tax agent
Accountant
Internal accountant/
bookkeeper usedTurnover segment
3%
9%
20%
98%
(146)
No
4%
10%
34%
85%
(793)
Yes
(97)(187)(284)(370)(938)
4%
10%
31%
88%
Total
Base: Use external tax professionals
Q4d. Which, if any, of the following external tax professionals does this business use to manage some or all
business tax obligations?
Table 52b: Types of External Tax Professionals Used by turnover segment
3%
11%
28%
90%
$2 to
$10
million
$100 to
$250
million
$50 to
$100
million
$10 to
$50
million
5%
4%
54%
71%
6%
4%
42%
84%
7%
4%
42%
82%
Salary package service provider
Bookkeeper
Tax agent
Accountant
Page 107 of 116
Satisfaction with External Tax Professionals
Satisfaction levels with external tax professionals are high – with 72% being „extremely‟ or „very satisfied‟
and most of the balance „fairly satisfied‟. Only 1% expressed any level of dissatisfaction.
Results suggest the SME businesses rate accountants and tax agents similarly, and both are rated more
favourably than bookkeepers.
Base: Use external tax professionals (938)
Q4c How satisfied are you with the advice you received from your external tax professionals?
Table 53a: Satisfaction with External Tax Professional Summary
Base: Use external tax professionals (938)
Q4c How satisfied are you with the advice you received from your external tax professionals?
Table 53a: Satisfaction with External Tax Professional Summary
Can't say
3%
Not too/not at all
satisfied
1%
Very satisfied
44%
Fairly satisfied
23%
Extremely
satisfied
28%
62%73%74%72%Extremely/very satisfied
3%1%2%3%Can‟t say
(70)(362)(785)(938)Base
1%
23%
44%
28%
Total
Base: Base: Use external tax professionals
Q4c How satisfied are you with the advice you received from your external tax professionals?
Table 53b: Satisfaction with External Tax Professional by tax professional category
2%
22%
45%
29%
Accountant BookkeeperTax agent
2%
33%
29%
33%
1%
26%
47%
26%
Not too/not at all satisfied
Fairly satisfied
Very satisfied
Extremely satisfied
62%73%74%72%Extremely/very satisfied
3%1%2%3%Can‟t say
(70)(362)(785)(938)Base
1%
23%
44%
28%
Total
Base: Base: Use external tax professionals
Q4c How satisfied are you with the advice you received from your external tax professionals?
Table 53b: Satisfaction with External Tax Professional by tax professional category
2%
22%
45%
29%
Accountant BookkeeperTax agent
2%
33%
29%
33%
1%
26%
47%
26%
Not too/not at all satisfied
Fairly satisfied
Very satisfied
Extremely satisfied
Page 108 of 116
APPENDIX 1: Trends in the Economic Health of the SME Sector (200 Employees or Less) Sourced from Sensis ® Business Index*
* The Sensis ® Business Index is an initiative of Sensis, the directories arm of Telstra. The Index was developed to
provide industry and Government with an ongoing measure of the economic health in the small and medium business
sector.
The survey covers all non-primary industry businesses employing up to 200 staff.
Page 109 of 116
Trends in Business Confidence
Since 1993 Sweeney Research have been monitoring the economic health of the small and medium
business sector (less than 200 employees) in Australia. The Sensis ® Business Index involves interviews
with 1,800 business proprietors each quarter and examines confidence in their business prospects for the
year ahead, expectations for the economy and, experiences and expectations across a range of key
business indicators. A selection of key highlights from the Sensis ® Business Index is discussed in the
pages to follow to provide some additional insights into the SME sector from a broader commercial
perspective.
One of the core questions in this survey is…
“Thinking about the next 12 months, how confident do you feel about your business
prospects?”
Trends over the past eight years are shown below.
The February Sensis 2009 survey registered the lowest level of business confidence since the survey began
in 1993. At this time, only 45% were confident about their business prospects and 33% were worried. At
12% the net balance (the difference between the percentage who are confident and the percentage who
are worried) was one-third the peak levels recorded in 2004. Since that time there has been resurgence in
confidence – testament to the resilience of the SME business community.
The May 2009 Sensis survey recorded the biggest quarterly rise in confidence since the survey began –
only to be exceeded in August 2009. In the latest (February 2010) survey, 65% were confident about their
future and only 15% were worried.
Of course the SME sector is far from homogenous when it comes to business confidence.
%
10%
20%
30%
40%
50%
60%
70%
80%
Aug-0
2N
ov-
02
Feb-
03
May-
03
Aug-
03
Nov-
03
Feb-0
4M
ay-
04
Aug
-04
Nov
-04
Feb-0
5M
ay-
05A
ug-0
5N
ov-
05
Feb-
06
May-
06A
ug-
06N
ov-
06
Feb-
07
May-
07
Aug-
07
Nov
-07
Feb-0
8M
ay-
08
Aug
-08
Nov
-08
Feb-0
9M
ay-
09A
ug-0
9N
ov-
09
Feb-
10
Confident Worried *Net Balance
Table 1: Long Term Trends in Business ConfidenceTable 1: Long Term Trends in Business Confidence
SOURCE: Sensis® Business Index
Sweeney Research – February 2010
*Net balance defined as the difference between the percentage
who are confident and the percentage who are worried
Page 110 of 116
The table below compares the confidence levels across the main business sectors.
As illustrated, confidence levels are highest in the cultural, recreation and personal services and
health and community services sectors, but are substantially lower in transport/storage sectors.
Confidence levels also vary by location, in February 2010, those in the Territories were the most confident,
while those in Victoria and NSW least positive about their future.
Table 2: Confidence by Business Sector – February 2010Table 2: Confidence by Business Sector – February 2010
49%15%64%Total
23%26%49%Transport/Storage
50%20%70%Retail Trade
50%15%65%Manufacturing
51%10%61%Wholesale Trade
51%14%65%Building/Construction
54%12%66%Finance and Insurance
55%13%68%Accommodation, Cafes and Restaurants
63%9%72%Communication Property & Business Services
70%9%79%Health and Community Services
74%7%81%Cultural, Recreational and Personal
*Net
BalanceWorriedConfident
49%15%64%Total
23%26%49%Transport/Storage
50%20%70%Retail Trade
50%15%65%Manufacturing
51%10%61%Wholesale Trade
51%14%65%Building/Construction
54%12%66%Finance and Insurance
55%13%68%Accommodation, Cafes and Restaurants
63%9%72%Communication Property & Business Services
70%9%79%Health and Community Services
74%7%81%Cultural, Recreational and Personal
*Net
BalanceWorriedConfident
SOURCE: Sensis® Business Index
Sweeney Research – February 2010
*Net balance defined as the difference between the percentage
who are confident and the percentage who are worried
Table 3: Confidence by State and Territory – February 2010Table 3: Confidence by State and Territory – February 2010
58%7%75%Australian Capital Territory
66%11%77%Northern Territory
52%14%66%Tasmania
50%15%65%Western Australia
52%15%66%South Australia
52%16%68%Queensland
46%15%61%Victoria
49%15%64%New South Wales
49%15%64%National
*Net
BalanceWorriedConfident
58%7%75%Australian Capital Territory
66%11%77%Northern Territory
52%14%66%Tasmania
50%15%65%Western Australia
52%15%66%South Australia
52%16%68%Queensland
46%15%61%Victoria
49%15%64%New South Wales
49%15%64%National
*Net
BalanceWorriedConfident
SOURCE: Sensis® Business Index
Sweeney Research – February 2010
*Net balance defined as the difference between the percentage
who are confident and the percentage who are worried
Page 111 of 116
Perceptions of the Economy
In addition to their own business confidence, SME proprietors are asked in the Sensis survey to comment
on their current perceptions of the economy (growth, slow down, standing still) and their expectations for
the next twelve months (better, worse, the same).
In the February 2009 Sensis survey respondents were more likely to believe that the economy was in a
growth phase rather than in slow down, and there was solid expectation that the Australian economy will
improve over the next twelve months.
As for business confidence, the long term trends on perceptions of the economy show a major resurgence
since late 2008 and early 2009.
Slow
down
13%
Standing
still
50%
Growth
37%
Same
35%
Worse
17%
Better
48%
Table 4: The Economy – February 2010Table 4: The Economy – February 2010
SOURCE: Sensis® Business Index
Sweeney Research – February 2010
The economy now The economy a year from now
-80%
-60%
-40%
-20%
%
20%
40%
60%
80%
Feb-
03
May
-03
Aug-
03
Nov-
03
Feb-
04
May
-04
Aug-
04
Nov-
04
Feb-
05
May
-05
Aug-
05
Nov-
05
Feb-
06
May
-06
Aug-
06
Nov-
06
Feb-
07
May
-07
Aug-
07
Nov-
07
Feb-
08
May
-08
Aug-
08
Nov-
08
Feb-
09
May
-09
Aug-
09
Nov-
09
Feb-
10
The Economy Now The Economy a Year from Now
Table 5: Perceptions of the Economy
Long term trends in * net balance
Table 5: Perceptions of the Economy
Long term trends in * net balance
SOURCE: Sensis® Business Index
Sweeney Research – February 2010
*Net balance defined as the difference between the percentage who
have a positive outlook and the percentage who have a negative
outlook
Page 112 of 116
Experience and Expectation on Key Indicators
Despite the resurgence in overall confidence measured in the Sensis survey, SME proprietors are by no
means experiencing the same level of success as they were in the past.
This is clearly evidenced by long term trends in the value of sales. Respondents are asked to report on
their experience in the last three months and their expectations for the three months to come.
As, illustrated, whilst the net balance for the last quarter experience is well above the low of late 2008/
early 2009, it remains in negative territory (32% experienced an increase and 32% a decrease).
Table 6: Value of Sales
Trends in *net balance
Table 6: Value of Sales
Trends in *net balance
SOURCE: Sensis® Business Index
Sweeney Research – February 2010
*Net balance defined as the difference between the percentage who
have a positive outlook and the percentage who have a negative
outlook
-30%
-20%
-10%
%
10%
20%
30%
40%
50%
Oct
-02
Jan-0
3A
pr-
03Ju
l-03
Oct
-03
Jan-0
4A
pr-
04Ju
l-04
Oct
-04
Jan-0
5A
pr-
05Ju
l-05
Oct
-05
Jan-0
6A
pr-
06Ju
l-06
Oct
-06
Jan-0
7A
pr-
07Ju
l-07
Oct
-07
Jan-0
8A
pr-
08Ju
l-08
Oct
-08
Jan-0
9A
pr-
09Ju
l-09
Oct
-09
Jan-1
0A
pr-
10
Experience Expectations
Experience and Expectations for the Three Months Ending:-
Page 113 of 116
Similarly, profitability levels have not yet returned to 2007 levels.
In terms of employment there was a sharp decrease in February in the proportion who reported an
increase in staff numbers and a lift in the proportion reporting a decrease. As a result, the net balance for
change in employment fell to one of the lowest figures on record.
Nevertheless, there are some signs that employment will trend upwards over the coming months.
Over the next 12 months (from February 2010) a sizeable 21% expect to see an increase in the size of
their workforce, and only 6% are forecasting shrinkage.
Table 7: Profitability
Trends in *net balance
Table 7: Profitability
Trends in *net balance
SOURCE: Sensis® Business Index
Sweeney Research – February 2010
*Net balance defined as the difference between the percentage who
have a positive outlook and the percentage who have a negative
outlook
-30%
-20%
-10%
%
10%
20%
30%
40%
50%
Oct
-02
Jan-0
3A
pr-
03Ju
l-03
Oct
-03
Jan-0
4A
pr-
04Ju
l-04
Oct
-04
Jan-0
5A
pr-
05Ju
l-05
Oct
-05
Jan-0
6A
pr-
06Ju
l-06
Oct
-06
Jan-0
7A
pr-
07Ju
l-07
Oct
-07
Jan-0
8A
pr-
08Ju
l-08
Oct
-08
Jan-0
9A
pr-
09Ju
l-09
Oct
-09
Jan-1
0A
pr-
10
Experience Expectations
Experience and Expectations for the Three Months Ending:-
Table 8: Size of Workforce
Trends in *net balance
Table 8: Size of Workforce
Trends in *net balance
SOURCE: Sensis® Business Index
Sweeney Research – February 2010
*Net balance defined as the difference between the percentage who
have a positive outlook and the percentage who have a negative
outlook
-10%
-5%
%
5%
10%
15%
20%
Oct
-02
Jan-0
3A
pr-
03Ju
l-03
Oct
-03
Jan-0
4A
pr-
04Ju
l-04
Oct
-04
Jan-0
5A
pr-
05Ju
l-05
Oct
-05
Jan-0
6A
pr-
06Ju
l-06
Oct
-06
Jan-0
7A
pr-
07Ju
l-07
Oct
-07
Jan-0
8A
pr-
08Ju
l-08
Oct
-08
Jan-0
9A
pr-
09Ju
l-09
Oct
-09
Jan-1
0A
pr-
10
Experience Expectations
Experience and Expectations for the Three Months Ending:-
Page 114 of 116
Concerns
Finally, we look at responses to the open-ended question in the February 2010 Sensis survey.
“As far as your business is concerned, what problems, if any, are you facing at the moment?”
As illustrated, lack of work is the primary concern being nominated by 17% of businesses. Cash flow, the
economic climate and finding or keeping quality staff, also emerge as key concerns.
Trends in the proportion citing lack of work/sales as a problem, shows that concern about this issue
peaked in November 2008 before declining. Nevertheless, the proportion of proprietors concerned about
lack of sales remains high relative to the early and mid 1990‟s.
Table 9: Prime Concerns – February 2010Table 9: Prime Concerns – February 2010
13%
9%
9%
6%
5%
4%
3%
3%
2%
2%
2%
17%Lack of work/sales
Cash flow
Economic climate
Finding/keeping staff
Paperwork/bureaucracy
Competition
Costs/overheads
Finance
Environment/local disasters
Tax
Employment costs
Time pressures No concerns = 35%
Q As far as your business is concerned, what problems, if any, are
you facing at the moment?SOURCE: Sensis® Business Index
Sweeney Research – February 2010
Table 10: Prime Concerns
Long term trends for „lack of work or sales‟
Table 10: Prime Concerns
Long term trends for „lack of work or sales‟
%
5%
10%
15%
20%
25%
Feb-
03
May-
03A
ug-0
3N
ov-0
3Feb-
04
May-
04A
ug-0
4N
ov-0
4Feb-
05
May-
05A
ug-0
5N
ov-0
5Feb-
06
May-
06A
ug-0
6N
ov-0
6Feb-
07
May-
07A
ug-0
7N
ov-0
7Feb-
08
May-
08A
ug-0
8N
ov-0
8Feb-
09
May-
09A
ug-0
9N
ov-0
9Feb-
10
SOURCE: Sensis® Business Index
Sweeney Research – February 2010
Page 115 of 116
By contrast, we note that worries about finding or keeping staff declined during the GFC period but is now
re-emerging as a concern for SMEs.
Returning to Table 9, we note that only a small proportion (2%) spontaneously nominated tax as an issue
of concern. However, the issue of paperwork/bureaucracy was more of a worry, being nominated by
6%.
This may suggest that it is not so much the cost of tax which can be burden, but the complexity
of compliance.
In summary, an analysis of the Sensis ® Business Index findings suggests that the SME sector in Australia
has weathered the storm of the GFC and that confidence levels are lifting. Nevertheless, there is still some
way to go before we reach the buoyancy of the mid 90‟s.
Table 11: Prime Concerns
Long term trends for „finding/keeping staff‟
Table 11: Prime Concerns
Long term trends for „finding/keeping staff‟
%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Nov
-04
Feb-
05
May-
05A
ug-0
5N
ov-0
5Feb-
06
May-
06A
ug-0
6N
ov-0
6Feb-
07
May-
07A
ug-0
7N
ov-0
7Feb-
08
May-
08A
ug-0
8N
ov-0
8Feb-
09
May-
09A
ug-0
9N
ov-0
9Feb-
10
SOURCE: Sensis® Business Index
Sweeney Research – February 2010
Page 1 of 13
Understanding the SME Market Segment Research
Australian Taxation Office SCH Approval No. 01980-02
Study No. 19099
Client Tax Office
Version SCH Version 10 FINAL – 10th February 2010
Research Consultant Aliza Sebel
QUOTAS SME Segment Target Sample
$2 to 10 million turnover 400
$10 to 50 million turnover 300
$50 to 100 million turnover 200
$100 to 250 million turnover 100
GEOGRAPHIC QUOTAS State Target Sample
NSW 330
VIC 260
QLD 190
WA 120
SA 60
TAS 20
NT 10
ACT 10
INTRODUCTION
UPON CALL BEING ANSWERED IF NECESSARY SAY: Could I check that I have called [DROP IN BUSINESS NAME].
Yes Continue 1 No Thank & Terminate 2
Hello, my name is (INTERVIEWER) from Sweeney Research. Could I please speak to the person within this business who is best able to comment on taxation matters?
UPON CONTACT WITH RESPONDENT. Hello, my name is (INTERVIEWER) from Sweeney Research. Could I just confirm that you are the person best able to comment on the businesses’ taxation matters?
IF YES: CONTINUE; IF NO: Ask who would that be?
Page 2 of 13
UPON CONTACT: REINTRODUCE AS NECESSARY.
We are conducting a survey of Australian businesses on behalf of the Australian Taxation Office. Your participation in the survey is important because it will help the Tax office provide better support and assistance to businesses to meet their tax obligations. The survey is about attitudes and opinions towards the Tax Office and does not require disclosure of any details of financial or tax affairs whatsoever. Even if the businesses’ taxation matters are handled by an external accountant, tax agent or bookkeeper we are still very interested in your opinions. This survey has been approved by the Australian Government Statistical Clearing House. The Approval Number is 01980-2. You could verify this approval number by phoning the Statistical Clearing House on 02 6252 5285.
Your participation in the survey is voluntary. If you choose to participate, your answers will be treated in the strictest of confidence and no individual responses will be provided to the Tax Office at any time.
Depending on your answers the survey will take between 10 and 15 minutes. Would you be willing to participate in the survey?
IF YES, CONTINUE.
IF YES BUT NOT NOW, ARRANGE CALL BACK.
IF NO, THANK AND TERMINATE.
IF RESPONDENT WISHES TO SPEAK TO SWEENEY RESEARCH SUPERVISOR: Please contact my supervisor on this toll free number 1800357739 if you would like further information about the study.
IF QUERIED AS TO WHY THE TAX OFFICE IS SURVEYING BUSINESSES: Your participation in this survey is important because it will help the Tax Office to ensure that adequate information, assistance and support is being provided to businesses to meet their tax obligations.
IF QUERIED AS TO HOW SWEENEY RESEARCH GOT THE CONTACT DETAILS: The Tax Office supplied Sweeney Research with your contact details for the purpose of conducting this specific survey on their behalf. Therefore I am bound by the same secrecy and privacy laws as a tax officer. This means I cannot disclose or use your name and contact details for any other purpose than this research. Your business was selected randomly.
IF QUERIED ABOUT BONA FIDES OF RESEARCH: If you would like to verify the legitimacy of this research study, please contact the TAX Office on 13 28 69 asking for Liz Andrews on extension 52459.
AUTO RECORD FROM DATA BASE: Location: ANZSIC Classification: Client Type: Client Sub-type: Sub-segment (Quota based S1 to S4)
Page 3 of 13
SECTION 1: BUSINESS CHARACTERISTICS
Q1 What is your MAIN role in this business?
DO NOT READ OUT.
Chairman 01 President 02 Owner/proprietor/director 03 Chief Executive Officer 04 Managing Director 05 General Manager 06 Business Manager 07 Chief Financial Officer 08 Financial Controller/Director of Finance 09 Financial Manager 10 Accountant 11 Bookkeeper 12 Company Secretary 13 Administrative officer 14 Other Please specify 15 (Don’t know/refused) 99
Q2 How many years has this business been operating in Australia with the current business owners?
DO NOT READ OUT.
Less than 1 year 01 1 – 2 years 02 2 – 3 years 03 3 – 5 years 04 5 – 9 years 05 10 or more years 06 (Don’t know/refused) 99
Q3 Is this business owned by another business?
Yes 01 No 02 (Don’t know/refused) 99
Q4a Does this business own any other businesses?
Yes 01 No 02 (Don’t know/refused) 99
ASK Q4b IF Q1 NOT CODES 11 OR 12 Q4b Does this business employ an
internal Accountant or Bookkeeper? Yes 01 No 02 (Don’t know/refused) 99
Q4c To what extent does this business use external tax professionals for tax advice and planning?
READ OUT.
A substantial amount 1 A moderate amount 2 A small amount 3 Not at all Skip to Q5 4
Page 4 of 13
Q4d Which, if any, of the following external tax professionals does this business use to manage some or all business tax obligations?
READ OUT.
Tax agent 1 Accountant/chartered accountant 2 Bookkeeper 3 Salary package service provider 4 Other tax professional Please specify 5
Q4e How satisfied are you with the advice you received from your external tax professionals? Are you… READ OUT
Extremely satisfied 1 Very satisfied 2 Fairly satisfied 3 Not too satisfied 4 Not at all satisfied 5 (Can’t say/don’t know) 6
Q5 Including full-time and part-time staff but not contractors and casuals, how many people does this business employ in Australia?
DO NOT READ OUT.
No other employees (just self/sole trader) 1 2 employees 2 3-4 employees 3 5-9 employees 4 10-19 employees 5 20-99 employees 6 100 or more employees 7 No paid employees 8 Don’t know/not sure 9
SECTION 2: ATTITUDES TO THE TAX OFFICE AND TAXATION
Q6 I’d like to read out some statements about the Tax Office and taxation. Please indicate whether you strongly agree, agree, disagree or strongly disagree with the following… RANDOMISE ORDER.
Strongly Agree Agree Disagree
Strongly Disagree
(Don’t know/
Refused)
a. The Tax Office provides me with the information I need to manage the tax affairs of this business 1 2 3 4 5
b. The advice given by the Tax Office provides me with the certainty I need to manage the tax affairs of this business
1 2 3 4 5
c. The Tax Office does a good job in educating and informing the business community about taxation matters
1 2 3 4 5
d. The Tax Office treats this business fairly and reasonably 1 2 3 4 5
SECTION 3: FRINGE BENEFITS TAX (FBT)
Q7a Does this business usually pay Fringe Benefits Tax, also called FBT?
Yes 1 No Skip to section 4 2 Not sure Skip to section 4 3
Page 5 of 13
Q7b Overall, how well do you understand this business’s FBT obligations?
READ OUT.
Very well 1 Well 2 Not very well 3 Not at all well 4
Q7c Can you easily get the FBT information from the Tax Office that you need?
Yes 1 No 2 Not sure 3 Not applicable/don’t need information 4
Q7d Would you like more FBT information from the Tax Office?
Yes 1 No 2 Not sure 3
Q7e Which of the following sources, if any, have you recently used for information on FBT?
READ OUT. MULTIPLE OK.
Tax Office call centre 1 Tax Office website 2 Tax Office business portal, which businesses register to use 3 Tax professional such as an accountant or tax agent 4 Industry or professional body to which you belong 5 Other Please specify 6 No information on FBT required 7
ASK IF CODES 1, 2 OR 3 IN Q7e; OTHERS GO TO Q8a
Q7f Is there anything specifically the Tax Office could do (could have done) to better assist you or this business with FBT compliance?
SECTION 4: CAPITAL GAINS TAX
Q8a Did this business report a capital gain or loss (also known as CGT), in the 2008/09 financial year?
Yes 1 No 2 Not sure 3
Q8b Do you expect to file a CGT return in the next 2 years?
Yes 1 No 2 Not sure 3
IF NO OR UNSURE TO Q8a AND Q8b SKIP TO SECTION 5.
Q8c Overall, how well do you understand this business’s CGT obligations?
READ OUT.
Very well 1 Well 2 Not very well 3 Not at all well 4
Page 6 of 13
Q8d Can you easily get the CGT information that you need from the Tax Office?
Yes 1 No 2 Not sure 3 Not applicable/don’t need information 4
Q8e Would you like more CGT information from the Tax Office?
Yes 1 No 2 Not sure 3
Q8f Which of the following sources have you recently used for information on CGT?
READ OUT. MULTIPLE OK.
Tax Office call centre 1 Tax Office website 2 Tax Office business portal, which businesses register to use 3 Tax professional such as an accountant or tax agent 4 Industry or professional body to which you belong 5 Other Please specify 6 No information on CGT required 7
Q8g Have you used the Tax Office electronic publication called, “Guide to Capital Gains Tax” available on the Tax Office website?
Yes Continue 1 No Go to Q8j 2 Not sure Go toQ8j 3
Q8h How would you rate the usefulness of the publication in helping this business meet its CGT obligations?
READ OUT.
Extremely useful 1 Very useful 2 Fairly useful 3 Not too useful 4 Not at all useful 5 (Can’t say/don’t know) 6
Q8i How would you rate the publication in terms of ease of navigating through the site to access the information you require? Is it…
READ OUT.
Extremely easy to navigate 1 Very easy to navigate 2 Fairly easy to navigate 3 Not too easy to navigate 4 Not at all easy to navigate 5 (Can’t say/don’t know) 6
ASK Q8j IF CODES 1, 2 OR 3 IN Q8f; OTHERS GO TO SECTION 5
Q8j Is there anything specifically the Tax Office could do (could have done) to better assist you or this business with CGT compliance?
SECTION 5: INCOME TAX
Q9a Is this business a part of the Pay as you go system, known as PAYG?
Yes 1 No Go to section 6 2 Unsure Go to section 6 3
Page 7 of 13
Q9b Overall how well do you understand this business’s PAYG obligations?
READ OUT.
Very well 1 Well 2 Not very well 3 Not at all well 4
Q9c Can you easily get the income tax information that you need from the Tax Office?
Yes 1 No 2 Not sure 3 Not applicable/don’t need information 4
Q9d Would you like more income tax information from the Tax Office?
Yes 1 No 2 Not sure 3
Q9e Which of the following sources, if any, have you recently used for information on Income Tax?
READ OUT. MULTIPLE OK.
Tax Office call centre 1 Tax Office website 2 Tax Office business portal, which businesses register to use 3 Tax professional such as an accountant or tax agent 4 Industry or professional body to which you belong 5 Other Please specify 6 No information on Income Tax required 7
IF CODES 1, 2 OR 3 IN Q9e; OTHERS GO TO SECTION 6
Q9f Is there anything specifically the Tax Office could do (could have done) to better assist you or this business with Income Tax compliance?
SECTION 6: PRODUCTS, SERVICES AND TOOLS
Q10a Have you used the following Tax Office products or services in the last 12 months?
READ OUT.
The Tax Office business portal, which businesses register to use 1
Tax Office website 2
Tax Office legal database 3 Online version of calculators/other tools 4 SME Communicator 5 SME Tax Forum 6 Tax Office business tax enquiries line – 13 28 66 7 Tax Office online subscription feature 8 None of these Ask Q10b then go to Section 7 9
Q10b Are there any other Tax Office products, services or tools that you have used in the last 12 months?
Yes – RECORD VERBATIM 1 No 2 Can’t recall/don’t know 3
Page 8 of 13
Q10c FOR EACH PRODUCT/SERVICE/TOOL USED AT Q10a How would you rate the usefulness of [insert name of product/service] in helping this business meet its tax
obligations? Would you say [Insert Product Service] is… READ OUT. RANDOMISE ORDER.
Extremely useful
Very useful
Fairly useful
Not too useful
Not at all useful
Can’t say/don’t
know
a. The Tax Office business portal 1 2 3 4 5 6
b. Tax Office website 1 2 3 4 5 6
c. Tax Office legal database 1 2 3 4 5 6
d. Online version of calculators/other tools 1 2 3 4 5 6
e. SME Communicator 1 2 3 4 5 6
f. SME Tax Forum 1 2 3 4 5 6
g. Tax Office business tax enquiries line – 13 28 66 1 2 3 4 5 6
h. Tax Office online subscription feature 1 2 3 4 5 6
SECTION 7: CHANNEL
Q11 For this business, what is the most preferred method of obtaining tax information from the Tax Office?
READ OUT. SINGLE RESPONSE ONLY.
Tax Office Website 1 Tax Office business portal, which businesses register to use 2 Email from/to the Tax Office 3 By calling the Tax Office 13 28 66 business enquiry line 4 Paper mail from/to the Tax Office 5 If queried: Hardcopy publication By visiting the Tax Office 6 Through Tax Office seminars provided by the Tax Office 7 (No preference) 8
SECTION 8: PROFESSIONAL, BUSINESS OR INDUSTRY ASSOCIATION MEMBERSHIP
Q12a Are you personally a member of any professional association/s?
Yes Continue 1 No Go to Q12c 2 Don’t know/not sure Go to Q12c 3
Q12b Which association/s are you personally a member of?
DO NOT READ OUT.
Certified Practising Accountant (CPA) 01 Institute of Chartered Accountants in Australia (ICAA) 02 National Institute of Accountants 03 Law Institute – Various State Bodies 04 Other Please specify 05 Don’t know/not sure 99
Q12c Is this business a member of any industry or business association/s?
Yes Continue 1 No Go to Section 9 2 Don’t know/not sure Go to Section 9 3
Page 9 of 13
Q12d Which associations is this business a member of?
DO NOT READ OUT.
Australian Institute Of Company Directors (AICD) 01 Australian Institute Of Management (AIM) 02 Australian Business Limited 03 Australian Industry Group (AIG) 04 Automobile Chambers Of Commerce – Various State Bodies 05 Business Council Of Australia (BCA) 06 Chamber Of Commerce And Industry (NFI) 07 Chamber Of Commerce (NFI) 08 Employers Chambers Of Commerce And Industry – Various State Bodies 09 Family Business Australia (FBA) 10 HIA - Housing Industry Association 11 Master Builders Association 12 Motor Trade Association Of Australia 13 Motor Traders Associations – Various State Bodies 14 Small Business Association Of Australia 15 Other Please specify 16 Don’t know/not sure 99
SECTION 9: GLOBAL FINANCIAL CRISIS
Q13a Which of the following statements best describes the impact of the global financial crisis on this business…? READ OUT
It has had a positive impact 1 It has had minimal or no impact 2 It has had a negative impact but this business has fully recovered or is recovering 3 It has had a negative impact and this business has not shown any signs of recovery 4 (Can’t say/refused) 5
ASK Q13b IF Q13a CODES 3 OR 4 Q13b What strategies, if any, have you adopted to overcome the negative impacts of the global financial crisis?
SECTION 10: PHOENIX
Q14a Have you heard of Tax Office activities targeting Phoenix businesses, that is businesses that go bankrupt leaving unpaid creditors then re-emerging under a different name the next day?
Yes Continue 1 No Go to Section 11 2 Not sure Go to Section 11 3
Q14b Do you believe the Tax Office should be taking action to curb these activities?
Yes 1 No 2 Not sure 3
Page 10 of 13
Q14c To what extent do you strongly agree, agree, disagree or strongly disagree that the Tax Office is doing an effective job at curbing these activities?
Strongly agree 1 Agree 2 Disagree 3 Strongly disagree 4 (Can’t say) 5
SECTION 11: CORPORATE GOVERNANCE
There is a lot of focus these days on good corporate governance, that is the responsibility of business proprietors and directors to fully meet their legal and ethical obligations.
Q15a Are you personally involved in aspects of this business requiring you to have some responsibility for corporate governance?
Yes Continue 1 No Skip to Section 12 2 Not sure Skip to Section 12 3
Q15 To what extent do you strongly agree, agree, disagree or strongly disagree with the following statements about corporate governance?
RANDOMISE ORDER.
Strongly
agree Agree Disagree Strongly disagree
(Don’t know/
Refused)
b. I believe I have a good knowledge of my corporate governance responsibilities 1 2 3 4 5
c. It is part of my corporate governance responsibility to ensure I comply with all aspects of the tax regulations 1 2 3 4 5
d. Corporate governance does not offer any benefits to this business, it is just another administrative burden 1 2 3 4 5
SECTION 12: COMPLIANCE
Q16 Do you strongly agree, agree, disagree or strongly disagree with the following statements about tax compliance?
Strongly
agree Agree Disagree Strongly disagree
(Don’t know/
Refused)
a. The complexity of the tax laws makes it difficult for businesses to comply with their tax obligations 1 2 3 4 5
b. It is the responsibility of owners and directors to ensure their business is fully compliant with tax obligations
1 2 3 4 5
SECTION 13: INTERNATIONAL
Q17a Does this business deal internationally through exporting, importing, running businesses off-shore, having off-shore investments and the like?
Yes Continue 1 No Go to Section 14 2 Not sure Go to Section 14 3
Page 11 of 13
Q17b What type of information from the Tax Office, if any, would be of assistance to this business in addressing the tax aspects of international dealings?
DO NOT READ OUT.
Payments to foreign residents 1 Off-shore borrowings/lending 2 Transfer pricing 3 Currency trading/hedging 4 GST implications 5 Other Please specify 6 None 7
SECTION 14: BUSINESS EXITS
Q18a Do the owners of this business have an exit strategy or succession plan?
Yes Continue 1 No Go to Section 15 2 Not sure Go to Section 15 3
Q18b Does this plan or strategy include taxation obligations and consequences?
Yes 1 No 2 Not sure 3
SECTION 15: TRUSTS
Q19a Does this business operate as a trust? Yes Continue 1 No Go to Section 16 2 Not sure Go to Section 16 3
Q19b Has this business sought advice about trust obligations from specialists in this field?
Yes 1 No 2 Not sure 3
SECTION 16: CAPITAL MANAGEMENT
This section is about using business funds for private purposes such as payments, loans and advances to share holders. This may not apply to this business’s arrangements. Q20a Payments, loans and advances made
to shareholders are normally treated as taxable income. Before today were you aware of this?
Yes Continue 1 No Go to Section 17 2 Not sure Go to Section 17 3
Q20b What steps if any can be taken to avoid a tax implication if drawing on company funds for payments, loans or advances?
DO NOT READ OUT.
Loan agreements 1 (Other specify 2) Don’t know 3 None Go to Section 17 4
Page 12 of 13
Q20c Where might you go for information on how to avoid tax implications when drawing on company funds?
Accountant/Tax Agent 1 Lawyer 2 Professional Body 3 Other specify 4 Nowhere would do it in-house 5 Don’t know 6
SECTION 17: CONCLUSION
Q21 Apart from reducing the level of tax, what is the one thing the Tax Office could do to assist you or this business with tax compliance?
Q22 As a follow up to this study, would you be willing to participate in further research?
Yes 1 No 2
Q23a Would you be interested in joining the Tax Office’s online SME Tax Forum? This forum allows businesses to engage with the tax office to improve the level of service provided to businesses and reduce compliance costs.
DO NOT READ OUT.
Yes - interested 1 Maybe interested, would like more information 2 No, not interested 3 (Don’t know/refused) 4
Q23b Would you like the Tax Office to contact you to provide you with more details about the SME Tax Forum?
Yes 1 No 2
IF CODES 1 OR 2 IN Q23a ASK Q23b
End of interview. Thank you. That is the end of the interview. Once again my name is (… … …) from Sweeney Research. Should you need to contact us again please call us on 1800 35 77 39.
The study has been conducted on behalf of the Australian Taxation Office.
As part of quality control procedures, someone from our project team may wish to re-contact you to ask a couple of questions, validating the information we have collected.
As part of quality control procedures, someone from our project team may re-contact you to validate our data collection processes.
As a market research company, we comply with the requirements of the Privacy Act. The information you have provided will be used only for market research purposes.
Would you like me to give you any more details about how we comply?
Page 13 of 13
If yes then say: As I mentioned we may contact you to verify some of the information you gave us. Once we have completed our validation and processing of information, please be assured that your name and contact details will be removed from your responses to this survey. After that time, we will no longer be able to identify the responses provided by you. However for the period of time that your name and contact details remain with your survey responses, which will be approximately (one month) you can contact us to request access to your information and/or ask us to delete some or all of your information.
Once again, thank you for your time. My name is ….. and I’m calling from Sweeney Research. If you have any queries, you can call the Market Research Society’s Survey Line on 1300 364 830 (for the cost of a local call).
If no: Thank and close.
Date of interview:
Respondent’s name:
Phone number:
Address (if applicable):
“I certify that this is a true, accurate and complete interview, conducted in accordance with the IQCA standards and the MRSA Code of Professional Behaviour (ICC/ESOMAR). I will not disclose to any other person the content of this questionnaire or any other information relating to this project.”
Signed: Interviewer: