Small Business Engagement 2017 · Small business play an important role in the Australian economy,...
160
Small Business Engagement 2017 Australian Tax Office November 2017 Please note that the data contained in this report has been prepared for the specific purpose of addressing the items contained in the project contract between Ipsos/Winangali and the Australian Taxation Office (ATO) . It may not be suitable for other applications. The use of this data for any other purpose should be discussed with the lead author. Ipsos/Winangali accepts no responsibility for unauthorised use of this data by a third party.
Transcript of Small Business Engagement 2017 · Small business play an important role in the Australian economy,...
Small Business Engagement 2017
Australian Tax Office
November 2017
Please note that the data contained in this report has been prepared for the specific purpose of addressing the items
conta ined in the project contract between Ipsos/Winangali and the Australian Taxation Office (ATO). It may not be
sui table for other applications. The use of this data for any other purpose should be discussed with the lead author.
Ipsos/Winangali accepts no responsibility for unauthorised use of this data by a third party.
1
Project Contact: Patrick Watson
Research Manager
Ipsos Public Affairs, Qld
Contact address: Suite 3a
201 Leichardt St,
Spring Hill, 4000 Qld
Office phone: +61 7 3016 7660
Email: [email protected]
Job Name | Version Date 2 ATO
Table of contents
1 EXECUTIVE SUMMARY 6
2 STRATEGIC RECOMMENDATIONS 19
3 BACKGROUND 21
4 METHODOLOGY 22
4.1 Overview of research approach 22
4.2 Qualit ative phase 23
4.2.1 Purpose of qualitative research 23 4.2.2 Focus group sample 24
4.2.3 In depth interview sample 25
4.2.4 Discussion guides 25
4.3 Quantitative phase 26
4.3.1 Small business quantitative research 26
4.3.2 Note on graphs and significance testing 26
4.4 Sample demographics 27
5 GENERAL ATTITUDES AND PERCEPTIONS OF SMALL BUSINESS 30
5.1.1 Overview of current small business landscape 30
6 CURRENT PERCEPTIONS & BEHAVIOURS OF SMALL BUSINESS WITH REGARDS TO TAX
REQUIREMENTS 35
6.1.1 Confidence in management of business tax requirements 35 6.1.2 Small business administration systems 36
6.1.3 Source of information for business administration 37
6.1.4 Triggers for thinking about business tax requirements 39 6.1.5 Have small businesses sought business tax advice? 40
6.1.6 Seeking business advice 41
3
7 ENGAGEMENT WITH TAX SERVICE PROVIDERS 43 7.1.1 Motivations and reasons for using tax professionals 43
7.1.2 How often do small businesses interact with their tax professional? 45
7.1.3 Small business reliance on tax professionals 46 7.1.4 Perceived benefits of using tax professionals 47
7.1.5 When are small businesses engaging with the ATO? 49
7.1.6 Brand associations of tax professionals and the ATO 51
8 DRIVERS OF ENGAGEMENT WITH THE ATO 53
8.1.1 Overall satisfaction with the ATO 53
8.1.2 Driver analysis 55 8.1.3 Attitudinal segmentation 59
9 PERCEPTIONS OF TAX AGENTS REGARDING SMALL BUSINESS ENGAGEMENT 64
9.1.1 Why small businesses go to tax agents 64 9.1.2 Tax agents services for small business 66
9.1.3 Where small businesses go for advice 68
9.1.4 Type of advice tax agents provide to small business 69 9.1.5 Tax agents as a source of business advice 70
9.1.6 Perceived barriers to getting business advice 71
9.1.7 Perceptions of frequency of interactions 72 9.1.8 Tax agents and accounting software 73
9.1.9 Tax agent perceptions of small business attitudes to the ATO 74
10 APPENDIX 75
10.1 Qualit ative and quantitative instruments 75
10.1.1 Small business owner discussion guide 75
10.1.2 Tax professional discussion guide 81 10.1.3 Small business CATI survey 86
10.1.4 Tax professionals CATI survey 111
10.2 Tables 129 10.2.1 Small business survey 129
10.2.2 Tax professionals survey 147
4
Figures Figure 1: Sources of information and advice when commencing business (%).............................................................7
Figure 2: How do small business fulfil their business tax and super requirements (%) ...............................................8
Figure 3 Sources of information or a dvice about business tax requirements (%) .................................................... 10 Figure 4 Reasons tax agents think small business come to them (%) .......................................................................... 11
Figure 5 Perceptions of frequency of interactions (%).................................................................................................... 12
Figure 6 Main type of advice given (%) .............................................................................................................................. 13 Figure 7 Perceptions of non-tax advice small business need most help with (%)...................................................... 14
Figure 8 Overall satisfaction with the ATO (%) ................................................................................................................ 16
Figure 9 Agreement with the four key drivers of engagement (%) ............................................................................. 17 Figure 10 Business length of operation (%) ..................................................................................................................... 30
Figure 11 Perception of current business performance, total (%)................................................................................ 31
Figure 12 Perception of future business performance (%) ............................................................................................ 32 Figure 13 Business administration experience (%) .......................................................................................................... 33
Figure 14 Business life stage (%) ......................................................................................................................................... 34
Figure 15 Confidence in managing business tax requirements (%) .............................................................................. 35 Figure 16 How small businesses describe their business administration systems (%) ............................................ 36
Figure 17 Source of business administration systems advice when commencing business (%) ............................. 38
Figure 18 Small business commenced thinking about tax requirements (%) ............................................................. 39 Figure 19 Sought information or advice about business tax requirements (%) ......................................................... 40
Figure 20 First source of business tax advice/information – split by self-preparers only and tax professional
users (%) .................................................................................................................................................................................. 41 Figure 21 Tax professionals used by small business for business tax requirements (%) .......................................... 42
Figure 22 How does small business fulfil their business tax and super requirements (%) ....................................... 43
Figure 23 Main business tax activities small business use tax professionals for (%)................................................. 44 Figure 24 How often are small business interacting with their tax professional? (%) .............................................. 45
Figure 25 How reliant are small business on tax professional for tax and super advice? (%) ................................. 46
Figure 26 How reliant are small business on tax professionals for business advice? (%)......................................... 47 Figure 27 What benefits do small businesses perceive to using tax professionals? (%)........................................... 48
Figure 28 When are small business interacting with the ATO? (%) .............................................................................. 50
Figure 29 Comparison of attributes, ATO vs tax professionals, total (%) .................................................................... 52 Figure 30 Overall satisfaction with the ATO (%) .............................................................................................................. 53
Figure 31 Overall satisfaction with the ATO, by confidence in managing business tax requirements (%) ........... 54
Figure 32 Agreement with the four key drivers of engagement (%) ........................................................................... 58 Figure 33 Attitudinal segmentation.................................................................................................................................... 59
Figure 34 Reasons tax agents think small business come to them (%) ........................................................................ 65
Figure 35 Main regulatory activities tax agents help small business with (%)............................................................ 66 Figure 36 Tax agents’ perceptions of the non-tax advice small business need most help with (%) ...................... 67
Figure 37 Tax agents’ perceptions of small business preferred sources of advice (%) ............................................. 68
5
Figure 38 Main business advice tax agents give to their small business clients (%).................................................. 69 Figure 39 Tax agents’ perceptions of small businesses openness to paying for business advice (%) .................... 70
Figure 40 Tax agents perceptions of barriers to small business seeking business advice (%) ................................. 71
Figure 41 Perceptions of frequency of interactions (%) ................................................................................................. 72 Figure 42 Tax agents nominated main small business record keeping systems (%) ................................................. 73
Figure 43 Software recommended by tax agents (%) ..................................................................................................... 73
Figure 44 Tax agents’ association with statements of small business clients and the ATO (%) .............................. 74
6
1 Executive summary
Small business play an important role in the Australian economy, with 3.2 million small businesses employing 5.5 million Australians. Small businesses also make up 99 per cent of all Australian businesses and contribute more than $380 billion to the economy.1 Due to the importance of small business– as well as the Australian Taxation Office’s ( ATO’s) own efforts at adopting a more client-centric approach – the ATO requires ongoing research to continue to develop and improve its product and service offerings to small business. The ATO aims to offer small business the help they need with their tax and superannuation in ways and formats they find most convenient.
Winangali and Ipsos were commissioned by the ATO to conduct research to:
track levels of engagement satisfaction between small business and the ATO understand the most effective ways to engage small business using their natural business
systems
explore the relationship and engagement between small businesses and their tax professionals and business advisors
offer the ATO insights into small business engagement strategies and services.
The research was comprised of:
qualitative research
o three (3) focus groups and nineteen (19) in-depth interviews with small businesses
across Australia (including n=2 Aboriginal and Torres Strait Islander (ATSI) owners) o six (6) in-depth interviews with tax professionals
o conducted in February 2017 quantitative research
o n=800 telephone interviews with small businesses (including 32 ATSI businesses)
o n=120 telephone interviews with tax agents who specialise in small business from
across Australia o conducted in May 2017
A summary of the key findings appear below.
1 Australian Government, Backing Small Business - Creating jobs, opportunity and growth, April 2017.
7
1. Small businesses vary when and where they seek advice and information when starting and running their business
Three in four small businesses (75%) report that they first started thinking about their business tax requrements prior to or just following their launch. A number of small businesses (13%) stated they first started thinking about their business tax requirements after their tax professional mentioned it, underlining the high level of influence tax professionals have on small businesses to ensure early engagement
There is significant variation in where small businesses are seeking advice or information on their business administration systems when starting their current business. Around half (51%) are seeking advice or information from one or more formal sources (e.g. tax professionals or business and industry associations). A further 49% are seeking advice or information from one or more informal sources (e.g. previous experience, friends, family, google, online forums, other businesses, business partner or a mentor). While 16% claim they did not seek advice or information from anyone, this is statistically significantly fewer than in 2015 (28%). The current research was unable to identify what may have caused this shift. There is also variation in the number of different sources used, with 62% using a single source only, and 37% using two or more sources.
Accountants were statistically significantly more likely to be the first point of contact for all business advice compared to two years ago (39% 2017; 25% 2015) when starting a small business. The
current research was unable to identify what may have caused this change. Accountants are also
the first source for tax advice (76%). Slightly over one in ten (12%) small businesses also sought
information from business or industry associations, highlighting the opportunity of working with
these third parties to encourage early positive engagement remains strong.
Figure 1: Sources of information and advice when commencing business (%)
QB4 Thinking about when you first started your current business, where did you go for advice or i nformation on these i ssues? by Year. Respondents could choose multiple answers. Base n = 800 (2015)/800 (2017). Chart may not add to 100%
due to multiple responses.
4 ↑
12
39 ↑
41
16 ↓
1 ↓
13
25 ↓
39
28 ↑
ATO
Business/industry associations
Accountant
Informal
Nowhere
2015 2017
8
Confidence in management of business tax requirements
Almost three quarters of small business owners (71%) are confident about their management of
their tax and super requirements. Small business owners who are confident are statistically
significantly more likely to use a tax professional (82%) than to do their own tax (18%). It appears that use of tax professionals offers small businesses a level of peace of mind regarding their business
tax requirements, and is an important driver in their use.
Only 28% of small businesses think they have systems that are efficient and effective, while a further
44% think their systems work, but could be improved, indicating that levels of tax confidence are not
related to the perceived effectiveness of their business systems.
There is a relationship between the length of time spent in business and levels of confidence, as
business owners with more experience were more familiar with their tax and super requirements
and therefore more confident with compliance activities. This highlights the importance of assisting
small businesses in the start-up phase to help them setup their systems well in this critical phase of
their business.
The qualitative research indicates that, while many small businesses intuitively believe their systems
could be improved, they struggle with finding the time/motivation to make these improvements.
This is typically expressed as being ‘busy doing the business, not building or improving the business.’
Figure 2: How do small business fulfil their business tax and super requirements (%)
QB6 How confident are you in managing your business tax requirements? Base n = 800 (2015)/800 (2017).
5
7
4
4
16
18
31
34
42
37
12015
2017
1 Not at all confident 2 3 4 5 Very confident Don't Know
9
2. Tax professionals continue to play an important role in supporting small business and remain the preferred source of tax and super information and advice.
Tax professionals remain the key authority for the majority of small businesses around tax and super affairs, with their ability to provide tailored guidance and information, and around three quarters of
small businesses using them reliant or extremely reliant on them to manage their tax and
super.Those who are not confident in their business tax requirements (11%) are statistically significantly more likely to say they are reliant or extremely reliant on their tax professional (87%).
The qualitative research reflected this with outsourcing the management of tax and super
requirements to a tax professional helping assure small businesses this area is being looked after.
While digital systems can make basic bookkeeping easier, tax professionals are still perceived as
highly valuable and beneficial by small business for their:
tax knowledge and expertise (61%), and ability to help small businesses meet their obligations and do the right thing (51%).
Small business perceptions of the value of tax professionals do not currently appear to encompass
the more general business advice they can provide.
Accountants are the most used commonly used tax professional, with 95% of small businesses who
pay for help with their tax and super accessing them. Additionally, 76% of small businesses cite
accountants as the first place they went to when seeking business tax advice or information, with a further 12% as the second place.
Almost a third (37%) of small businesses who use a tax professional are interacting with them at
least once every three months, with a further third interacting more frequently (12% weekly; 23% monthly). This indicates contact between the majority of small business and their tax professional is
is regular, and not only happening around income tax time.
The preference for seeking advice from tax professionals remains driven by very positive perceptions of them as trusted, reliable, capable, knowledgeable, approachable and honest.
There is a small group of small businesses in 2017 across all business life stages (16%) who stated
they do all of their tax and super themselves. This varies from ATO data, which shows that in 2016-17, 92% of small businesses lodged their income tax returns through a tax agent2. There appears to
be a slight bias in the sample towards self prepares, which should be noted when interpreting some
results. Small businesses who stated they do all of their tax and super themselves were statistically significantly more likely to agree they are the kind of person who will proactively seek out all th e
information they need about tax (52%), and to have contacted the ATO specifically about their tax
return in the last year (25%). Additionally, of those small businesses who said they went to an
2 Commissioner of Taxation Annual Report 2016–17
10
accountant when first seeking out business tax advice (76% of total sample), 11% now report that they do all their own tax.
Figure 3 Sources of information or a dvice about business tax requirements (%)
Among the general small business audience the ATO is still not top of mind for business tax advice
and small businesses are much more inclined to engage with the ATO for transactional reasons only . There remain many small businesses that have not interacted with the ATO in the last year (18%
2017; 22% 2015) or at all (9% 2017; 8% 2015). The level of engagement with tax professionals is
greater than the level of engagement with the ATO on almost all tax-related issues. Of those who are not interacting with the ATO, 91% of them use a professional tax advisor for some or all of their
tax and super affairs. The primary reasons for interaction with the ATO also tends to be transactional
in nature, in particular BAS (31%), annual tax returns (16%) and tax payments (12%).
Most small businesses appear as engaged with their tax professionals and/or the ATO to the extent
that it meets their immediate and obvious needs. The qualitative findings suggest small businesses have somewhat transactional and reactive mindsets in regards to their tax and super affairs – as
opposed to proactive mindsets that could lead to overall tax system improvements.
83 ↑
17 ↓
Ever sought info/advice about business tax
requirements?
Yes
No
1
1
10
80
1
4
11
8
ATO Shopfront
ATO phone
ATO Website
Accountant
2015
First mention Other mention
0
2
11
76
1
9
15
12
ATO Shopfront
ATO phone
ATO Website
Accountant
2017
First mention Other mention
QB8. Have you ever sought advice or looked for information about business tax requirements Base n = 800 (2017). Single Response.
QB9a.When you were looking for this business tax advice or information, where did you go first? Base n= 588 (2015)/663 (2017). Single response. QB9b. Anywhere else? Base n= 588 (2015)/663 (2017). Multiple response. Chart may not add to 100% due to
multiple responses.
11
3. Tax agents see themselves as playing an important role in supporting small business and their preferred source of information and advice.
Tax agents’ experiences and interactions with their small business client base reinforce that small
business owners are time poor and many have neither the time or the inclination to learn the detail
of tax and super, or the desire to manage them. Small businesses perceptions of tax professionals as
experts in their field and trusted advisors that can help them navigate through the world of tax and super effectively is supported by tax professionals themselves.
Reasons tax agents think small business come to them
Figure 4 Reasons tax agents think small business come to them (%)
QC1. Which of the following reasons do you think small business clients come to you for business management or tax and super? Base n = 120. Respondents could choose multiple answers.
1
73
79
83
87
88
93
97
Not sure
Financial trouble
Encountering a tax or super problem
Business change/growth
Starting their business/business registration
Don’t want to do it themselves
Don’t have the time
Don’t know how to do it themselves
12
There is some discrepancy between the perceptions held by tax agents and small businesses about
how frequently they interact, with 95% of tax agents stating they interact with their small business
clients at least quarterly compared to 72% of small businesses who use a tax profess ional saying
they do. The majority of tax agents monitor of their interactions with a small business as part of
their charge for service model, so their perception is likely based on their practice records.
Figure 5 Perceptions of frequency of interactions (%)
QC5a. How regularly would you interact with your typical small business client? Examples of interactions could be email or telephone call – any way in which you communicate with one another. Base n = 120 AND QC1a. Apart from the lead up to tax time how regularly do you think you interact with your [tax professional, SC13]? Base n = 674 (2017)
13
36
46
3 3
0
12
23
37
17
8
3
Around once aweek
Around once amonth
Around quarterly One or two timesa year
Once a year I only talk to themat tax time
What tax professionals say What small businesses say
13
Both small businesses and tax agents perceive that similar regulatory activities define their interactions with each other. For example, 74% of small businesses say they mainly use tax
professionals for annual tax returns, compared to 68% of tax agents stating annual tax returns as the
main activity with clients. Likewise, BAS (40% for small businesses and 57% for tax agents) and GST
management (11% and 23% respectively) feature highly.
Figure 6 Main type of advice given (%)
QC3. Can you please list the kinds of business advice you give? Base n = 120. Multiple responses * Please note the large Other/NA* section is a result of many respondents being unable to separate non-tax related advice from business advice and therefore citing some kind of tax advice in this question.
13
13
25
28
30
36
Record keeping: systems, maintenance
Other (specify)
Financial management
Cash flow
Business planning
Business structure
14
Tax agents also provide broader advice that has implications on small business performance and flow-on effects for regulatory requirements. When asked what kind of non-tax or super advice they
thought their clients most need help with, a quarter of tax agents (25%) stated their small business
clients needed most guidance around cash flow, 23% financial management ,and 17% for both
record keeping and business planning.
Figure 7 Perceptions of non-tax advice small business need most help with (%)
QC6. What kind of non-tax or super advice do you think your small business cl ients most need help with? Base n = 120. Respondents could choose multiple answers.
This was reflected in the qualitative research, where general understanding of incomings and
outgoings, good recordkeeping and better understanding of asset purchases were noted by tax
agents as concerns that brought small business clients to them. The advisory aspect of the service offered by tax agents may not be recognised by small business when it is packaged into regular
interactions.
The majority of tax agents (92%) are providing small business with some business advice, in addition to advice on regulatory matters. Almost half (45%) indicated that it accounts for 11-30% of their overall work with small business. Eight percent are not giving any kind of non-transactional advice. Around three quarters (78%) of tax agents state their small business clients are open to the idea of paying them for business advice, while also acknowledging that cost is the main barrier for why small businesses are not open to getting business advice from tax professionals (48% cite this).
11
17
17
23
25
Staff-related advice
Business planning
Record keeping: systems, maintenance
Financial management
Cash flow
15
The qualitative interviews with small business owners and tax professionals highlight a disconnect
between what tax professionals think small businesses need in regards to business advice and what
small businesses themselves say they need. While not quantitatively captured, small businesses said
their biggest business concerns centred on getting new business and marketing to potential customers.
The qualitative research suggests that small business owners and tax professionals are somewhat at odds about how to create system improvements – small businesses seeing the winning of new business the vehicle that will one day give them time and resources to make systems improvements, whereas tax professionals see the opposite as being true. The qualitative research also found that many tax professionals had difficulty separating non-tax type advice from tax advice, suggesting the industry itself is still maturing from a transactional business role to a more advisory role.
16
4. The four key drivers of engagement with the ATO remain: The ATO gives me the right information to meet my needs The ATO listens to the needs of small business Dealing with the ATO is simple The ATO are on my side
Around two fifths (42%) of small businesses are satisfied with the ATO’s ability to provide advice,
support and information, with around a third ‘neutral’ in their view (37%).
Small business confidence in managing their business tax requirements impacts on their level of
satisfaction with the ATO. Around half of small businesses who report being confident in managing
their business tax requirements (48%) are statistically significantly more satisfied with the ATO’s ability to provide information. In comparison, those who report not being confident in managing
their business tax requirements (38%) are statistically significantly more dissatisfied with the ATO’s
ability to provide advice, support and information. Taken together, these findings highlight that a small business’s level of confidence in management of their business influences their sat isfaction
with the ATO.
Figure 8 Overall satisfaction with the ATO (%)
QG1. Overa l l, how satisfied or dissatisfied are you with the ATO’s ability to provide advice, support and information for your bus iness? Chart does not show ‘don’t know’ and ‘not applicable’. Base n=800 (2015)/800 (2017)
17
The research reconfirmed the four key drivers of engagement with the ATO, which impact significantly on small businesses’ satisfaction with the ATO, and which should remain the focus of
engagement strategies the ATO develops for small business. Maximising agreement with each of
these attributes will in turn maximise overall engagement satisfaction with the ATO. These drivers are:
The ATO gives me the right information to meet my needs
The ATO listens to the needs of small business Dealing with the ATO is simple
The ATO are on my side
Agreement with each of these drivers varies considerably, with the highest agreement evident for the ATO providing the right information to meet my needs (54% agree) , and the lowest agreement
with the ATO listening to the needs of small business (27% agree). While the agreement rates are
low and demonstrate a lack of engagement with the ATO, between one quarter and one third of small business are neutral in their rating for each of the key drivers, indicating considerable potential
to improve engagement by shifting neutral to positive.
Figure 9 Agreement with the four key drivers of engagement (%)
QF2. How much do you agree or disagree with the following statements about the ATO. These results exclude ‘don’t know’
and ‘N/A’ answers. Base n = 800 (2017). * For analysis purposes and to facilitate understanding, this s tatement was
reversed to be positive and consistent with the other s tatements
18
Segmentation analysis identified five different categories of small business, based on their shared attitudes, suggesting that multilayered approaches based on these attitudes could be used to shape effective engagement strategies with small business. The segmentation analysis reinforces that one size fits all strategies are unlikely to be fully effective with the small business audience, and that a variety of ways of engaging with small business needs to be considered for all key messages, covering small business who are proactive in their attitudes, through to those who currently reject assistance and contact with the ATO.
19
2 Strategic recommendations
Based on this research, there are a number of recommendations for consideration:
Small businesses vary when and where they seek advice and information when starting
and running their business
This research has reinforced the key findings and benchmarks established in the initial
engagement research. Government sources are not the first choice for advice and information for
small business when setting up and running their business and strategies are likely to be more
successful when leveraging opportunities with third parties (e.g. accountants, industry associations) and utilising their natural touch points with small business.
Further research is required to fully understand why there was a statistically significant shift to
accountants as the first point of contact for business advice, and what factors may be
contributing to this shift.
Tax professionals want to continue to play an important role in supporting small business and remain the preferred source of tax and super information and advice.
Engagement strategies with small business should continue to consider and incorporate the broad
group of tax professionals when planning the design of ATO products and services and in the development of ATO communication with small business.
The regular and ongoing contact between tax professionals and small business throughout the
financial year is an important touchpoint that could be leveraged to further assist small business.
The four key drivers of engagement with the ATO remain giving the right information to meet needs, listening to needs, simple dealings and being on the side of small business
It is recommended that the ATO continue to develop integrated strategies to improve
performance against each of the four key drivers of engagement to lift small business satisfaction to a rating of 70% or more.
As part of this drive to improve engagement and services to business, it is recommended that the
ATO further considers and incorporates a multilayered approach based on the differences identified in business attitudes, as well as other demographic characteristics.
20
Small businesses benefit from efficient and effective business administration systems
It is important to recognise that better business administration systems are linked to more
positive business performance outlook and confidence for small business. A need to improve their
business administration systems was identified by many small businesses and their tax
professionals.
It is recommended that consideration be given to strategies supporting tax professionals in assisting to set up and drive better behaviour and systems reporting with small businesses.
21
3 Background
The aim of the research was to obtain the views of small business on their current and preferred
engagement experience:
• with the ATO, tax professionals and business advisors, and • to understand the drivers of their engagement with the ATO, tax professionals and
business advisors.
This research:
• Tracks against baselines established in the previous 2015 research and monitors levels of engagement satisfaction
• Explores in more depth the relationship and engagement between small business and tax professionals and business advisors identified in the previous research, and the most effective ways to engage small business using their natural business systems
• Provides actionable information to improve small business engagement strategies and
services.
22
4 Methodology
Overview of research approach A multi-modal research approach was used to explore the issues outlined in the research objectives,
as well as to ensure the tracking component of the study followed best practice methodology. This
comprised a qualitative component, and a quantitative component for benchmarking, segmentation and new insights purposes.
Below is an overview of the research design.
Phase 1
Immersion and inception meeting
Phase 2
Qualitative
recruitment
Qualitative research via 3
focus groups, 19 individual
interviews with small business owners and 6
with tax professionals
Topline qualitative report &
presentation
Phase 3
CATI survey development
Survey to SCH for approval
Quantitative research via CATI
n=800 small businesses, n=120 tax professionals
Topline presentation
Phase 4
Analysis, reporting and presentation
23
Qualitative phase
4.2.1 Purpose of qualitative research The qualitative phase of this research guided the quantitative research phase and explored new
questions of interest.
At the inception meeting, Ipsos recommended altering the qualitative sample as outlined in the
research brief. This alteration reduced the number of focus groups (FGs) and increased the amount
of in-depth interviews (IDI).
• All IDIs and FGs were held between 13-28 February 2017. • IDIs and FGs were held in Brisbane, Toowoomba, Melbourne, Sydney and rural Victoria. • Small business owners were recruited by Q&A recruitment and grouped according to the
phase of business the small business best identified with (start-up, running, change)3. Participants in the small business FGs and IDIs were offered an incentive for their time ($150 for FGs and $120 for IDIs).
• As a pre-requisite for participation in qualitative research, all small businesses also had less than $2 million business turnover per annum, the definition of small business at the time of the research.
• Tax professionals were recruited from a list of tax agents supplied by the ATO. Tax professional participants were offered a $150 incentive by Ipsos for their participation in an IDI of approximately 50-60 minutes.
3 Definitions used to define these categories were:
Start-up: New businesses, whose focus is on setting up and establishing their business Running: Bus inesses who are established, and focussed on growing further
Changing: Mature businesses considering making changes or exiting/winding up.
24
4.2.2 Focus group sample
Location Small business
phase Participants
Sydney Changing n=6 small business owners (including n=2 Aboriginal and Torres Strait
Islander (ATSI) owners)
Brisbane Start-up n=6 small business owners
Brisbane Running n=6 small business owners
Total 18
25
4.2.3 In depth interview sample
Brisbane Toowoomba Sydney Melbourne Regional Vic Total
Small business
owner or
Financial
controller
3 x start-up
2 x running
1 x ATSI
3 x changing
1 x start-up
1 x ATSI
2x changing
2x running
2x start-up
2 x changing 19
Tax professional 3 x tax agent
3 x tax agent
6
Total 25
4.2.4 Discussion guides The discussion guides were designed by Winangali and Ipsos, and provided to the ATO for review, comment and approval prior to use. The discussion guides were designed as memory aids for the facilitators in order to ensure key topics were covered. Discussion with participants in the qualitative phase was flexible to enable participant-led issues and themes to be raised and discussed. Please refer to Appendices 10.1.1 and 10.1.2 for the discussion guides.
26
Quantitative phase
4.3.1 Small business quantitative research The quantitative measurement phase tracked small businesses perceptions against specific
questions from the previous research, as well as quantitating new issues identified in the 2017
qualitative phase.
Computer assisted telephone interview methodology was used to replicate the original research.
N=8 cognitive tests were undertaken to ensure the questionnaire was understood clearly and
consistently across different small businesses. Review and amendments of questionnaire content
and wording was conducted in response to the cognitive test findings. The questionnaires were
reviewed and approved by the Australian Government Statistical Clearing House (SCH), approval
number 02545-01.
Computer assisted telephone interviews were conducted with n = 800 small businesses, with quotas
set on geographic location. Interviews were conducted by i-View and the sample was sourced from
Dunn and Bradstreet. On average, the time taken to complete the small business survey was 16.75
minutes (field dates 1-12 May, 2017). The average time to complete the tax practitioner’s survey
was 14.02 minutes (field dates 3-10 May, 2017).
Four percent (n = 32) of the small business participants identified as being 50% or more ATSI owned.
Analysis of the ATSI small business sample responses showed no significant differences with the
other small businesses surveyed in this research.
4.3.2 Note on graphs and significance testing Unless otherwise indicated, any statistical differences are indicated in the tables and graphs by arrows. An upward arrow (↑) indicates a significantly higher result and a downward arrow (↓) a significantly lower result. In some tables, significant results are also color-coded, with significantly higher results shown in blue and significantly lower results in red. The significance tests in this report are highlighted as significant if the corrected p-value is less than
or equal to the specified overall significance level of p<=0.05. Due to the rounding of decimals, some
tables and graphs display percentages that do not equal exactly to 100. As survey research collects
subjective data, behaviours discussed in this report are stated behaviours by the participants and
not objective data on actual behaviour.
27
Sample demographics Total
2015 (%) 2017 (%)
Business location
Sydney 8 8
NSW - other 11 11
Melbourne 9 12
VIC - other 10 7
Brisbane 4 4
QLD - other 8 9
Perth 8 7
WA - other 5 6
Adelaide 8 5
SA - other 4 7
TAS 9 9
NT 9 9
ACT 6 6
Annual turnover
Less than $75,000 19 28
$75,000 - $2 million 81 73
Structure
Sole trader 17 29
Partnership 13 14
Company 56 47
Trust 16 15
28
Number of employees
0 17 26
1-5 employees 65 57
6-10 employees 13 13
11-20 employees 4 4
More than 20 employees 1 1
Registered for GST
Yes 96 90
No 4 9
Don’t know 0 1
Business life stage
My business is in the early stages (start-up phase) 4 7
The business is established 61 65
The business is about to go through major changes (e.g. expanding, downsizing,
changing direction) 14 13
I am considering exiting the business (e.g. sel ling, closing, transferring
ownership) 22 15
Don’t know 0 1
29
Industry
Agriculture, Forestry and Fishing 5 5
Mining 2 2
Manufacturing 10 10
Electricity, Gas, Water and Waste Services 2 2
Construction 8 8
Wholesale Trade 2 2
Retail Trade 25 25
Accommodation and Food Services 5 5
Transport, Postal and Warehousing 3 3
Information Media and Telecommunications 3 3
Financial and Insurance Services 5 5
Rental, Hiring and Real Estate Services 3 3
Professional, Scientific and Technical Services 9 9
Administrative and Support Services 1 1
Public Administration and Safety 0 0
Education and Training 3 3
Health Care and Social Assistance 4 4
Arts and Recreation Services 7 7
Other Services 6 1
Other (please specify) 0 2
30
5 General attitudes and perceptions of small business
5.1.1 Overview of current small business landscape
Business profile Overall, the time of operation of the small businesses surveyed is similar to the previous research,
although there was a statistically significant decrease in the number of businesses in operation for
21 or more years (37% 2017; 56% 2015). There was a higher proportion of small businesses in the
first 5 years of running their current business (17% 2017; 8% 2015) compared to the previous
research. The majority of the small businesses surveyed considered themselves established businesses (65%). As such, the results of this research may partly reflect the behaviour of successful
businesses, who have engaged with appropriate resources at the appropriate times.
Figure 10 Business length of operation (%)
SC9. How long has your main business been in operation? Base n = 800(2015)/800(2017)
1
2
2 ↓
5 ↑
5 ↓
10 ↑
7 ↓
16 ↑
29
30
56 ↑
37 ↓
2015
2017
Less than one year 1 - 2 years 3 - 5 years 6 - 10 years 11 - 20 years 21 years +
31
Business sentiment
Business sentiment among the small businesses surveyed was mixed, with half either positive or
extremely positive (50%), and one-third neutral (32%). However, statistically significantly more
small businesses reported being extremely positive with their current performance in the current research (19% in 2017; 14% in 2015).
Figure 11 Perception of current business performance, total (%)
QB1. Us ing a scale of 1 to 5, where 1 i s extremely negative and 5 is extremely positive, how positive or negative would you say you are currently feeling about how your business is performing at the moment? Base n =
800(2015)/800(2017)
32
Small business perceptions of their future performance was generally confident, with around half positive or extremely positive (56%), and one-third neutral (29%). In the current research,
statistically significantly more small businesses reported being extremely positive about their future
performance (24% in 2017; 17% in 2015).
Figure 12 Perception of future business performance (%)
QB2. And us ing the same scale of one to five, how are you feeling about the future of your business, in say
12 months from now? Base n = 800(2015)/800(2017)
33
Established small businesses are statistically significantly more positive about both their current performance (71%) and their future performance (70%). Small businesses who are considering
exiting their business (15% of total sample) however, are statistically significantly more likely to be
negative about both their current business performance (38%) and future performance (45%).
Furthermore, those small businesses who are extremely negative about their current performance
(7% of total sample), are statistically significantly more likely to have a turnover of less than $75,000 (47%).
Of the small business who stated they are positive about their future, a statistically significant
number (16%) are also about to go through a major change. While the survey did not explore the
nature of planned changes (e.g. taking on more staff due to growth, reducing staff due to a
restructure), the qualitative research suggests that small businesses may feel positive about restructures because they have made the decision and have a clear path forward.
Figure 13 Business administration experience (%)
2
2
4
3
9
10
11 ↓
17 ↑
29
34
45 ↑
34 ↓
2015
2017
Less than one year 1 - 2 years 3 - 5 years
6 - 10 years 11 - 20 years 21 years +
SC1. How long have you been involved in managing the business administration of this (or other) businesses? Base n = 800(2015)/800(2017)
34
As in the previous research, the self-selected business stage did not directly relate with the length of time the business has been in operation. Around half of businesses that had been operating 1-2
years were statistically significantly to see themselves in the start-up phase (49%) and one fifth of
those operating 3-5 years (22%). However, 21% of businesses in operation for less than one year
considered themselves as established, as did 30% of businesses that had been operating 1-2 years. It
appears that business stage perceptions may have less to do with length of time in business, compared to expected business performance and the turnover a small business owner believes
necessary to be ‘established’.
Figure 14 Business life stage (%)
SC8. Which of the following best represents the s tage your main business is currently in? Base n = 800(2015)/800(2017)
35
6 Current perceptions & behaviours of small business with regards to tax requirements
6.1.1 Confidence in management of business tax requirements Almost three quarters of surveyed small business owners (71%) feel confident in managing their business tax requirements. The levels of business management confidence have not changed
significantly since 2015.
The length of time in business however, influences confidence in managing business tax
requirements, with businesses in operation for less than one year (2% of total sample) statistically
significantly less confident (29%). Established small businesses that have been operating for over 11 years (68% of total sample) are statistically significantly more likely to be confident with managing
their business tax requirements (76%). This finding reflects some of the qualitative discussions
where business owners with more experience were more familiar with their tax and super
requirements and therefore more confident with compliance activities.
Among small businesses who pay a tax professional to do all their business‘s tax and super requirements, 58% report being confident in managing their business tax requirements. In contrast,
82% of small businesses who do all their tax and super themselves say they are confident. Among
small business owners who report being very confident in their business tax requirements (37% of
sample), statistically significantly more are likely to have qualifications as a Chartered Accountant or
as a Certified Practicing Accountant (9%). This group is significantly more likely to come from a Professional, Scientific and/or Technical Service industry. Significantly, most small businesses who
are both confident and who do their own tax (8% of total sample) close to half (45%) have had on
the job training as administrators. Other confident small business owners who do their own tax are
statistically significantly more likely to have done short courses at TAFE or other private institutions
(29%), or done an industry course or studied a university degree or diploma (27% both).
Figure 15 Confidence in managing business tax requirements (%)
Small business administration systems
QB6. Using a scale of 1 to 5, where 1 is not at all confident and 5 is very confident, how confident are you in managing your business tax requirements? Base n = 800(2015)/800 (2017)
36
6.1.2 Small business administration systems Almost three quarters of the small businesses surveyed (72%) believe they have business systems
that work for them. Just over a quarter (28%) of the small businesses surveyed thought they had
systems that are efficient and effective. However, 44% acknowledged their business administrative
systems could probably be better. Sixteen per cent stated their systems are basic and that their approach to dealing with administration tends to be reactive in nature. Small businesses with basic
systems are statistically significantly more likely to have an average turnover less than $75,000
(22%).
Among small businesses who are confident with their business tax requirements (71% of total
sample), 34% stated their systems were efficient and effective. This drops to 14% among those who are not at all confident with their business tax requirements (11% of total sample).
When small business owners’ administration systems are compared to their business performance
outlook, those who were extremely positive about their current business performance (19% of total
sample), were significantly more likely to also believe they have systems that are efficient and
effective (38%). In contrast, those who are negative about their current business performance (7% of the total sample), were statistically significantly more likely to have a few basic systems but mostly
deal with things as they come up (26%).
These findings were also apparent in the qualitative research, with many small businesses expressing
they are time poor and tend to focus their time, energy and resources on the day-to-day running of
their businesses, as opposed to more strategic planning or system improvements. Those business owners, who seemed to be positive, efficient and happy with their performance, also indicated they
had strong systems in place. Often, they also remarked they had regular meetings with their tax
professionals and actively sought out system improvements, rather than have them suggested to
them.
Figure 16 How small businesses describe their business administration systems (%)
QB3. In your opinion, which of the following statements would you say best represents your business administration
systems: Base: n=800 (2017)
28
44
16
12
I have systems that are efficient and
effective
I have systems that work for me, but
they could probably be better
I have a few basic systems, but
mostly deal with things as they…
I work with systems that were
developed by someone else
37
6.1.3 Source of information for business administration
Tax professionals (and accountants in particular) remain a major influence on small business,
regardless of their business life stage. Accountants are the first source for all business advice when
first starting out (39%), and the first source for tax advice (76%). Forty percent of the small businesses surveyed stated they are extremely reliant on their tax professional to manage their tax
and super affairs
Accountants have increased significantly as the first point of contact for small business (39% 2017;
25% 2015) when starting their current business. Significantly, more small businesses are also taking
action to get advice, with only 16% of small business owners saying they did not go anywhere for advice when first starting in 2017, compared to 28% in 2015. With the data available, it is difficult to
indicate why this is the case.
Younger businesses are more digitally engaged. Around one fifth (19%) of small businesses that have
been operating 1-2 years (3% of total sample), and 16% of businesses that have been operating 3-5
years (10% of total sample), were significantly more likely to state their first source of business/administration advice was the internet or a google search. The internet and google
searches decreased as the first source of advice the longer a business has been in operation. While it
was significant that only 2% of businesses operating for over 21 years’ recall using the internet as a
first source of business information, this is almost certainly due to the limited information available
online at the time.
38
Figure 17 Source of business administration systems advice when commencing business (%)
QB4 Thinking about when you first started your current business, where did you go for advice or information on these
i ssues (business administration systems)? PROBE: Anywhere else? Respondents could choose multiple answers. Base n = 800 (2015)/800 (2017). Note: Superannuation company, BAS agent, Fair Work Australia and Department of Fair Trading
missing from graph as received 0%.
1
1
1
1
1
2 ↓
2
2
2 ↑
2
3
4 ↑
4
6
7 ↑
8
12
13
15
16 ↓
39 ↑
0
0
0
1
4 ↑
1
3
0 ↓
3
5
1 ↓
3
4
2 ↓
10
13
12
17
28 ↑
25 ↓
Existing clients
Small Business Commissioner
Books, guides, leaflets
Tax agent
Online business/industry forums
Bank/Financial Planner
Business.gov.au (in Department of Industry, Innovation and…
State government business websites
Bookkeeper
Mentor
Other (please specify)
Australian Taxation Office (ATO)
Business partner
Course, training program/seminar
Internet/Google search
Other businesses
Business/industry associations
Family, friends
Previous experience/knowledge
Nowhere
Accountant
2015 2017
39
6.1.4 Triggers for thinking about business tax requirements Three in four small businesses (75%) report that they first started thinking about their tax
requirements prior or just following their business launch. A further 13% of businesses indicated
they first started thinking about their tax requirements after their tax professional mentioned it,
indicating the high level of influence tax professionals have on small businesses. There were no significant differences with the previous research.
Figure 18 Small business commenced thinking about tax requirements (%)
QB5. When did you first start thinking about your business tax requirements? Would i t be… Base n = 800 (2017).
42
33
13
4
3
2
1
1
1
1
0
Before you started the business
As soon as the business started operating
When your accountant/tax professional broughtit to your attention
When it was time to lodge your first business taxreturn
Other specify
Can’t remember
Reached GST threshold ($75k)
When you received/wrote your first invoice
When I got a compliance warning
When a friend/family brought it up
I havent started thinking about business taxrequirements yet
40
6.1.5 Have small businesses sought business tax advice? The majority of small businesses say they have sought advice or looked for information about
business tax requirements (83%). This is a statistically significant increase from the 2015 research,
where 74% of small businesses had sought advice of this kind. Of concern is the business who
consider themselves to be in the start-up phase (7% of total sample), of which one tenth (10%) had not yet looked for information about their business tax requirements, and a further 10% of start-up
businesses had not sought advice or looked for information about business tax requirements, but
indicated they might.
When it comes to where small businesses are getting this advice, accountants remain the major
influencer in this space, with 76% of small businesses citing them as their first source of advice. The ATO website is the second most cited source of business tax advice, with 11% of small businesses
going there for this kind of information.
Figure 19 Sought information or advice about business tax requirements (%)
26↑
14↓
0↓
3↑
74↑
83↑
No, not at all Not yet, but might Yes
2015
2017
QB8. Have you ever sought advice or looked for information about business tax requirements? Base n = 800 (2015) / 800 (2017).
41
6.1.6 Seeking business advice The majority of small businesses (83%) stated they have sought advice or looked for information
about their business tax requirements at some stage, an increase from 74% in the previous research.
The number of small businesses stating they have never sought advice or looked for information has
decreased (14% 2017; 26% 2015).
Small businesses that currently do all their own tax and super are statistically significantly less likely
than those who use tax professionals to go to an accountant first, although somewhat over half
(57%) still had. Small businesses who currently do all their own tax and super are statistically
significantly more likely than those who use tax professionals to go to the ATO website (19% vs
10%), call the ATO (5% vs 1%), or go to other government departments (4% vs 1%).
Figure 20 First source of business tax advice/information – split by self-preparers only and tax
professional users (%)
QB8. Have you ever sought advice or looked for information about business tax requirements Base n = 800 (2017). Single Response. QB9a.
When you were looking for this business tax advice or information, where did you go first? Single response. n=566 Professional tax user.
n=97 DIY Tax user. (2017) QB9b. Anywhere else? Multiple response. n=566 Professional tax user. n=97 DIY Tax user. (2017) Only top 5 options chosen shown in both responses.
143
83
0
Ever sought info/advice
about business tax requirements?
No, not at all
Not yet, but might
Yes
Can’t remember5
3
1
19
57
11
4
1
16
14
ATO Phone
Google search
Bookkeeper
ATO Website
Accountant
DIY Tax user (First mention)
DIY Tax user (Other mention)Self-preparers (Other
mention)
Self-preparers (First mention)
1
2
2
10
79
8
4
3
14
12
ATO Phone
Google search
Bookkeeper
ATO Website
Accountant
Professional Tax user (First mention)
Professional Tax user (Other mention)
42
Of the small business owners who use a tax professional (85% of total sample), 95% stated they use an accountant, 30% a bookkeeper, 15% a tax agent, 8% a BAS agent and 7% a business advisor.
Those small businesses that pay a professional to fulfil all their business tax and super requirements
(23% of total sample) are significantly more likely to use bookkeepers (47%).
Figure 21 Tax professionals used by small business for business tax requirements (%)
SC13. You mentioned earlier that you pay for professional help with your tax and super. Which of the following professionals do you use? Multiple responses allowed. Base n=674 (2017). Question only asked of those who use tax
professionals.
2
7
8
15
30
95
Other (specify)
Business Advisor
BAS agents
Tax agents
Bookkeeper
Accountant
43
7 Engagement with tax service providers
7.1.1 Motivations and reasons for using tax professionals The majority of the small businesses surveyed (85%) pay a professional to do some or all of their tax. This varies from ATO data, which shows that in 2016-17, 92% of small businesses lodged their income tax returns through a tax agent.4 There appears to be a slight bias in the sample towards self-preparers, which should be noted when interpreting some results.
Figure 22 How does small business fulfil their business tax and super requirements (%)
SC11. Which of the following would best describe how you go about fulfilling your business’s tax and super requirements?
Base n = 800 (2017)
Small businesses value tax professionals’ specialist knowledge and expertise, with 61% citing this as the core benefit of using a tax professional. Consistent with the previous research, the two main business tax activities small businesses use tax professionals for is their annual tax return (74%) and business activity statement (40%). In 2017, statistically significantly more small businesses were talking to their tax professionals about super than in 2015 (13% vs 4%), which may be due to changes to the superannuation system that were to underway at the time of the research. The qualitative research supports the quantitative findings. Small businesses discussed trying to find a balance between paying their fair share of tax while making tax savings. By hiring a tax professional to help them navigate the tax system, they feel assured that they pay tax and super appropriately and remain compliant.
4 Commissioner of Taxation Annual Report 2016–17
16
62
23
I do it all myself
I do some of it myself, but alsopay a professional to help me
I pay a professional to do all ofit
44
Figure 23 Main business tax activities small business use tax professionals for (%)
QC1. What is the main business tax activity you used them for within the last year 2017
Annual tax return 74
Business Activity Statement (BAS) related 40
General advice/information 14
Superannuation 13
Tax preparation 12
GST management 11
Tax advice 11
Record keeping: systems, maintenance 10
Tax payments 10
Other (please specify) 6
Business structure/Business Planning 6
Income and deductions/depreciation information/advice/management 6
Pay as you go (PAYG) 5
Advising on tax regulations, legal changes, updates 5
Don’t know 1
TOTAL 674
QC1. What i s the main business tax activity you used them for within the last year? Base n = 800 (2015)/674 (2017).
Multiple response. Question only asked of those who use tax professionals in 2017. Note: The base va lues available for 2015 are those reported.
45
7.1.2 How often do small businesses interact with their tax professional?
Almost three quarters (72%) of the small businesses surveyed interact with their tax professional at least every quarter, not including the lead up to tax time, with around one third (35%) interacting
weekly or monthly. Those who pay a professional to fulfil all their business and tax requirements
(23% of total sample) are significantly more likely to interact once a week (23%).
Small businesses who interact with their tax professional only once or twice a year (8% of those who
use a tax professional), are statistically significantly more likely to have an annual turnover of less than $75k (54%), to be a sole trader (52%), to be considering exiting their business (31%) or to do
their tax partly themselves (89%).
Small businesses that use bookkeepers have statistically significantly more frequent interactions
than those using other tax professionals (28% weekly, 33% monthly). This likely reflects the nature of
typical bookkeeping services (e.g. payroll processing, bank reconciliations and accounts payable).
The qualitative research indicated that the nature of most small business-tax professional
interactions are generally on an as-required basis, with advice and support only accessed ‘when
necessary or things come up’. Few small businesses mentioned having the time, resources or
inclination to be proactive about tax and super system improvements in a fully considered way.
Figure 24 How often are small business interacting with their tax professional? (%)
QC1a. Apart from the lead up to tax time how regularly do you think you interact with your [tax professional, SC13]? Base n = 674 (2017. Question only asked of those who use tax professionals.
) data only).
12
23
37
17
8
3
1
Around once a week
Around once a month
Around Quarterly
One or two times a year
Once a year
I only talk to him/her at tax time
Unsure
4 It should be noted that the survey question reads: ‘…to what extent do you rely on your tax professional…’ – an emphasis
being placed on ‘your’. It could be interesting to further test whether this use of a possessive pronoun has influenced the findings and what impact the use of ‘a tax professional’ might have on the data. Should this question be included in future
research, we recommend further cognitive tests prior to launch to see whether this impacts responses.
xx/08/2017 46 ATO
7.1.3 Small business reliance on tax professionals Around three quarters (71%) of the small businesses surveyed who use tax professionals considered
themselves reliant or extremely reliant on their tax professional to manage their tax and super
affairs. Those small businesses that pay a professional to look after all of their business’s tax and super requirements (23% of total sample) were statistically significantly more likely to be extremely
reliant on their tax professional for business advice (65%).
The extent of reliance of small business on tax professionals for tax and super advice does not seem
to extend to more general business advice for many small business, with around two thirds of the
small businesses who use tax professionals (63%) rating themselves as not reliant at all to neutrally reliant on their tax professional for business advice. The remaining third (37%) consider themselves
reliant or extremely reliant.
The qualitative research suggested that for many small businesses, getting professional help for tax
and super is normal and habitual. Simply put, it is what you do if you are in business. The main
benefits tax professionals deliver is helping owners navigate an often confusing and complicated tax world, as well as saving the small business time and effort. The qualitative findings also suggest that
tax professionals can become so integral to a small business that, even if they are unhappy with
their current tax professional, they are reluctant to find a new one because of their current tax
professional’s familiarity with their business and the extra effort that would be required to change
their tax professional. That small business are less likely to consider tax professionals for more general business advice was also reflected in the qualitative findings. As one small business owner
stated, “They’re the bean counters. Why would I go to them for business advi ce?”
Figure 25 How reliant are small business on tax professional for tax and super advice? (%)4
Not rel iant at all 2 Neither agree nor disagree 4 Extremely reliant
QC3. Us ing a scale of 1-5, where 1 i s not reliant at all and 5 i s extremely reliant, to what extent do you think you rely on your tax professional to manage your tax and super affairs? Base n = 674 (2017) Question only asked of those who use tax professionals.
2 7 19 31 40
xx/08/2017 47 ATO
Figure 26 How reliant are small business on tax professionals for business advice? (%)
Not rel iant at all 2 Neither agree nor disagree 4 Extremely reliant
7.1.4 Perceived benefits of using tax professionals Small businesses are generally keen to do the right thing, and are willing to pay for appropriate assistance to help them deal with their tax and super requirements. The small businesses surveyed who use a tax professional (78% of total sample) nominated the key benefits of tax professional use as:
accessing tax knowledge and expertise (61%) helping to meet their obligations (26%)
helping them to do the right thing (25%)
saving them time (15%) tax professionals’ familiarity with ATO systems (13%) and
not having to do it themselves (12%). These benefits were supported by the qualitative research. Small businesses in the current research were statistically significantly less likely to nominate
the benefits of using tax professionals as their tax knowledge and expertise (61% 2017; 72%
2015) or their familiarity with the ATO (13% 2017; 19% 2015). This was likely due to a number of
additional options provided in 2017, which rated highly. Of these, 26% nominated the benefits
of using tax professionals as keeping them out of trouble by meeting their obligations and 25% as helping them do the right thing.
The proportion of small business who say that their tax professionals saved them money
remained very low (3% 2017; 4% 2015). Small businesses in operation for less than 5 years
(17% of total sample), and particularly those in operation for less than 1 year (2% of total
sample), are statistically significantly more likely to believe their tax professional has the right tax knowledge and expertise (67% and 61% respectively).
QC4. Us ing the same scale of 1-5, where 1 i s not reliant at a ll and 5 i s extremely reliant, to what extent do you think you rely on your [tax professional, SC13] to give you other types of business advice? Base n =674 (2017). Question only asked of those who use tax professionals.
1917 27 22 15
48
Figure 27 What benefits do small businesses perceive to using tax professionals? (%)
QC2 What benefits are there to using your tax professional?
2015 2017
Have the tax knowledge/expertise 72 ↑ 61 ↓
Keeps me out of trouble/meets my obligations* n/a 26
Doing the right thing* n/a 25
Saves me time 13 15
Familiarity with the ATO and the way they work 19 ↑ 13 ↓
Not having to do it myself 14 12
Trust/confidence 6 ↓ 10 ↑
Knows my business 3 ↓ 9 ↑
Personalised service 1 ↓ 5 ↑
Financial benefits or saves me money 4 3
Reliable 5 ↑ 3 ↓
Other (please specify) 4 3
On my side/work for me 2 2
Easy to get hold of/access 2 2
Don’t know 3 2
Cost effective 4 ↑ 2 ↓
Habit 0 0
Total 755 674** QC2 What benefits are there to using your [Tax professional, SC13]? Anything else? Note: by Year Total sample. Base
n = 755 (2015), 674 (2017). * indicates new code frame in 2017. ** Indicates question filtered to respondents who
use tax professionals. Multiple responses allowed.
49
7.1.5 When are small businesses engaging with the ATO?
Small businesses are much more inclined to engage with the ATO for transactional purposes.
Consistent with the 2015 research, business activity statements (31%), annual tax returns (16%)
and tax payments (12%) were the most commonly cited reasons for interacting with the ATO. There was a statistically significant increase in the number of interactions for annual tax return
(16% 2017; 10% 2015) and superannuation (5% 2017; 1% 2015).
Around a quarter of the small businesses surveyed (27%) had not contacted the ATO in the last
year, or at all. Small businesses are more likely to engage with their tax professionals for tax
advice, with 11% of small businesses who use a tax professional contacting them for tax advice, compared to 2% of all small business surveyed contacting the ATO for tax advice.
Small businesses about to go through major changes (13% of total sample) were statistically
significantly more likely to contact the ATO for payment arrangements for debt (19%). Small
businesses that look after their own business tax and super requirements (16% of total sample)
were statistically significantly more likely to have contacted the ATO to enquire about their annual tax returns (25%).
50
Figure 28 When are small business interacting with the ATO? (%)
QD1. Within the last year, what are the reasons you would generally interact with the ATO for? Anything else?
Respondents could choose multiple answers. Base n=800 (2015)/800 (2017).
26
0 ↓
1
1
2
2
2
3
3
4
4
5 ↑
5 ↑
5
7
8
9
12
16 ↑
31
30
2 ↑
2
1
2
1
1
2
3
4
2
0 ↓
1 ↓
8
9
7
6
14
10 ↓
26
I have not interacted with the ATO in the last year/at all
Record keeping: systems, maintenance
Tax preparation
Business structure
Income and deductions information/advice/management
When didnt understand something
Tax advice
Error in tax return
Arranging payment extensions
Advising on/questions about regulations, legal changes, updates
Needing to change/update details
Other (please specify)
Superannuation
Pay as you go (PAYG)
GST management
General advice/information
Payment arrangements (for debt)
Tax payments
Annual tax returns
BAS related
2015 2017
51
7.1.6 Brand associations of tax professionals and the ATO
Tax professionals have significantly stronger associations with all of the ATO’s desired brand
attributes than the ATO by small business. Over nine in ten small businesses associate tax
professionals with being trusted, reliable, capable, knowledgeable, approachable and honest. The strongest associations with the ATO (from about seven out of ten small businesses) were
trusted, reliable, capable, knowledgeable, consistent and honest.
The largest differential between tax professionals and the ATO were:
being supportive (85% association for tax professionals, versus 52% for the ATO)
being approachable (91% association for tax professionals, versus 59% for the ATO) being accessible (89% association for tax professionals, versus 58% for the ATO)
This suggests these three attributes in particular need to be a focus for improved engagement
with the ATO. Being approachable and accessible also had the largest differential in the previous research. Being supportive was a new option added in 2017.
Overall, the differential between tax professionals and the ATO was less than the previous
research (an average differential of 23.6% in 2017; 30% in 2015). This was largely due to
improvements in the ATO’s desired attribute scores, indicating an improvement in perceptions
of the ATO by small business.
Statistically significant increases occurred between 2015 and 2017 for the option ‘both’ for most
of the attributes (trusted, reliable, efficient, capable, knowledgeable, cost effective and
consistent). This suggests an improved perception of the ATO overall be cause, while
respondents are not selecting the ATO solely on many attributes, they are combining them with tax professionals by selecting ‘both’ – indicating an improved perception in these areas.
52
Figure 29 Comparison of attributes, ATO vs tax professionals, total (%)
65
85
90
89
91
87
93
90
92
86
91
47
52
71↑
58↑
59
69↑
69↑
70↑
70↑
58↑
76
26
11
7
8
6
8
4
6
4
10
5
Cost effective
Supportive
Trusted
Accessible
Approachable
Consistent
Capable
Reliable
Knowledgeable
Efficient
Honest
2017
Tax professional ATO Neither/Not sure
61
89
91
93
85
92
88
91
83
42
60↓
52↓
56
59↓
61↓
59↓
60↓
52↓
27
8
6
4
10
5
7
5
12
Cost effective
Supportive
Trusted
Accessible
Approachable
Consistent
Capable
Reliable
Knowledgeable
Efficient
Honest
2015
Tax professional ATO Neither/Not sure
QE1. Tel l me i f that word best represents the ATO and/or a tax professional or neither. Figures for tax professionals and the ATO include ‘both’ figure as part of their overall attribute score. Base n= 800 (2015)/800 (2017). Please note: Two additional attributes
added in 2017. Significance shown is at the combined level for ‘ATO’ and ‘Tax Professional’ and includes ‘both’
53
8 Drivers of engagement with the ATO
8.1.1 Overall satisfaction with the ATO Slightly more small businesses were satisfied with the ATO’s ability to provide advice, support and information for their business in 2017 when compared to the previous research (42% 2017;
37% 2015). However, this was not a significant difference. The same overall proportion were
neutral (37% 2017, 37% 2015), and dissatisfied (18% 2017; 19% 2015).
Figure 30 Overall satisfaction with the ATO (%)
QG1. Overa l l, how satisfied or dissatisfied are you with the ATO’s ability to provide advice, support and information
for your bus iness? Chart does not show ‘don’t know’ and ‘not applicable’. Base n=800 (2015)/800 (2017)
54
Small business confidence in managing their business tax requirements impacts on their level of satisfaction, with around half (47%) those who report being confident in this significantly more
satisfied with the ATO’s ability to provide information. Those small businesses who report not
being confident in managing their business tax requirements were statistically significantly more
likely to be very dissatisfied with the ATO’s ability to provide advice support and information
(20%). There is no significant difference between small businesses who do their own tax or use tax professionals and their overall satisfaction with the ATO’s abililty to provide advice, support
and information.
Figure 31 Overall satisfaction with the ATO, by confidence in managing business tax requirements (%)
QB6. How confident are you in managing your business tax requirements? And QG1. Overall, how satisfied or dissatisfied are you with the ATO's ability to provide advice, support and information for your business? Base n = 769
(2017). Chart does not show ‘don’t know’ and ’not applicable’ responses.
17
19↑
8↓
20↑
4
5
31
46 ↑
35
26
21 ↓
33 ↑
6
4 ↓
14 ↑
Not confident with tax requirements
Neutral
Confident with tax requirements
55
8.1.2 Driver analysis Methodology for the driver analysis:
Based on the qualitative research, a range of key attributes for the ATO was measured, to help
explain small businesses’ engagement with the organisation.
Multivariate statistical analysis (Shapley’s importance score) was undertaken to explore the relationship between the measured attributes and overall satisfaction. This enabled
identification of the relative impact, or importance, of each attribute on overall satisfaction. By
examining the strength of agreement with these attributes, in combination with their relative
impact on overall satisfaction, we can then categorise attributes into the fol lowing groups.
Performance can be defined as the level of agreement with key performance statements.
1. High importance, high performance (top right box) – these attributes have a strong impact on
overall satisfaction, and are performing well. Generally, they need to be maintained at current
levels by the ATO, and used as core engagement/communication tools.
2. High importance, low performance (top left box) – these attributes also have a strong impact
on overall satisfaction, but are not performing well. They are a focus for improvement to increase positive engagement.
3. Low importance, high performance (bottom right box) – these attributes while performing
well, do not impact strongly on overall satisfaction. As such, focusing too much on these
attributes to strengthen engagement will have little impact. They are the “nice to have”
components of the engagement strategy.
4. Low importance, low performance (bottom left box) – these attributes are neither important
to overall engagement, nor performing well. While improving these will have some impact on
overall engagement, they will not have the same impact as those with higher importance. As
such, they are considered a secondary focus for improving engagement.
While the differentiation between stronger and weaker performance can be arbitrarily set at any point, as a rule of thumb, service industries define their top level of performance (boxes on
the right) at 70–100%. An attribute is considered a strong performer with an agreement or
satisfaction rating of 70% or more.
56
Results
As outlined in the following figure, the four key drivers of engagement for the ATO are:
The ATO gives me the right information to meet my needs
Dealing with the ATO is simple
I feel that the ATO listens to the needs of small business
The ATO are on my side
The top four attributes that small businesses agree with remain consistent from 2015 to 2017 and are the key drivers of engagement. In 2017, over half (51%) of those who agreed with these statements are satisfied with the ATO’s ability to provide advice, support and information. In contrast, of those who didn’t agree with the statements, only 13% were satisfied. These attributes therefore remain the key drivers of engagement, and should be the focus of engagement and communication activities.
The one significant change involves Statement C (the simplicity of dealing with the ATO), which is growing in importance for small businesses. As such, efforts towards making small business -ATO dealings simpler should deliver increased small business satisfaction.
Small businesses did not rate any attributes in the top right quadrant (high importance and high performance), indicating there are currently no clear strengths that the ATO can claim with respect to engaging with small businesses.
As outlined in the following figure, there are four key drivers of engagement for the ATO are:
The ATO gives me the right information to meet my needs
Dealing with the ATO is simple
I feel that the ATO listens to the needs of small business
The ATO are on my side
57
Performance attributes (ranked in order of importance)
Higher Importance / Lower Performance
A – The ATO gives me the right information to meet my needs
C - Dealing with the ATO is simple B - I feel that the ATO listens to the needs of small business
D - The ATO are not on my side*
Lower Importance / Lower Performance
E - The ATO does not do enough to support new businesses when they are first setting up*
F - The ATO is never going to help you save money K - I needed the ATO more when I first started the business than I do now
H - The ATO is more about compliance than helping small businesses*
I - I would prefer to contact a tax professional before contacting the ATO if I need help with my
tax*
G - I’d prefer to have nothing much to do with the ATO*
* Statements that were negative in nature have had their scale reversed for the purpose of consistent presentation
and interpretation among a ll s tatements.
58
A third (34%) of small businesses surveyed in 2017 stated dealing with the ATO is simple,
compared to 27% in 2015. There were also fewer small businesses who stated they would
rather have nothing to do with the ATO (35% 2017; 41% 2015).
Figure 32 Agreement with the four key drivers of engagement (%)
QF2. How much do you agree or disagree with the following statements about the ATO . These results exclude ‘don’t
know’ and ‘N/A’ answers. Base n = 800 (2017).
* For analysis purposes and to facilitate understanding, this statement was reversed to be positive and cons istent
with the other s tatements
59
8.1.3 Attitudinal segmentation
Attitudinal segmentation is a way to identify groups based on sets of shared attitudes. This approach recognises that attitudes drive and influence behaviour and groups audiences around those shared sentiments.
Figure 33 Attitudinal segmentation
QF1. How much do you agree or disagree with the following statements? Base n=800 (2015)/800 (2017)
60
Segmentation was undertaken using six attitudinal statements (latent class analysis). There were five small business attitudinal segments identified:
The
Proactive Knowledge
Seekers
The
Satisfied
The
Passive Motivated
The ATO
Rejecters
The
Overall Rejecters
n=150
(19%)
n=216
(27%)
n=149
(19%)
n=169
(21%)
n=117
(15%)
I know what the ATO could do
to help my business*
Agree
(41%)
Agree
(75%)
Disagree
(61%)
Disagree
(68%)
Disagree
(66%)
I’d prefer the ATO to contact
me directly when there have
been changes to tax
Agree
(62%)
Agree
(52%)
Agree
(82%)
Disagree
(75%)
Disagree
(26%)
I’d l ike to understand my
business’ tax requirements and
obligations better
Agree
(56%)
Agree
(55%)
Agree
(67%)
Agree
(55%)
Disagree
(53%)
I’m the kind of person that will
proactively seek out all the
information I need about tax.
Agree
(85%)
Agree
(77%)
Disagree
(58%)
Disagree
(26%)
Agree
(70%)
I’l l deal with business taxation
issues proactively, not only
when needed*
Agree
(78%)
Disagree
(79%)
Disagree
(73%)
Disagree
(65%)
Disagree
(88%)
I want personalised service
when dealing with my business
tax requirements
Agree
(77%)
Agree
(80%)
Agree
(82%)
Agree
(78%)
Disagree
(30%)
* For analysis purposes and to facilitate understanding, these statements were reversed to be positive and consistent
with the other s tatements
61
The proactive knowledge seekers:
• The most proactive: they are the kind of person that will proactively seek out all the
information they need about tax and they deal with business taxation issues ongoing,
not just when they arise.
• Eager to learn: they want to understand their business’ tax requirements and
obligations better and they want personalised service when dealing with their business tax requirements.
• Open to the ATO: they would prefer the ATO to contact them directly when there have
been changes to tax.
The proactive knowledge seeker small business is more likely to be registered for GST (95%),
and more likely to go about fulfilling their business’s tax and super requirements themselves (23%). Their small business is more likely to employ 6-10 people (20%), and is more likely to be
set up as a trust (20%). They are more likely to go to the ATO website when they look for
business tax advice or information (20%) or to online business/industry forums (4%). They are
more likely to be Chartered Accountant or CPA (13%).
The satisfied:
• Want personalised service: they want personalised service when dealing with their
business tax requirements, but only some have the desire to understand their small
business’ tax requirements.
• Know the ATO: they have a very good understanding of what the ATO can do to help
their small business but they only somewhat interested in the ATO contacting them directly when there have been changes to tax.
• Reactive: they say they are the kind of person that will deal with business taxation and
super issues only when they arise, but see themselves as proactively seeking out all the
information they need about tax.
The satisfied are more likely to prefer to contact the ATO before contacting a tax professional if they need help with their tax (69%), and are more likely to phone the ATO when looking for tax
advice or information (15%). They are more likely to have completed an industry course (33%).
62
The passive motivated:
• Want personalised service: they want to understand their small business’ tax
requirements and obligations better and they want personalised service when dealing
with their business tax requirements.
• Open to ATO: they would strongly prefer the ATO to contact them directly when there
have been changes to tax, but they mostly do not really know what the ATO can do to help their small business.
• Reactive: they are not at all the kind of person that will proactively seek out all the
information they need about tax and they tend to deal with business taxation issues
only when they arise.
The passive motivated are less likely to think the ATO gives them the right information to meet their needs (40%). They are more likely to have a few basic systems, but mostly deal with
business tax issues as they arise (25%), and are less likely to be confident about managing their
business tax requirements (22% are not confident). They are less likely to nominate they do it
themselves when it comes to fulfilling their business’s tax and super requirements (7% do it all
themselves).They are more likely to be a business in their start-up phase (11%). They are less likely to be extremely positive about the current state of their business (only 8% are).
The ATO rejecters:
• Do not know the ATO and do not want to interact: they do not want the ATO to
contact them directly when there have been changes to tax, and they do not know what
the ATO can do to help their small business.
• Reactive: they tend to deal with business taxation issues only when they arise and they
are not really the kind of person that will proactively seek out all the information they
need about tax.
• Want personalised serviced: they strongly want personalised service when dealing with
their business tax requirements, but are only somewhat interested in understanding their business’ tax requirements and obligations better.
The ATO rejecters would prefer to contact a tax professional before contacting the ATO if they
need help with their tax (92%). They are more likely to pay a professional to fulfil all their tax
and super requirements (32%). They are less likely to go to the ATO website when they look for
tax advice or information (6%).
63
The overall rejecters:
• Do not want to interact with the ATO : they do not know what the ATO can do to help
their small business, and are not very interested in the ATO contacting them directly
when there have been changes to tax.
• Reactive: they say they really only deal with business taxation and super issues when
they arise although they are the kind of person that will proactively seek out all the information they need about tax.
• Learning and personalisation rejecters: they do not want to understand their business’
tax requirements and obligations better and they are less interested in personalised
service when dealing with their business tax requirements.
The overall rejecters are more likely to be very confident about managing their business tax requirements (55%), and are not reliant at all on tax professionals to give them other types of
business advice (28%). They are less likely to have ever sought advice or looked for information
about their business tax requirements (25% answered not at all). They are more likely to do all
their tax themselves (22%). Their business has been in operation for more than 21 years (49%),
and they are less likely to be registered for GST (15% not registered).
64
9 Perceptions of tax agents regarding small business engagement
9.1.1 Why small businesses go to tax agents
As part of this research, 120 tax agents were surveyed about their experiences, interactions and
perceptions of their small business client base. Almost half of those in the sample (46%) had
worked as a tax professional for 21+ years. Twenty per cent had worked as a tax professional for
between 11-20 years and 21% for between 6-10 years. The tax agents worked across a variety of
practice tier classifications, and all had a focus on small business clients (minimum of 30% small business clients).
The findings from the research reinforce that tax agents perceive small business owners as time
poor, not inclined to learn the detail of tax and super, or the desire to manage them. It should
be noted that the tax agents were asked about their small business client base, and their
comments will not relate to those small businesses who are currently managing their own tax and super obligations. Tax agents surveyed say their small business clients come to them
because they:
• 97% do not know how to do tax and super themselves
• 93% do not have the time to do tax and super themselves
• 88% do not want to do tax and super themselves
• 87% are seeking help before they have registered their business or before starting their
business.
65
In addition, tax agents stated:
• 79% of small businesses coming to them are doing so after trying to do something
themselves and then encountering a tax or super problem
• 73% of small businesses seeking their assistance are doing so when they are in financial
trouble.
Figure 34 Reasons tax agents think small business come to them (%)
QC1. Which of the following reasons do you think small business clients come to you for business management or tax and super? Base n = 120. Respondents could choose multiple answers.
1
73
79
83
87
88
93
97
Not sure
Financial trouble
Encountering a tax or super problem
Business change/growth
Starting their business/business registration
Don’t want to do it themselves
Don’t have the time
Don’t know how to do it themselves
66
9.1.2 Tax agents services for small business Both small businesses and tax agents perceive that similar regulatory activities define their
interactions with each other. For example, 74% of small businesses say they mainly use tax
professionals for annual tax returns, compared to 68% of tax agents stating annual tax returns
as the main activity with clients. Likewise, BAS (40% for small businesses and 57% for tax agents) and GST management (11% and 23% respectively) feature highly.
Figure 35 Main regulatory activities tax agents help small business with (%)
QC2. What are the main tax activities, and other regulatory obligations (eg ASIC, s tate regulatory bodies) you helped small business clients with last year? These results exclude ‘don’t know’ and ‘N/A’ answers Base n = 120. Res pondents
could choose multiple answers.
0
3
3
5
5
6
6
7
8
9
13
14
17
19
23
33
57
68
Other external audit eg company audit
Income and deductions/depreciation…
Tax audits
Advising on tax regulations, legal changes, updates
General advice/information (non-tax regulations)
PAYG Instalments
Other (please specify)
Fringe Benefits Tax
Financial or other regulatory reporting to other regulators
Pay as you go (PAYG) withholding
Tax payments
Tax preparation
General Tax advice
Company reporting to ASIC
GST management
Super
Business Activity Statement (BAS) related
Annual tax returns
QC2. What are the main tax activities, and other regulatory obligations (eg ASIC, s tate regulatory bodies) you helped small business clients with last year? These results exclude ‘don’t know’ and ‘N/A’ answers Base n = 120. Respondents
could choose multiple answers.
67
Tax agents believe small businesses could be doing much more in regards to improving their systems and have concerns about their clients’ general understandings of :
cash flow (25%)
financial management (23%)
record-keeping (17%) business planning (17%).
Figure 36 Tax agents’ perceptions of the non-tax advice small business need most help with (%)
The 71% of small businesses that use tax professionals believe they have business
administration systems that are either efficient, effective or working well enough. However, 16% of small businesses who use tax professionals say they have basic systems but mostly deal
with things that come up. This largely agrees with tax agents’ perceptions of small business.
14
3
3
3
3
5
5
6
11
17
17
23
25
Not sure/Don't know
Selling Business/IP/Costing/Software
Marketing
Asset purchases
Research and Development
Compliance
Other (specify)
Business structure
Staff-related advice
Business planning
Record keeping: systems, maintenance
Financial management
Cash flow
QC6. What kind of non-tax or super advice do you think your small business cl ients most need help with? Base n = 120. Multiple response option.
68
9.1.3 Where small businesses go for advice Accountants see themselves as the preferred formal channel for small businesses to get advice
about running, managing or developing their own business (71%), followed by business and
industry associations (25%). Informal sources of advice were also mentioned as frequently used,
including family and friends (30%) and internet and google searches (17%).
Figure 37 Tax agents’ perceptions of small business preferred sources of advice (%)
QF1. Based on your own observations of small businesses, what are some of the main ways they get advice about
running, managing or developing their businesses? Base n = 120. Multiple responses
0
0
0
1
2
2
2
2
3
3
3
3
3
4
4
4
5
6
7
13
17
25
30
71
Business.gov.au (in Department of Industry, Innovation…
BAS agent
Existing clients
Superannuation company
State government business websites
Business partner
Small Business Commissioner
Not sure
Tax agent
Online business/industry forums
Mentor
Other (please specify)
Nowhere
Bookkeeper
Books, guides, leaflets
Previous experience/knowledge
Course, training program/seminar
Australian Taxation Office (ATO)
Other businesses
Bank/Financial Planner
Internet/Google search
Business/industry associations
Family, friends
Accountant
69
9.1.4 Type of advice tax agents provide to small business Of the tax agents surveyed, the main business advice provided was business structure (36%),
business planning (30%), and cash flow (28%). Respondents had some difficulty separating what
was strictly advice relating to tax and what was not, reflecting to complexities of this area.
Figure 38 Main business advice tax agents give to their small business clients (%)
QC3. Can you please list the kinds of business advice you give? Base n = 120. Multiple responses
* Please note the large None* section is a result of many respondents being unable to separate non -tax related
advice from business advice and therefore citing some kind of tax advice in this question.
19*
1
1
1
3
3
3
3
4
4
5
5
6
7
7
8
13
13
25
28
30
36
None
Product development/getting product IP registered
Website/online presence/digital strategy
Property
Marketing
Growth/Business planning
Selling the business/business exit strategy
Tax planning
Business Software
Financial reporting/forecasting
Setting up a Trust
Research and Development
Tax related
Asset purchases
Pricing eg costing of jobs, product pricing
Staff-related advice
Other (specify)
Record keeping: systems, maintenance
Financial management
Cash flow
Business planning
Business structure
70
9.1.5 Tax agents as a source of business advice The majority of tax agents (92%) are providing small business with some business advice, in
addition to advice on regulatory matters. Almost half (45%) indicated that it accounts for 11-
30% of their overall work with small business.
The qualitative research found that many tax professionals had difficulty separating non-tax
type advice from tax advice, suggesting the industry itself is still maturing from a transactional
business role to a more advisory role.
The qualitative interviews with small business owners and tax professionals also highlighted a
disconnect between what tax professionals think small businesses need in regards to business
advice and what small businesses themselves say they need. While not quantitatively captured,
small businesses said their biggest business concerns centred on getting new business and
marketing to potential customers. Tax agents, on the other hand, stated that cash flow (23%),
record keeping (22%) and time keeping (21%) were things they would most like to help clients
with.
The majority (78%) of tax agents say their small business clients are open to the idea of paying
them for business advice.
Figure 39 Tax agents’ perceptions of small businesses openness to paying for business advice
(%)
9.1.6
QD2. In your experience, are small businesses open to the idea of paying tax professionals for business advice? Base n = 120
78
13
9
1
Yes
No
A mix of both
Not sure
71
9.1.7 Perceived barriers to getting business advice Forty-eight per cent of tax agents perceive cost is a barrier for small businesses getting business
advice from them. A further 14% believe small businesses think they know better and 13%
believe small businesses do not see tax agents as business advisors. These findings reflect
discussions in the qualitative research.
Figure 40 Tax agents perceptions of barriers to small business seeking business advice (%)
QD3. Why do you think cl ients may not be not open to getting business advice from tax professionals?
Base n = 120 (2017)
48
14 13
6 5 5 43 2
Expensive Think theyknow better
Don’t see TPs as
bus iness advisors
Don’t know Othersources for
businessadvice
Other(specify)
Lack of trust They don’t think of it
Don't value it
72
9.1.8 Perceptions of frequency of interactions
There is some discrepancy between the perceptions held by tax agents and small businesses about how frequently they interact, with 95% of tax agents stating they interact with their small business clients at least quarterly compared to 72% of small businesses who use a tax professional saying they do. There was no significant difference between tax agents of different tiers for frequency of interaction.
Figure 41 Perceptions of frequency of interactions (%)
13
36
46
3 3
0
12
23
37
17
8
3
Around once aweek
Around once amonth
Around quarterly One or two times ayear
Once a year I only talk to themat tax time
What tax agents say What small businesses say
QC5a. How regularly would you interact with your typical small business client? Examples of interactions could be email or telephone call –
any way in which you communicate with one another. Base n = 120 AND QC1a. Apart from the lead up to tax time how regularly do you think you interact with your [tax professional, SC13]? Include small businesses who use tax professionals only. Base n = 674 (2017)
73
9.1.9 Tax agents and accounting software Seventy-five per cent of tax agents state that their small business clients use either accounting
software or some kind of computerised system to track their records. However, 10% of the
small business clients of tax agents still use paper-based receipts as their main form of record
keeping.
Figure 42 Tax agents nominated main small business record keeping systems (%)
Around two-thirds (64%) of tax agents recommend particular software to their small business
clients, while just over a third (36%) do not recommend any specific software. Recommended
software is listed below.
Figure 43 Software recommended by tax agents (%)
36
4
3
3
4
23
29
I don’t recommend specific software
Other
QuickBooks
Cash flow manager
Reckon
Xero
MYOB
QE1. When it comes to tax and super, what is the main way your small business clients keep track of their records? Base n = 120 AND QE3. What do you think would be the second most used way your clients keep track of their records? Combined responses.
0
3
8
43
53
77
Payroll software
Not sure
Other (specify)
Paper-based; eg box of receipts
Spreadsheets; eg Excel
Accounting software; eg MYOB, XERO, Intuit, QuickBooks
QE5. Do you recommend a particular accounting software to your small business clients? If so, what is it? Base n = 120
74
9.1.10 Tax agent perceptions of small business attitudes to the ATO
The majority of tax agents either agree or strongly agree (94%) that their small business clients prefer to contact them before contacting the ATO themselves. There was overall significant
agreement with the statements:
The ATO is more about compliance than helping small businesses (59% agree vs 10% disagree)
I feel that the ATO listens to the needs of small business (36% agree vs 24% disagree)
There was overall significant disagreement with the statements:
The ATO does not do enough to support new businesses when they are first setting up (42% disagree vs 24% agree)
The ATO is never going to help small businesses save money (39% disagree vs 32% agree)
Figure 44 Tax agents’ association with statements of small business clients and the ATO (%)
QG1. Us ing a scale of 1 to 5, where 1 i s s trongly disagree and 5 i s s trongly agree, how much do you agree or disagree with the following statements? Base n = 120
13
30↑
23
8
22
11
12
16↑
2↓
10
38↑
33
28
32
25
19
28
16
15
28
25
75↑
8↓
8↓
17
31
18
My clients would prefer to contact me before…
I feel that the ATO listens to the needs of small…
The ATO does not do enough to support new…
The ATO is never going to help small businesses save…
The ATO is more about compliance than helping…
Small businesses need the ATO more when first…
75
10 Appendix
Qualitative and quantitative instruments
10.1.1 Small business owner discussion guide
The handling of a moderation guide:
As an open method of exploration, focus groups are not completely standardised. Listing of relevant
questions in the moderation guide covers relevant subjects and leaves enough space for discussions in the
sense of an open approach. The questions mentioned below are not meant to be literally asked. Likewise,
the order must not be strictly followed. In this sense phrased questions describe the different subject areas
and are meant to control the discussion process. Each subject area is firstly explored openly. Then more
detailed probing by the moderator follows, with regard to subjects that were not spontaneously
mentioned by the participants, but that are relevant.
Discussion guide flow:
1. Introduction 2. Specific business context 3. Business networks 4. Natural business processes 5. Significance/importance of tax 6. ATO interactions (behaviours, experiences, motivations and barriers) 7. Co-creation activity – Small business thoughts on ATO service offerings/improvements
76
1. Introduction: 5 Mins -The purpose of this section is to clarify the reasons for the
research and build rapport with participant.
Moderator notes:
Introduce self.
Thank participant for their time. We are doing some research for the ATO, the purpose of which is to find better ways to
engage and support small businesses, especially in regards to their day to day management of their tax and super obligations.
This will be a very informal and confidential discussion and I’d ask you to be as honest as possible with your answers. The final report will show the combined responses of the people we speak to. Nothing you say will be attributed to you or your business.
If you’re comfortable, I would like to record the interview to assist with preparing our report. We adhere to the privacy principles of the Australian Market and Social Research Society.
2. Specific business context: 10 mins – The purpose of this section is to get the participant to ‘open up’, speak freely and for us to learn about their specific business.
Moderator notes:
To start things off, can you first tell me a little bit about yourself?
Now can you tell me a bit about your business; e.g. industry, structure, role, time in operation and number of employees?
Why did you start the business in the first place? [DETERMINE IF THIS IS THEIR FIRST BUSINESS OR NOT]
Tell me a little bit about what it was like when you first started your business?
And what kinds of things did you have to do when starting up? [KEEP A LIST AND TAKE NOTE OF COMPLIANCE-RELATED MATTERS DEALING WITH EMPLOYEES, TAX, SUPER, ETC.]
Can I ask how you knew to do those things in the first place?
CHOOSE SOME OF THE COMPLIANCE TASKS: Where did you specifically go to get these things sorted?
Did anyone help you to do these things? eg industry body, accountant, ATO website, etc?
Why did you choose these people to help you?
How confident were you that you were doing the right things?
77
And how did you feel about that? IF NOT IN START-UP: Now I’d like you to jump forward to where you’re at today. If you
look back on it, what do you consider some of the milestones in your business journey so far? KEEP A LIST OF THESE MILESTONES TO REFER TO
Can you tell me a bit about that? PROMPT FOR THE WHO, WHAT, WHERE, WHEN AND WHY OF EACH MILESTONE?
Why does that stand out? Why is that meaningful for you?
How were you feeling at that stage?
Did you get any advice to do that? What changed in your business as a result of that milestone?
How do you feel about it now?
3. Business networks: 10 mins – The purpose of this section is to gain clarity about their formal or informal business networks.
Can you tell me some of the ways you keep on top of what’s happening in your industry? PROBE FOR NETWORKS
How does that work? eg attend conferences, go to business groups, online forums, read trade magazines etc.
How did you hear about those places? Why do you choose to go to these places for information?
What kinds of things do you learn from these sources? e.g. marketing, HR advice, workplace safety, etc.
What does that do for you? I mean, how does it help you with your business? Could it do more for you? I mean, is there anything that these networks don’t do, but
could.
What about other kinds of business advice? I mean, not just things specific to your industry but things about business in general? Can you think of other places where you get business information from?
How does that work? eg attend conferences, go to business groups, online forums, read trade magazines etc.
Why do you choose to go to these places for information?
What kinds of things do you learn from these sources? e.g. marketing, HR advice, workplace safety, etc.
What does that do for you? I mean, how does it help you with your business?
Could it do more for you? I mean, is there anything that these networks don’t do, but could.
78
4. Natural business processes: 10 mins – The purpose of this section is to discover how – or if – tax fits within their existing business systems, perceptions/attitudes around their existing processes.
I’d like to shift topic just a bit and learn about your business systems. Can you now describe the things you do in order to keep on top of the day-to-day running of your business? KEEP A LIST AND CHECK FOR ONLINE OR OFFLINE, IN-HOUSE OR OUTSOURCED
IF NOT MENTIONED: Given that we’re doing this for the ATO, we’d also like to learn how ‘tax stuff’ fits within your business. Can you tell me how you deal with tax matters and any systems/process you have for them?
Can you tell me why you do it this way? CHECK FOR INFLUENCERS
Do specific things prompt you to think about tax?; eg times of year, calendar alerts, accountant.
IF NOT MENTIONED: Does any person or product help you with these matters? Who are they and how do they help? [NOTE ANY ACCOUNTANTS, 3RD PARTY PROVIDERS, IT SYSTEMS, ETC.]
Have you always done it this way? If not, what has changed? PROBE TO DISCOVER WHAT MIGHT HAVE CHANGED IN THEIR BUSINESS, OR WHO INFLUENCED THEM TO DO THINGS DIFFERENTLY.
How is this working out for you? What do you like or dislike about your processes?
Is there anything that would make them better?
Can you tell me the last time you had to go get help or information about your accounting requirements?
Why did you feel it important enough to get this help from someone else?
Who did you go to?
Why did you choose to go there specifically? PROBE FOR RATIONALE AND MOTIVATION, How did that work for you?
Has anything changed in your processes as a result of that assistance or are you doing anything differently?
5. Relationship with their accountant / bookkeeper / business advisor (behaviours, experiences, motivations and barriers) 10 mins The purpose of this section is a general discussion of these relationships, and the kinds of broad help and services they are accessing.
Tell me the last time you directly contacted your main accountant / bookkeeper / advisor or engaged with their products, tools or communication? PROBE TO SEE THE MOTIVATION FOR THIS ENGAGEMENT,
How did you find that experience? Did you manage to get what you needed? If not, how could it have been better?
79
What other things have you gone directly to your accountant / bookkeeper / advisor for?
So what is it that your accountant etc gives you in these interactions that other services can’t? PROBE FOR NOTIONS OF TRUST, BEST ADVICE, CONVENIENCE, RECORD KEEPING, AUTHORITATIVENESS, ETC.
Are your experiences with your accountant etc similar to what you hear from other small business owners?
Why might that be?
What types of things wouldn’t you go to your accountant etc for?
Who would you go to for this help or support? Why is that?
6. Significance/importance of tax and super 10 mins The purpose of this section is to discover: how much tax matters affect them, perceptions of burden/efficiency.
In general, how do you feel about tax and superannuation requirements?
What kinds of words would you use to describe the role that tax and super plays in y our business? eg time-consuming, easy, obligatory, opportunistic, etc.
Do you think that’s a common view for people in small business or are you different in some way?
Why do you think that is?
Are there certain aspects of the tax and super system that are easier or harder than others? Dealing with the tax office?
Which are easier to deal with and why do you think that might be?
Which are harder to deal with and why do you think that might be?
IF IT HASN’T COME UP: Is there anything good about dealing with tax? If so, what are the benefits and how does it make you feel?
7. ATO interactions (behaviours, experiences, motivations and barriers) 10 mins The purpose of this section is to discern if there are any differences in people’s minds about what the ATO can offer and what other sources offer. We also want to know what people’s first-hand experiences are and compare these with perceptions of what they think they will be like.
Tell me the last time you directly contacted the ATO or engaged with its products, tools or communication? PROBE TO SEE THE MOTIVATION FOR THIS ENGAGEMENT, WHY THAT SPECIFIC CHANNEL WAS SELECTED AND WHETHER IT WAS INBOUND OR OUTBOUND
Why did you choose to do it that way? e.g phone over website, app over website, etc...
How did you find that experience? Did you manage to get what you needed? If not, how could it have been better?
What other things have you gone directly to the ATO for?
80
So what is it that the ATO gives you in these interactions that other services can’t? PROBE FOR NOTIONS OF TRUST, BEST ADVICE, CONVENIENCE, RECORD KEEPING, AUTHORITATIVENESS, ETC.
Are your experiences with the ATO similar to what you hear from other small business owners?
Why might that be? What types of things wouldn’t you go to the ATO for?
Who would you go to for this help or support? Why is that?
8. Co-creation activity: 5 mins The purpose of this section is to leave small businesses feeling empowered and to bring to the surface any possible service delivery solutions that may arise.
I’d like you to imagine for a moment that you work at the ATO and are tasked with helping a small business like you with tax matters. What kinds of things would you suggest they do to help?
GO DEEPER: What else can you think of? For example, is there a product, service or communication that you think could be developed or improved to better meet your needs?
As a final activity, I’d like you to write down (or tell me) any final message you’d like my client to know about businesses like yours? What is the overriding message you think they need to hear, in order to help people like you in regards to tax matters.
Close
Thanks, incentive and signature/acknowledgement of incentive.
81
10.1.2 Tax professional discussion guide
The handling of a moderation guide:
As an open method of exploration, focus groups are not completely standardised. Listing of relevant
questions in the moderation guide covers relevant subjects and leaves enough space for discussions in the
sense of an open approach. The questions mentioned below are not meant to be literally asked. Likewise,
the order must not be strictly followed. In this sense phrased questions describe the different subject areas
and are meant to control the discussion process. Each subject area is firstly explored openly. Then more
detailed probing by the moderator follows, with regard to subjects that were not spontaneously
mentioned by the participants, but that are relevant.
Discussion guide glow:
1. Introduction 2. Specific business context 3. Understanding of small business client base 4. Small business issues 5. Small business processes 6. Advisors relationship with ATO and ATO systems 7. Co-creation activity – Small business thoughts on ATO service offerings/improvements 8. Close
82
1. Introduction: 2 Mins –The purpose of this section is to clarify the reasons for the
research and build rapport with participants.
Moderator notes:
Introduce self
Thank participant for their time We are doing some research for the ATO, the purpose of which is to find ways to make
life easier for small businesses and the people who support them with business decisions and processes.
This will be a very informal and confidential discussion and I’d ask you to be as honest as possible with your answers. The final report will show the combined responses of the people we speak to. Nothing you say will be attributed to you or your business
If you’re comfortable, I would like to record the interview to assist with preparing our report. We adhere to the privacy principles of the Australian Market and Social Research Society.
2. Specific business context: 5 mins – The purpose of this section is to get the participant
to ‘open up’, speak freely and for us to learn about their specific business.
Moderator notes:
To start things off, can you first tell me a little bit about yourself? Now can you tell me a bit about your business; e.g role, time in operation and number
of employees?
3. Understanding of small business client base: 10 mins – The purpose of this section is to
better understand the types of clients business advisors have and the nature of their
business.
I’d also really like to know about your client base. Can you tell me a bit about them, and the kinds of businesses they run? TRY TO ASCERTAIN WHAT THE MATURITY IS OF THE BUSINESSES THEY SUPPORT, THE SIZES OF THE BUSINESSES, AS WELL AS SPECIFIC INDUSTRY TYPES
So what would your typical client do, what kind of business would they be in, and what kinds of things are on their mind?
83
Have you gone after this kind of business specifically? If so, why is that? And how do they find you specifically? EG ADVERTISING, COLD CALL, REFERRAL, ETC.
I’d also like to know how you keep clients happy? What sorts of things do you do to keep them on your books?
Which of those things do you think work the best? What is challenging about convincing your clients of your services?
As technology changes, are you looking to provide a greater service to your clients outside of traditional accounting and compliance related activities? Are you becoming more of a Business Advisor looking at all elements involved in a Business Plan to help grow your clients business?
4. Small business issues – 15 mins The purpose of this section is to discover the common
business issues their clients have.
Tell me about the last client you spoke to. What did you do for them? Would you say that is normal or different to most of your clients? Why do you say that?
So tell me what kinds of things your clients regularly come to you for help with?
Are there certain things that are easier or harder than others for them to work out? Why do you think these things are an issue for them?
Are there any differences between what you think they need and what they want?
Why do you think those differences exist?
So, for example, what services won’t clients pay for or that you find hard to up-sell? Why do you think that is?
What do you think could be done about it?
QUICK PROJECTION ACTIVITY: I’d like you to imagine that someone beside your clients was paying you to help small businesses. Can you tell me what types of things you would like to do for them that they don’t do? LIST THESE DOWN
Why do you think those are the most important things for them to get right?
Why is that important?
5 Small business processes – 15 mins The purpose of this section is to discover the
common tax-processes clients have and what kinds of solutions their advisors give
them.
So, now just thinking about tax and super, what would you say pushes people to get tax and super help in the first place? CHECK FOR INFLUENCERS/ MOTIVATION: EG COMPLIANCE WARNING, INDUSTRY ASSOCIATION ADVICE, INFORMAL NETWORK, TOO MUCH WORK
Are there certain aspects of the tax system that are easier or harder than others for them to work out?
84
Why do you think these things are an issue for them? Can you see any trends in this? I mean, are there common reasons for them needing
help?
Do you think there’s anything that can be done about this? For example, could you or the ATO get involved earlier to help them out or do they need different type of training or communications?
What about trends in, say, the industry type or the age of the business. Can you see any commonalities there?
Can you describe what sort of state are their businesses in when they come to you?
So when a client first comes to you, can tell me how you go about helping them? What kinds of things, systems, processes or structures would you consider for them?
GO DEEPER: How exactly does that work? EG: OVER THE PHONE, VIA SOFTWARE, APP, ETC…?
How do they feel about that? Is it hard for them to work this out? What kind of support do they need to get this in place?
In your opinion, have you seen this change over time? I mean, are people coming to you for different reasons than they used to? Why is that? TRY TO DETERMINE IF THE NATURE OF SUPPORT IS CHANGING, OR IF TECHNOLOGY IS HAVING AN INFLUENCE
6 Advisors relationship with ATO and ATO systems – 5 mins. The purpose of this section
is to discover how tax advisors feel about the ATO, as well as to learn about how their
own systems and processes work with the ATO?
I’d like to now talk about your own experience with the ATO. Can you tell me how you keep up-to-date with changes at the ATO and what this might mean for your clients? These could be, say, policy or technological changes?
Is there anything you think could be improved with the way the ATO sends information to you?
Now can you tell me about your dealings with the ATO? I’m thinking about more transactional things you do for your clients.
How might you describe your interactions with them? Eg efficient, annoying, seamless , straightforward, cumbersome.
Tell me the last time you directly contacted the ATO or engaged with its products, tools or communication? PROBE TO SEE THE MOTIVATION FOR THIS ENGAGEMENT, WHY THAT SPECIFIC CHANNEL WAS SELECTED AND WHETHER IT WAS INBOUND OR OUTBOUND
And how well would you say that interaction went?
In your opinion, what kinds of things could the ATO do – or provide – that would make your life easier?
85
What about for your clients? What could the ATO provide or communicate that would make their lives easier?
7. Co-creation activity: 5 mins The purpose of this section is to leave advisors feeling
empowered and to bring to the surface any possible service delivery solutions that may
arise.
I’d like you to imagine for a moment that you work at the ATO and are tasked with helping small business accountants improve their clients’ businesses and meet their compliance requirements. What kinds of things would you suggest the ATO does to help?
GO DEEPER: What else can you think of? For example, is there a product, service or communication that you think could be developed or improved to better meet your needs? Or other ways the ATO and the tax profession and/or other community members could work together better to support small business?
As a final activity, I’d like you to write down (or tell me) any final message you’d like my client to know about tax advisors like you? What is the overriding message you think they need to hear, in order to help small businesses in regards to tax matters.
8. Close
Thanks, incentive and signature/acknowledgement of incentive.
86
10.1.3 Small business CATI survey
16-090561 Small business engagement research
Telephone survey with business owners
INTRODUCTION
Hello, my name is ______________ calling on behalf of Winangali, a social research company. I am not trying to sell you anything. We are currently doing some research on small businesses on
behalf of the Australian Government regarding small business needs and your preferences for
receiving information and interacting with government.
The survey will last about 15 minutes. It can be done now or at a time that is more convenient to
the Business Owner. May I speak to the Business Owner please? [IF JOINT OWNERS ASK FOR THE
ONE THAT IS THE PERSON WHO MAINLY DEALS WITH TAX OR SUPER]
[IF MORE INFORMATION ON RESEARCH REQUIRED]
The Australian Taxation Office is seeking information on how it can help small businesses in
regards to tax and super. This includes those businesses that get tax help from people like accountants or business advisors. This research will help the ATO better understand small
business needs and also possibly help to develop new products and services. Your contact
information has been sourced by Dunn and Bradstreet, a data collection company.
[IF QUERIED ABOUT BONA FIDES OF RESEARCH] I can provide the names of people who will verify
the legitimate nature of this research project. The first is the Australian Market and Social
Research Society enquiry line on 1300 364 830 who can verify that we are a legitimate market and social research company. The second is the research project manager, Patrick Watson at
Ipsos, the organisation managing this research project, who can discuss the specifics of this
research. His phone number is 042 025 2165. Respondents can also verify the authenticity of the research by contacting the ATO switchboard on 13 28 69 and asking for Marisa Strazzari ext
72983.
Alternatively, they can check the credentials at the ATO website:
https://www.ato.gov.au/About-ATO/Research-and-statistics/Our-research/Current-research-
projects/?sbn
This survey has been approved by the Australian Government Statistical Clearing House. Would you like the Approval Number? 02545-01
87
SECTION A: SCREENER
ASK ALL:
To start off with, I have a few questions about you and your business....
SC1. How long have you been involved in managing the business administration of this
(or other) businesses?
SINGLE RESPONSE
Less than one year 1
1 – 2 years 2
3 – 5 years 3
6 – 10 years 4
11 – 20 years 5
21 years + 6
I don’t manage the business administration 7
TERMINATE. CLOSE AND READ TERMINATION SCRIPT.
Don’t know/can’t remember 98
Prefer not to say 99
INTERVIEWER TO READ: The following questions relate to the business telephone number that I have called you on.
88
So, if you do have more than one business, please answer the questions only with this business in mind.
SC2. Where is your main business location?
SINGLE RESPONSE. PROMPT IF NECESSARY. IF MENTION ‘OVERSEAS’, ASK: Where is the main location in Australia?
IF MULTIPLE LOCATION IN AUSTRALIA CLARIFY: This is where you have the largest part of your business
Sydney 1 Check Quotas
NSW 141
VIC 141
QLD 94
WA 94
SA 94
TAS 70
NT 70
ACT 47
Total 750
NSW – other 2
Melbourne 3
VIC – other 4
Brisbane 5
QLD – other 6
Perth 7
WA – other 8
Adelaide 9
SA – other 10
TAS 11
NT 12
ACT 13
SC3. What was your approximate turnover for the financial year 2015-2015? IF NECESSARY: That is from the 1st of July 2015 until the 30th of June 2015. IF NECESSARY: Turnover is also known as ‘Gross sales’ or ‘revenue’
READ OUT.
Less than $75,000 1
MONITOR NUMBERS $75,000 - $2 million 2
Over $2 million 4 TERMINATE CLOSE
AND READ TERMINATION SCRIPT.
Do not wish to answer 99 TERMINATE CLOSE
AND READ TERMINATION SCRIPT.
89
SC4. Is your business set up as a…?
READ OUT. MULTIPLE RESPONSE ALLOWED
Sole trader 1 GO TO SC6
Partnership 2
Company 3
Trust 4
(Self-managed super fund) 5 DO NOT READ OUT
(Do not wish to answer) 99 DO NOT READ OUT
ASK IF SC4 = 2 to 4
SC5: How many people are currently employed in your business, not including contractors, volunteer staff or yourself? (INTERVIEWER NOTE: This is the total number, including part time and casual staff)
0 1
1–5 employees 2
6–10 employees 3
11–20 employees 4
90
More than 20 employees 5
Unsure 98
TERMINATE. CLOSE AND
READ TERMINATION SCRIPT.
SC6. Is your business registered for GST?
SINGLE RESPONSE
Yes 1
No 2
Don’t know 98
SC7. And can I confirm that your main business is in the <INSERT INDUSTRY TYPE FROM SAMPLE> industry? CODE AS CONFIRMED BY RESPONDENT.
Agriculture, Forestry and Fishing 1
Mining 2
Manufacturing 3
Electricity, Gas, Water and Waste Services 4
Construction 5
Wholesale Trade 6
Retail Trade 7
Accommodation and Food Services 8
Transport, Postal and Warehousing 9
91
Information Media and Telecommunications 10
Financial and Insurance Services 11
Rental, Hiring and Real Estate Services 12
Professional, Scientific and Technical Services 13
Administrative and Support Services 14
Public Administration and Safety 15
Education and Training 16
Health Care and Social Assistance 17
Arts and Recreation Services 18
Other Services 19
Other (please specify)________________________ 97
Unsure 98
SC8. Which of the following best represents the stage your main business is currently in?
READ OUT. SINGLE RESPONSE
My business is in the early stages (start-up phase) 1
The business is established 2
The business is about to go through major changes (e.g. expanding, downsizing, changing direction) 3
I am considering exiting the business (e.g. selling, closing, transferring ownership) 4
(Do not read out) Prefer not to answer 99
(Do not read out) Don’t know 98
SC9. How long has your main business been in operation?
SINGLE RESPONSE
Less than one year 1
1 – 2 years 2
3 – 5 years 3
6 – 10 years 4
11 – 20 years 5
92
21 years + 6
Don’t know/can’t remember 98
Prefer not to say 99
SC10. Is your business 50% or more indigenous owned?
Yes 1
No 2
Don’t Know 98
Prefer not to say 99
QSC11. Have you undertaken any of the following types of training in business
management or administration? READ OUT. MULTIPLE RESPONSE
University degree or diploma 1
Full-time TAFE course 2
Short courses at TAFE or other private institutions 3
Industry course 4
Chartered Accountant (CA) or Certified Practicing Accountant (CPA) qualification 5
On the job training as an administrator 6
(Do not read out) None of the above 97
(do not read out) Prefer not to say 99
93
SECTION B: CURRENT PERCEPTIONS
ASK ALL
QB1. Using a scale of 1 to 5, where 1 is extremely negative and 5 is extremely positive, how
positive or negative would you say you are currently feeling about how your business is
performing at the moment?
Extremely Extremely DK N/A
negative positive
1 2 3 4 5 98 99
QB2. And using the same scale of one to five, how are you feeling about the future of your
business, in say 12 months from now? PROMPT IF NECESSARY: A rating of one is
extremely negative and 5 extremely positive.
Extremely Extremely DK N/A
negative positive
1 2 3 4 5 98 99
QB3: In your opinion, which of the following statements would you say best represents your
business administration systems: IF NECESSARY: Business administration systems include
things like paying staff, sending invoices, record keeping, etc.
READ OUT
SINGLE RESPONSE ONLY
I have systems that are efficient and effective 1
I have systems that work for me, but they could probably be better 2
I have a few basic systems, but mostly deal with things as they come up 3
94
I work with systems that were developed by someone else
NOTE FOR INTERVIEWER: EXAMPLES INCLUDE CONTRACTORS, PEOPLE WHO BOUGHT
BUSINESSES OR FRANCHISE SYSTEMS
4
QB4: Thinking about when you first started your current business, where did you go for advice or
information on these issues? PROBE: Anywhere else?
DO NOT READ OUT. MULTIPLE RESPONSE
Australian Taxation Office (ATO) 1
State government business websites 2
Business.gov.au (in Department of Industry, Innovation and Science) 3
Accountant 4
Bookkeeper 5
Tax agent 6
BAS agent 7
Other businesses 8
Business partner 9
Family, friends 10
Business/industry associations 11
95
Course, training program/seminar 12
Books, guides, leaflets 13
Online business/industry forums 14
Internet/Google search 15
Superannuation company 16
Mentor 17
Bank/Financial Planner 18
Previous experience/knowledge 19
Department of Fair Trading 20
Fair Work Australia 21
Small Business Commissioner 22
Existing clients gdftgf
23
Other (please specify) 97
Nowhere 99
96
QB5. When did you first start thinking about your business tax requirements? Would it be…
READ OUT. SINGLE RESPONSE. INTERVIEWERS: PLEASE PROMPT RESPONDENT TO ANSWER AS THEY HEAR THE OPTION THAT BEST APPLIES TO THEM.
Before you started the business 1
As soon as the business started operating 2
When your accountant/tax professional brought it to your attention 3
When you received/wrote your first invoice 4
When it was time to lodge your first business tax return 5
Reached GST ($75k) 6
When I got a compliance warning
8
When a friend/family brought it up
9
DO NOT READ OUT – I haven’t started thinking about business tax requirements yet 7
Other specify
97
(DO NOT READ OUT) Can’t remember 98
97
QB6. Using a scale of 1 to 5, where 1 is not at all confident and 5 is very confident, how
confident are you in managing your business tax requirements?
Not at all Very DK N/A
confident confident
1 2 3 4 5 98 99
QB8.Have you ever sought advice or looked for information about business tax requirements
? PROBE FULLY.
Yes 1
No, not at all 2 – GO TO SECTION C
Not yet, but might 3– GO TO SECTION C
Can’t remember 9– GO TO SECTION C
QB9a. When you were looking for this business tax advice or information, where did you go first?
SINGLE RESPONSE
QB9b. Anywhere else? MULTIPLE RESPONSE
Qb9a QB9b
Australian Taxation Office (ATO) phone 1 1
Australian Taxation Office (ATO) service centre 2 2
ATO Website 3 3
Other government departments 4 4
98
Business.gov.au 5 5
Accountant 6 6
Bookkeeper 7 7
Tax agent 8 8
BAS agent 9 9
Other businesses 10 10
Business partner 11 11
Family, friends 12 12
Business/industry associations 13 13
Course, training program/seminar 14 14
Books, guides, leaflets 15 15
Online business/industry forums 16 16
Google search 17 17
Superannuation company 18 18
Mentor 19 19
Other (please specify) 97 97
Nowhere 20
No other 99
SECTION C: TAX PROFESSIONALS
SC11. Which of the following would best describe how you go about fulfilling your business’s
tax and super requirements? READ OUT. SINGLE RESPONSE
I do it all myself 1 Classify as ‘DIY Tax
user’. CONTINUE TO
SECTION D
I do some of it myself, but also
pay a professional to help me
2 Classify as
‘Professional Tax user’
I pay a professional to do all of
it
3 Classify as
‘Professional Tax user’
99
CONTINUE THIS SECTION ONLY IF CLASSIFIED AS A ‘PROFESSIONAL TAX USER’; i.e ASK ONLY If ANSWERED 2 or 3 AT Q C11 ALL OTHERS GO TO SECTION D
For this next set of questions, I’ll be asking you some questions about tax professionals. For
example, tax agents, BAS agents, accountants and bookkeepers.
SC13. You mentioned earlier that you pay for professional help with your tax and super.
Which of the following professionals do you use? READ OUT. MULTIPLE RESPONSES
ALLOWED
Accountant 1
Business Advisor 2
Bookkeeper 3
BAS agents 4
Tax agents 5
Other (specify) 97
QC1. Thinking now specifically about these [PLUG IN ANSWER FROM SC13], what is the main business tax activity you used them for within the last year? PROBE: Anything else?
DO NOT READ OUT. MULTIPLE RESPONSE
Business structure/Business Planning 1
Business Activity Statement (BAS) related 2
GST management 3
Income and deductions/depreciation 4
information/advice/management
Pay as you go (PAYG) 5
100
Record keeping: systems, maintenance 6
Advising on tax regulations, legal changes, updates 7
Superannuation 8
Tax advice 9
Tax preparation 10
Tax payments 11
Annual tax returns 12
General advice/information 13
Other (please specify) 97
Don’t know 98
Refused 99
QC1a. Apart from the lead up to tax time how regularly do you think you interact with your [PLUG IN ANSWER FROM SC13]?
DO NOT READ OUT
PROBE IF REQUIRED
Around once a week 1
101
Around once a month 2
Around Quarterly 3
One or two times a year 4
Once a year 5
I only talk to him/her at tax
time
6
Unsure 98
QC2. What benefits are there to using your [PLUG IN ANSWER(S) FROM SC13]? PROBE: Anything else?
DO NOT READ OUT. PROBE FULLY. MULTIPLE RESPONSE ALLOWED
Personalised service 1
Knows my business 2
Saves me time 3
Cost effective 4
Financial benefits or saves me money 5
Trust/confidence 6
On my side/work for me 7
Reliable 8
102
Easy to get hold of/access 9
Not having to do it myself 10
Have the tax knowledge/expertise 11
Familiarity with the ATO and the way they work 12
Habit 13
Keeps me out of trouble/meets my obligations 14
Doing the right thing
15
Other (please specify) 97
Don’t know 98
QC3. Using a scale of 1-5, where 1 is not reliant at all and 5 is extremely reliant, to what extent
do you think you rely on your [PLUG IN ANSWER FROM SC13] to manage your tax and super
affairs?
Not reliant at al Extremely DK N/A
reliant
1 2 3 4 5 98 99
103
QC4. Using the same scale of 1-5, where 1 is not reliant at all and 5 is extremely reliant, to what
extent do you think you rely on your [PLUG IN ANSWER FROM SC13] to give you other types of
business advice?
Not reliant at al Extremely DK N/A
reliant
1 2 3 4 5 98 99
QC5. Are there any negative aspects of using an accountant or bookkeeper?
Yes 1
No 2 GO TO SECTION D
Not sure 9 GO TO SECTION D
ASK ONLY IF ANSWERED 1 AT QC5
QC6: What do these negative aspects include?
DO NOT READ OUT. PROMPT ONLY IF NECESSARY
Expense involved 1
Not sure if they’re needed 2
Poor service 3
Hard to get a new one because they know my system 4
Old-fashioned 5
Other (specify) 98
Prefer not to answer 97
104
SECTION D: ASSOCIATIONS & ATO
ASK ALL
Now I’d like you to think about the Australian Taxation Office or ATO for this next set of questions.
QD1. Within the last year, what are the reasons you would generally interact with the ATO
for? PROBE: Anything else?
DO NOT READ OUT. PROBE FULLY. MULTIPLE RESPONSE
Business structure 1
Business Activity Statement (BAS) related 2
GST management 3
Income and deductions information/advice/management 4
Pay as you go (PAYG) 5
Record keeping: systems, maintenance 6
Advising on/questions about regulations, legal changes, 7
updates
Superannuation 8
Tax advice 9
Tax preparation 10
105
Tax payments 11
Payment arrangements (for debt) 12
Annual tax returns 13
General advice/information 14
Arranging payment extensions 15
Error in tax return 16
When didn’t understand something 17
Needing to change/update details 18
Other (please specify) 97
Don’t know/refused 98
I don’t interact with the ATO at all 19
I have not interacted with the ATO in the last year 20
106
QE1. For this next question, I’m going to read out some words and I’d like you to tell me if
that word best represents the ATO and/or a Tax Professional or neither. (Interviewer
prompt if needed: If you have had little or nothing to do with a tax agent or ATO, we are
still interested in your thoughts.) The first word is…
READ OUT. RANDOMISE. SINGLE RESPONSE
Tax
ATO profession Both Neither Not sure
al
a. Trusted 1 2 3 4 9
b. Reliable 1 2 3 4 9
c. Efficient 1 2 3 4 9
d. Capable 1 2 3 4 9
e. Knowledgeable 1 2 3 4 9
f. Cost effective 1 2 3 4 9
g. Consistent 1 2 3 4 9
h. Accessible 1 2 3 4 9
i. Approachable 1 2 3 4 9
j. Supportive 1 2 3 4 9
k. Honest 1 2 3 4 9
SECTION E: ENGAGEMENT PROFILE
107
ASK ALL
QF1. Using a scale of 1 to 5 where 1 is strongly disagree and 5 is strongly agree, how much do
you agree or disagree with the following statements. [INTERVIEWER PROMPT IF NECESSARY: 1
means strongly disagree and 5 means strongly agree]. READ OUT. RANDOMISE ORDER
Strongly
disagree Disagree
Neither
agree nor
disagree Agree
Strongly
agree DK N/A
a) I have no idea what the ATO
1 2 3 4 5 98 99
could do to help my business
b) I’m the kind of person that will
proactively seek out all the 1 2 3 4 5 98 99
information I need about tax.
c) I’ll deal with business taxation
1 2 3 4 5 98 99
issues only when needed
d) I’d like to understand my
business’ tax requirements and 1 2 3 4 5 98 99
obligations better
e) I want personalised service when
dealing with my business tax 1 2 3 4 5 98 99
requirements
f) I’d prefer the ATO to contact me
directly when there have been 1 2 3 4 5 98 99
changes to tax
108
QF2. Using the same scale, how much do you agree or disagree with the following statements
about the ATO?
[INTERVIEWER PROMPT IF NECESSARY: 1 means strongly disagree and 5 means strongly
agree] READ OUT. RANDOMISE ORDER
Strongly
Neither
Strongly
Disagree agree
nor Agree DK N/A disagree agree
disagree
a) Dealing with the ATO is simple 1 2 3 4 5 98 99
b) I would prefer to contact a tax
professional before contacting the 1 2 3 4 5 98 99
ATO if I need help with my tax
c) I feel that the ATO listens to the 1 2 3 4 5 98 99
needs of small business
d) The ATO are not on my side 1 2 3 4 5 98 99
e) I needed the ATO more when I
first started the business than I do now 1 2 3 4 5 98 99
f) The ATO gives me the right 1 2 3 4 5 98 99
information to meet my needs
g) The ATO is more about
compliance than helping small 1 2 3 4 5 98 99
businesses
h) The ATO is never going to help you save money
1 2 3 4 5 98 99
i) The ATO does not do enough to
109
support new businesses when 1 2 3 4 5 98 99
they are first setting up
j) I’d prefer to have nothing much to do with the ATO
1 2 3 4 5 98 99
SECTION F: PERFORMANCE
ASK ALL:
QG1. Using a scale of 1 to 5 where 1 is very dissatisfied and 5 is very satisfied, overall, how
satisfied or dissatisfied are you with the ATO’s ability to provide advice, support and
information for your business?
Very Very
DK N/A
dissatisfied
satisfied
1 2 3 4 5 98 99
SECTION G: CLOSE
110
Thank you very much for your participation in our survey. Just to confirm, all the answers you
provided are treated in the strictest confidence and will be aggregated with other people’s
answers for analysis. They will not be passed on to anyone or anywhere else.
In case my supervisor needs to contact you to check the validity of this interview, could I
please confirm some details?
RESPONDENT’S FIRST NAME: ____________________
PHONE: _______________________________________
COMPANY NAME: _______________________________
As a Market Research company, we comply with the requirements of the Privacy Act. Would
you like me to read out the details of how Ipsos complies with the Privacy Act (again)?
In accordance with the Privacy Act, once information processing has been completed, 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 that your name and contact details remain with your survey
responses, which will be approximately 2 to 4 weeks, you will be able to contact us to request
that some or all of your information be deleted. Thank you for your time.
TERMINATION SCRIPT:
Thank you for your time. Unfortunately we have reached the allocated quota for this study
and I will need to leave the survey there
Just to confirm, all the answers you provided are treated in the strictest confidence and will
be aggregated with other people’s answers for analysis. They will not be passed on to
anyone or anywhere else.
In case my supervisor needs to contact you to check the validity of this interview, could I
please confirm some details?
RESPONDENT’S FIRST NAME: ____________________
PHONE: _______________________________________
COMPANY NAME: _______________________________
111
10.1.4 Tax professionals CATI survey
16-090561 Small business engagement research
Telephone survey with tax professionals
INTRODUCTION
Hello, my name is ______________ calling on behalf of Winangali, a social research company. I am not trying to sell you anything. We are currently doing some research on small businesses for
the Australian Government. The purpose of the research is to better understand the ways – and
reasons why – small businesses interact with tax professionals. Acknowledging your important relationship with your small business clients, the ATO would also like to understand how we could
help tax professionals to assist their small business clients further.
The survey will last about 10 minutes. It can be done now or at a time that is more convenient to one of your tax professionals. May I speak to the Business Owner or a tax professional please?
CAPTURE INFO IF CALL BACK REQUIRED
[IF MORE INFORMATION ON RESEARCH REQUIRED]
The Australian Taxation Office is seeking information on how it can help small businesses and
tax professionals in regards to tax and super. Your contact information has been provided by the
ATO.
[IF QUERIED ABOUT BONA FIDES OF RESEARCH] I can provide the names of people who will verify
the legitimate nature of this research project. The first is the Australian Market and Social
Research Society enquiry line on 1300 364 830 who can verify that we are a legitimate market and social research company. The second is the research project manager, Patrick Watson at
Ipsos, the organisation managing this research project, who can discuss the specifics of this
research. His phone number is 042 025 2165. Respondents can also verify the authenticity of the research by contacting the ATO switchboard on 13 28 69 and asking for Marisa Strazzari ext
72983.
Alternatively, they can check the credentials at the ATO website:
https://www.ato.gov.au/About-ATO/Research-and-statistics/Our-research/Current-research-
projects/?sbn
This survey has been approved by the Australian Government Statistical Clearing House. Would you like the Approval Number? 02545-01
112
SECTION A: SCREENER
ASK ALL:
To start off with, I have a few questions about you in your role as a tax professional.
SC1. How long have you worked as a tax professional?
SINGLE RESPONSE
Less than one year 1
1 – 2 years 2
3 – 5 years 3
6 – 10 years 4
11 – 20 years 5
21 years + 6
Don’t know/can’t remember 98
Prefer not to say 99
SC2. And where are the majority of your small business clients located? [insert from ATO-provided list].
IF MULTIPLE LOCATION IN AUSTRALIA CLARIFY: This is where you have the largest part of your small business clients. IF REQUIRED: Small businesses are typically defined as having an annual turnover of less than $2million.
113
SC2b. And after that location, where would the next largest client base be?
Sydney metro 1
NSW – other 2
Melbourne metro 3
VIC – other 4
Brisbane metro 5
QLD – other 6
Perth metro 7
WA – other 8
Adelaide metro 9
SA – other 10
TAS 11
NT 12
ACT 13
Not sure 98
No other 97
Sydney metro 1 Check Quotas
State
NSW / ACT 40
Vic 30
Qld 24
WA 12
SA 9
Other 5
TOTAL 120
NSW – other 2
Melbourne metro 3
VIC – other 4
Brisbane metro 5
QLD – other 6
Perth metro 7
WA – other 8
Adelaide metro 9
SA – other 10
TAS 11
NT 12
ACT 13
114
SECTION B: CLIENT PROFILES
QB1. What industry would most of your small business clients come from?
QB1b: And after that, what industry do you think the second biggest portion might come from?
CODE AS CONFIRMED BY RESPONDENT.
QB1 QB1b
Agriculture, Forestry and Fishing 1 1
Mining 2 2
Manufacturing 3 3
Electricity, Gas, Water and Waste Services 4 4
Construction 5 5
Wholesale Trade 6 6
Retail Trade 7 7
Accommodation and Food Services 8 8
Transport, Postal and Warehousing 9 9
Information Media and Telecommunications 10 10
Financial and Insurance Services 11 11
Rental, Hiring and Real Estate Services 12 12
Professional, Scientific and Technical Services 13 13
Administrative and Support Services 14 14
Public Administration and Safety 15 15
Education and Training 16 16
Health Care and Social Assistance 17 17
Arts and Recreation Services 18 18
Other Services 19 19
No Other 99
Other (please specify)________________________ 97
97
Unsure/Couldn’t say 98
115
QB2. Do you consider yourself a specialist for this/these particular industries?
Yes 1
No 2
QB3. What percentage of your small business clients do you think have a good understanding of their tax and super requirements?
0-9 % 1
10-19% 2
20-29% 3
30-39% 4
40-49% 5
50-59% 6
60-69% 7
70-79% 8
80-89% 9
90-100% 10
Not sure 98
QB4. And what percentage of your small business clients do you think have little understanding of their tax and superannuation requirements?
0-9 % 1
10-19% 2
20-29% 3
30-39% 4
40-49% 5
50-59% 6
60-69% 7
70-79% 8
116
80-89% 9
90-100% 10
Not sure 98
SECTION C: TAX AND SUPER SUPPORT
QC1. Which of the following reasons do you think small business clients come to you for business management or tax and super help? READ OUT.
Multiple Responses allowed
RANDOMISE
Seeking help before they’ve registered their business / before starting their business 1
Seeking help after trying to do things themselves and encountering a tax or super problem 2
Seeking help with tax and super because they don’t have the time 3
Seeking help because they don’t want to do it themselves 4
Seeking help because they don’t know how to do it themselves 5
Seeking assistance when they are in financial trouble 6
Seeking help to change or grow their business 7
Not sure 98
QC2. What are the main tax activities, and other regulatory obligations (eg ASIC, state regulatory bodies) you helped small business clients with in the last year? PROBE: Anything else MULTIPLE RESPONSES
Business Activity Statement (BAS) related 1
GST management 2
Pay as you go (PAYG) withholding 3
Super 4
Fringe Benefits Tax 5
Income and deductions/depreciation information/advice/management 6
Tax preparation 7
117
Annual tax returns 8
PAYG Instalments 9
Tax payments 10
Advising on tax regulations, legal changes, updates 11
General Tax advice 12
Tax audits 13
Company reporting to ASIC 14
Other external audit eg company audit 15
Financial or other regulatory reporting to other regulators 16
General advice/information (non-tax regulations) 17
Other (please specify) 97
Don’t know 98
Refused 99
QC3: Can you please list the kinds of business advice you give? MULTIPLE RESPONSE. PROBE IF REQUIRED
Business planning 1
Business structure 2
Setting up a Trust 3
Staff-related advice 4
Research and Development 5
Product development/getting product IP registered
6
Marketing 7
Business Software 8
Website/online presence/digital strategy 9
Financial management 10
Asset purchases 11
118
Pricing eg costing of jobs, product pricing 12
Cash flow 13
Record keeping: systems, maintenance 14
Selling the business/business exit strategy 15
Other (specify) 97
QC4. In your opinion, what reporting requirement do you find your small business clients have
the most difficulty understanding? INTERVIEWER NOTE: This could be difficult
understanding, or difficulty completing. PROBE: Anything else? MULTIPLE RESPONES
Payroll tax 1
Business Activity Statement (BAS) related 2
Fringe Benefit tax 3
GST management 4
Income and deductions/depreciation 5
Pay as you go (PAYG) 6
Superannuation issues 7
Tax preparation 8
Tax payments 9
Annual tax returns 10
ASIC reporting 11
Self Managed Super Fund 12
Other (please specify) 97
Don’t know/refused 99
QC5a. How regularly would you interact with your typical small business client? Examples of interactions could be email or telephone call – any way in which you communicate with one another.
DO NOT READ OUT PROBE IF REQUIRED
Around once a week 1
119
Around once a month 2
Around Quarterly 3
One or two times a year 4
Once a year 5
I only talk to them at tax time 6
Unsure 98
QC5b
NOTE QUESTION VARIABLES CODE
IF ANSWERED 1 AT QC5a
And in a week, how much time do you think the interaction takes all together?
Less than an hour 1
A few hours 2
Around a day 3
More than a day 4
Not sure 98
IF ANSWERED 2 AT QC5a
And in the month, how much time do you think the interaction takes all together?
Less than an hour 1
A few hours 2
Around a day 3
More than a day 4
Not sure 98
IF ANSWERED 3 AT QC5a
And in that Quarter, how much time do you think the interaction takes all together?
Less than an hour 1
A few hours 2
Around a day 3
More than a day 4
Not sure 98
IF ANSWERED 4 AT QC5a
And in those one or two times, how much time do
Less than an hour 1
A few hours 2
120
you think the interaction takes all together?
Around a day 3
More than a day 4
Not sure 98
IF ANSWERED 5 AT QC5a
And in that instance, how much time do you think that interaction took all together?
Less than an hour 1
A few hours 2
Around a day 3
More than a day 4
Not sure 98
IF ANSWERED 6 AT QC5a
And at tax time, how much time do you think you spend interacting with your typical client all together?
Less than an hour 1
A few hours 2
Around a day 3
More than a day 4
Not sure 98
QC6., What kind of non-tax or super advice do you think your small business clients most need help with?
MULTIPLE RESPONSE PROBE IF NECESSARY
Business planning 1
Business structure 2
Setting up a Trust 3
Staff-related advice 4
Research and Development 5
Product development/getting product IP registered
6
Marketing 7
Business Software 8
Website/online presence/digital strategy 9
Financial management 10
121
Asset purchases 11
Pricing eg costing of jobs, product pricing 12
Cash flow 13
Record keeping: systems, maintenance 14
Selling the business/business exit strategy 15
Other (specify) 97
SECTION D: BUSINESS ADVICE
QD1. Approximately what percentage of your work with small business relates to giving business advice? This is separate to the more transactional kind of tax or super support that most tax professionals provide. SINGLE RESPONSE
Less than 5% 1
6-10% 2
11-20% 3
21-30% 4
31-40% 5
41-50% 6
51-60% 7
61-70% 8
71-80% 9
81-90% 10
91-100% 11
I don’t give this kind of advice 12
Don’t know 98
QD2. In your experience, are small businesses open to the idea of paying tax professionals for business advice?
Yes 1
No 2
122
A mix of both 3
Not sure 98
QD3: Why do you think clients may not be not open to getting business advice from tax professionals?
They find it expensive 1
They don’t see tax professionals as business advisors 2
They have other ways of getting business advice 3
They think they know better 4
They don’t think of it 5
Other (specify) 97
Don’t know 98
QD4: If you could get your small business clients to take up one piece of business advice, what
would it be? OE
SECTION E: BUSINESS SYSTEMS
QE1. When it comes to tax and super, what is the main way your small business clients keep
track of their records?
SINGLE RESPONSE PROBE IF REQUIRED
Accounting software; eg MYOB, XERO, Intuit, QuickBooks 1
Spreadsheets; eg Excel 2
Paper-based; eg box of receipts 3
Payroll software 4
Other (specify) 97
123
QE2. And what percentage of your small business clients do you think would use (insert option
selected in QE1) ?
SINGLE RESPONSE
Less than 5% 1
6-10% 2
11-20% 3
21-30% 4
31-40% 5
41-50% 6
51-60% 7
61-70% 8
71-80% 9
81-90% 10
91-100% 11
Don’t know 98
QE3. What do you think would be the second most used way your clients keep track of their
records?
SINGLE RESPONSE PROBE IF REQUIRED
Accounting software; eg MYOB, XERO, Intuit, QuickBooks 1
Spreadsheets; eg Excel 2
Paper-based; eg box of receipts 3
Payroll software 4
Not sure 98 SKIP TO QE5
Other (specify) 97
ASK ONLY IF ANSWERED 1,2,3 or 4 at QE3
124
QE4. And what percentage of your clients do you think would use (insert option(s) selected in
QE3)?
SINGLE RESPONSE
Less than 5% 1
6-10% 2
11-20% 3
21-30% 4
31-40% 5
41-50% 6
51-60% 7
61-70% 8
71-80% 9
81-90% 10
91-100% 11
Don’t know 98
QE5. Do you recommend a particular accounting software to your small business clients? If so,
what is it?
MYOB 1
QuickBooks 2
Xero 3
Intuit 4
Reckon 5
Other (specify) 97
I don’t recommend specific software 6
125
SECTION F: INFLUENCERS
QF1. Based on your own observations of small businesses, what are some of the main ways
they get advice about running, managing or developing their businesses?
PROBE: ANYWHERE ELSE? DO NOT READ OUT. MULTIPLE RESPONSE
Australian Taxation Office (ATO) 1
State government business websites 2
Business.gov.au (in Department of Industry, Innovation and Science) 3
Accountant 4
Bookkeeper 5
Tax agent 6
BAS agent 7
Other businesses 8
Business partner 9
Family, friends 10
Business/industry associations 11
126
Course, training program/seminar 12
Books, guides, leaflets 13
Online business/industry forums 14
Internet/Google search 15
Superannuation company 16
Mentor 17
Bank/Financial Planner 18
Previous experience/knowledge 19
Small Business Commissioner 22
Existing clients gdftgf
23
Not sure 98
Other (please specify) 97
Nowhere 99
127
SECTION G: ASSOCIATIONS
QG1: For this next question, I’m going to read out some statements. Using a scale of 1 to 5, where 1 is strongly disagree and 5 is strongly agree, how much do you agree or disagree with the following statements?
[INTERVIEWER PROMPT IF NECESSARY: 1 means strongly disagree and 5 means strongly
agree]
READ OUT. RANDOMISE ORDER
Strongly Disagree Disagree
Neither agree nor disagree Agree Strongly
agree DK N/A
a) My clients would prefer to contact me before contacting the ATO themselves.
1 2 3 4 5 99 98
b) I feel that the ATO listens to the needs of small business
1 2 3 4 5 99 98
c) Small businesses need the ATO more when first starting out.
1 2 3 4 5 99 98
d) The ATO is more about compliance than helping small business
1 2 3 4 5 99 98
e) The ATO is never going to help small businesses save money
1 2 3 4 5 99 98
f) The ATO does not do enough to support small businesses when first starting up.
1 2 3 4 5 99 98
128
SECTION H: CLOSE
Thank you very much for your participation in our survey. Just to confirm, all the answers
you provided are treated in the strictest confidence and will be aggregated with other
people’s answers for analysis. They will not be passed on to anyone or anywhere else.
In case my supervisor needs to contact you to check the validity of this interview, could I
please confirm some details?
RESPONDENT’S FIRST NAME: ____________________
PHONE: _______________________________________
COMPANY NAME: _______________________________
As a Market Research company, we comply with the requirements of the Privacy Act.
Would you like me to read out the details of how Ipsos complies with the Privacy Act
(again)?
In accordance with the Privacy Act, once information processing has been completed, 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 that your name and contact details remain with your survey
responses, which will be approximately 2 to 4 weeks, you will be able to contact us to
request that some or all of your information be deleted.
Thank you for your time.
129
Tables
10.2.1 Small business survey
2015 2017
Less than one year 2% 2%
1 - 2 years 4% 3%
3 - 5 years 9% 10%
6 - 10 years 11% 17%
11 - 20 years 29% 34%
21 years + 45% 34%
Total 800 800
Table 1. SC1. How long have you been involved in managing the bus iness administration of this (or other)
businesses? by Year. Total sample Base n = 800 (2015)/800 (2017).
2015 2017
Sydney 8% 8%
NSW - other 11% 11%
Melbourne 9% 12%
VIC - other 10% 7%
Brisbane 4% 4%
QLD - other 8% 9%
Perth 8% 7%
WA - other 5% 6%
Adelaide 8% 5%
SA - other 4% 7%
TAS 9% 9%
NT 9% 9%
ACT 6% 6%
Total 800 800
Table 2. SC2. Where is your main business location? by Year Total sample Base n = 800 (2015)/800 (2017).
130
2015 2017
Less than $75,000 19% 28%
$75,000 - $2 million 81% 73%
Total 800 800
Table 3. SC3. What was your approximate turnover for the financial year 2015 -2016? by Year
Total sample. Total sample Base n = 800 (2015)/800 (2017).
2015 2017
Sole trader 17% 29%
Partnership 13% 14%
Company 56% 47%
Trust 16% 15%
Total 800 800
Table 4. SC4. Is your business set up as a by Year. Multiple responses allowed Total sample Base n = 800 (2015)/800 (2017).
2015 2017
0 17% 26%
1-5 employees 65% 57%
6-10 employees 13% 13%
11-20 employees 4% 4%
More than 20 employees 1% 1%
Total 667 580
Table 5. SC5. How many people are currently employed in your business, not including contractors, volunteer staff or yourself? by Year. Base n=667 (2015)/580 (2017)
2015 2017
Yes 96% 90%
No 4% 9%
Don’t know 0% 1%
Total 800 800
Table 6. SC6. Is your business registered for GST? by Year Total sample; Total sample Base n = 800 (2015)/800 (2017).
131
2015 2017
Agriculture, Forestry and Fishing 5% 5%
Mining 2% 2%
Manufacturing 10% 10%
Electricity, Gas, Water and Waste Services 2% 2%
Construction 8% 8%
Wholesale Trade 2% 2%
Retail Trade 25% 25%
Accommodation and Food Services 5% 5%
Transport, Postal and Warehousing 3% 3%
Information Media and Telecommunications 3% 3%
Financial and Insurance Services 5% 5%
Rental, Hiring and Real Estate Services 3% 3%
Professional, Scientific and Technical Services 9% 9%
Administrative and Support Services 1% 1%
Public Administration and Safety 0% 0%
Education and Training 3% 3%
Health Care and Social Assistance 4% 4%
Arts and Recreation Services 7% 7%
Other Services 6% 1%
Other (please specify) 0% 2%
Unsure 0% 0%
Total 800 800
Table 7. SC7. And can I confirm that your main business is in the […] industry? by Year Total sample Base n = 800 (2015)/800 (2017).
2015 2017
My business is in the early stages (start-up phase) 4% 7%
The business is established 61% 65%
The business is about to go through major changes (e.g. expanding, downsizing, changing direction)
14% 13%
I am considering exiting the business (e.g. sell ing, closing, transferring ownership) 22% 15%
Don’t know 0% 1%
Prefer not to answer 0% 0%
Total 800 800
Table 8. SC8. Which of the following best represents the stage your main business is currently in? by Year Total sample Base n = 800 (2015)/800 (2017).
132
2015 2017
Less than one year 1% 2%
1 - 2 years 2% 5%
3 - 5 years 5% 10%
6 -10 years 7% 16%
11 – 20 years 29% 30%
21 years + 56% 37%
Total 800 800
Table 9. SC9. How long has your main business been in operation? by Year Total sample Base n = 800 (2015)/800 (2017).
%
Yes 4%
No 96%
Total 800
Table 10. SC10. Is your business 50% or more indigenous owned? Note: All DK’s inclusive in the ‘No’ response (2%) New Question. Total sample; base n = 800 (2017).
2015 2017
University degree or diploma 28% 27%
Full-time TAFE course 16% 10%
Short courses at TAFE or other private institutions 30% 28%
Industry course 34% 26%
Chartered Accountant (CA) or Certified Practicing Accountant (CPA) qualification 6% 6%
On the job training as an administrator*
45%
None of the above 38% 26%
Prefer not to say 1% 0%
Total 800 800
Table 11. QSC11 Have you undertaken any of the following types of training in business management or administration? *indicates a new code frame in 2017. By Year. Total sample. Base n = 800 (2015)/800 (2017).
133
2015 2017
1 Extremely negative 7% 7%
2 15% 12%
3 32% 32%
4 31% 31%
5 Extremely positive 14% 19%
DK 0% 0%
N/A 0% 0%
Total 800 800
Table 12. QB1. Using a scale of 1 to 5, where 1 is extremely negative and 5 is extremely positive, How positive or negative would you say you are currently feeling about how your business is performing at the
moment. By Year. Total sample. Base n = 800 (2015)/800 (2017).
Column % 2015 2017
1 Extremely negative 6% 6%
2 12% 9%
3 28% 29%
4 32% 32%
5 Extremely positive 17% 24%
DK 2% 1%
N/A 3% 0%
Total 800 800
Table 13. QB2. And using the same scale of one to five, how are you feeling about the future of your
business, in say 12 months from now? By Year. Total sample. Base n = 800 (2015)/800 (2017).
%
I have systems that are efficient and effective 28%
I have systems that work for me, but they could probably be better 44%
I have a few basic systems, but mostly deal with things as they come up 16%
I work with systems that were developed by someone else 12%
Total 800
Table 14. QB3. In your opinion, which of the following statements would you say best represents your business administration systems New Question. Base n = 800 (2017)
134
2015 2017
Accountant 25% 39%
Nowhere 28% 16%
Previous experience/knowledge 17% 15%
Family, friends 12% 13%
Business/industry associations 13% 12%
Other businesses 10% 8%
Internet/Google search 2% 7%
Course, training program/seminar 4% 6%
Business partner 3% 4%
Australian Taxation Office (ATO) 1% 4%
Other (please specify) 5% 3%
Mentor 3% 2%
Bookkeeper 0% 2%
State government business websites 3% 2%
Business.gov.au (in Department of Industry, Innovation and Science) 1% 2%
Bank/Financial Planner 4% 2%
Online business/industry forums 1% 1%
Tax agent 0% 1%
Books, guides, leaflets 0% 1%
Small Business Commissioner 0% 1%
Existing clients
1%
Total 800 800
Table 15. QB4 Thinking about when you first started your current business, where did you go for advice or
information on these issues? Multiple responses allowed. Note: Where 0% in both 2015 and 2017, these have been deleted in the table. By Year. Total sample. Base n = 800 (2015)/800 (2017).
135
2015 2017
Before you started the business 40% 42%
As soon as the business started operating 39% 33%
When your accountant/tax professional brought it to your attention 11% 13%
When you received/wrote your first invoice 1% 1%
When it was time to lodge your first business tax return 5% 4%
Reached GST ($75k) 1% 1%
I haven’t started thinking about business tax requirements yet 0% 0%
When I got a compliance warning 0% 1%
When a friend/family brought it up 0% 1%
Other specify 0% 3%
Can’t remember 4% 2%
Total 800 800
Table 16. QB5. When did you first start thinking about your business tax requirements? Would it be… By Year. Total sample. Base n = 800 (2015)/800 (2017).
2015 2017
1 Not at all confident 4% 4%
2 5% 7%
3 16% 18%
4 31% 34%
5 Very confident 42% 37%
DK 1% 0%
N/A 1% 0%
Total 800 800
Table 17. QB6. How confident are you in managing your business tax requirements? By Year. Total sample. Base n = 800 (2015)/800 (2017).
2015 2017
Yes 74% 83%
No, not at all 26% 14%
Not yet, but might 0% 3%
Can’t remember 0% 0%
Total 800 800
Table 18. QB8. Have you ever sought advice or looked for information about business tax requirements? By Year. Total sample. Base n = 800 (2015)/800 (2017).
136
2015 2017
Accountant 80% 76%
ATO Website 10% 11%
Bookkeeper 2% 2%
Australian Taxation Office (ATO) phone 1% 2%
Google search 1% 2%
Tax agent 1% 2%
Other (please specify) 0% 1%
Other government departments 1% 1%
Family, friends 0% 1%
Course, training program/seminar 1% 0%
Business.gov.au 0% 0%
Business partner 0% 0%
Business/industry associations 1% 0%
Australian Taxation Office (ATO) service centre 1% 0%
Other businesses 0% 0%
Books, guides, leaflets 1% 0%
Nowhere 0% 0%
BAS agent 0% 0%
Online business/industry forums 0% 0%
Superannuation company 0% 0%
Mentor 0% 0%
Total 588 663
Table 19. QB9a. When you were looking for this business tax advice or information, where did you go first? By Year. Total sample. Base n = 588 (2015)/663 (2017).
137
2015 2017
No other 63% 53%
ATO Website 11% 15%
Accountant 8% 12%
Australian Taxation Office (ATO) phone 4% 9%
Other (please specify) 3% 4%
Google search 4% 4%
Bookkeeper 2% 3%
Business/industry associations 2% 3%
Family, friends 1% 2%
Other government departments 2% 2%
Australian Taxation Office (ATO) service centre 1% 1%
Business.gov.au 0% 1%
Course, training program/seminar 2% 1%
Online business/industry forums 1% 1%
Tax agent 0% 1%
Other businesses 2% 1%
Books, guides, leaflets 1% 1%
Business partner 0% 1%
Mentor 0% 0%
BAS agent 0% 0%
Superannuation company 0% 0%
Total 588 662
Table 20. QB9b. Anywhere else? by Year. Multiple responses allowed. By Year. Total sample. Base n = 588 (2015)/662 (2017).
%
I do it all myself 16%
I do some of it myself, but also pay a professional to help me 62%
I pay a professional to do all of it 23%
Total 800
Table 21. SC11. Which of the following would best describe how you go about fulfi l ling your business’s tax
and super requirements? New Question. Total sample; base n = 800 (2017)
138
2017
Accountant 95 %
Business Advisor 7%
Bookkeeper 30%
BAS agents 8%
Tax agents 15%
Other (specify) 2%
Total 674
Table 22. SC13 You mentioned earlier that you pay for professional help with your tax and super. Which of the following professionals do you use? New question. Base n = 674 (2017)
Total 2015 2017
Annual tax returns 68% 74%
Business Activity Statement (BAS) related 39% 40%
General advice/information 9% 14%
Superannuation 4% 13%
Tax preparation 5% 12%
GST management 9% 11%
Tax advice 4% 11%
Record keeping: systems, maintenance 8% 10%
Tax payments 5% 10%
Other (please specify) 2% 6%
Business structure/Business Planning 3% 6%
Income and deductions/depreciation information/advice/management 8% 6%
Pay as you go (PAYG) 5% 5%
Advising on tax regulations, legal changes, updates 4% 5%
Don’t know 1% 1%
Total 800 674
Table 23. QC1. What is the main business tax activity you used them for within the last year By Year. Total sample. Base n = 800 (2015)/674 (2017).
139
2017
Around once a week 12%
Around once a month 23%
Around Quarterly 37%
One or two times a year 17%
Once a year 8%
I only talk to him/her at tax time 3%
Unsure 1%
Total 674
Table 24. QC1a. Apart from the lead up to tax time how regularly do you think you interact with your [ tax professional, SC13]? New Question. Total sample. Base n=800 (2017).
2015 2017
Have the tax knowledge/expertise 72% 61%
Keeps me out of trouble/meets my obligations*
26%
Doing the right thing*
25%
Saves me time 13% 15%
Familiarity with the ATO and the way they work 19% 13%
Not having to do it myself 14% 12%
Trust/confidence 6% 10%
Knows my business 3% 9%
Personalised service 1% 5%
Financial benefits or saves me money 4% 3%
Reliable 5% 3%
Other (please specify) 4% 3%
On my side/work for me 2% 2%
Easy to get hold of/access 2% 2%
Don’t know 3% 2%
Cost effective 4% 2%
Habit 0% 0%
Total 755 674
Table 25. QC2 What benefits are there to using your [Tax professional, SC13]? Anything else? Note: *
indicates new code frame in 2017. Multiple responses allowed. by Year Total sample. Base n = 755 (2015)674 (2017).
140
2017
1 Not reliant at all 2%
2 7%
3 19%
4 31%
5 Extremely reliant 40%
DK 0%
N/A 0%
Total 674
Table 26. QC3. Using a scale of 1-5, where 1 is not reliant at all and 5 is extremely reliant, to what extent do you think you rely on your [tax professional, SC13] to manage your tax and super affairs? New question. Total sample; base n = 674 (2017)
%
1 Not reliant at all 17%
2 19%
3 27%
4 22%
5 Extremely reliant 15%
DK 0%
N/A 0%
Total 674
Table 27. QC4. Using the same scale of 1-5, where 1 is not reliant at all and 5 is extremely reliant, to what
extent do you think you rely on your [tax professional, SC13] to give you other types of business advice? New question. Total sample; base n = 674 (2017)
2017
Yes 36%
No 63%
Not sure 1%
Total 674
Table 28. QC5. Are there any negative aspects of using an accountant or bookkeeper? New question. Total sample; base n = 674 (2017)
141
2017
Expense involved 78%
Not sure if they’re needed 1%
Poor service 11%
Hard to get a new one because they know my system 0%
Old-fashioned 1%
Other (specify) 1%
Hard to find a good one 1%
Makes error / miscommunication 5%
They are risk averse, not creative nor proactive / don't take responsibility 3%
They don't know my business 2%
Availability 3%
Trust issue 3%
Prefer not to answer 0%
Total 244
Table 29. QC6. What do these negative aspects include? New question. Total sample; base n = 244 (2017)
2015 2017
Business Activity Statement (BAS) related 26% 31%
I have not interacted with the ATO in the last year 22% 18%
Annual tax returns 10% 16%
Tax payments 14% 12%
Payment arrangements (for debt) 6% 9%
I dont interact with the ATO at all 8% 9%
General advice/information 7% 8%
GST management 9% 7%
Pay as you go (PAYG) 8% 5%
Superannuation 1% 5%
Other (please specify) 0% 5%
Needing to change/update details 2% 4%
Advising on/questions about regulations, legal changes, updates
4% 4%
Arranging payment extensions 3% 3%
Error in tax return 2% 3%
Tax advice 1% 2%
142
When didn’t understand something 1% 2%
Income and deductions information/advice/management 2% 2%
Business structure 1% 1%
Tax preparation 2% 1%
Don’t know/refused 1% 1%
Record keeping: systems, maintenance 2% 0%
Total 800 800
Table 30. QD1. Within the last year, what are the reasons you would generally interact with the ATO for? Multiple responses allowed. PROBE: Anything else? By Year. Total sample. Base n = 800 (2015)/800 (2017).
2015 ATO Tax professional Both Neither Not sure
Trusted 4% 33% 56% 6% 2%
Reliable 5% 33% 55% 5% 2%
Efficient 6% 37% 46% 9% 3%
Capable 3% 34% 58% 2% 3%
Knowledgeable 4% 35% 56% 3% 3%
Cost effective 12% 31% 30% 22% 5%
Consistent 5% 31% 54% 7% 3%
Accessible 3% 42% 49% 4% 2%
Approachable 4% 41% 52% 2% 1%
2017 ATO Tax professional Both Neither Not sure
Trusted 3% 23% 67% 5% 2%
Reliable 5% 25% 65% 4% 1%
Efficient 4% 32% 54% 8% 2%
Capable 3% 27% 66% 2% 2%
Knowledgeable 4% 26% 66% 2% 2%
Cost effective 9% 27% 38% 21% 5%
Consistent 5% 23% 64% 5% 3%
Accessible 4% 34% 54% 6% 2%
Approachable 3% 35% 56% 4% 2%
Supportive* 4% 36% 49% 9% 3%
Honest* 4% 19% 72% 3% 2%
Table 31. QE1. Tell me if that word best represents the ATO and/or a Tax Professional or neither . Note: * indicates option only available in 2017. Total sample; Unweighted; base n = 800(2015)/800(2017)
143
Row % 2015
Strongly disagree
Disagree Neither agree nor disagree
Agree Strongly agree
DK N/A
I have no idea what the ATO could do to help my business 14% 20% 19% 27% 18% 3% 1%
I’m the kind of person that wi l l proactively seek out all the information I need about tax. 7% 16% 18% 35% 25% 0% 0%
I’l l deal with business taxation issues only when needed 8% 13% 13% 38% 27% 1% 0%
I’d l ike to understand my business’ tax requirements and obligations better 7% 16% 23% 33% 19% 1% 1%
I want personalised service when dealing with
my business tax requirements 3% 5% 10% 38% 41% 2% 1%
I’d prefer the ATO to contact me directly when there have been changes to tax 12% 20% 16% 25% 26% 1% 1%
Row % 2017
Strongly disagree
Disagree Neither agree nor
disagree
Agree Strongly
agree
DK N/A
I have no idea what the ATO could do to help my business 17% 14% 25% 16% 25% 2% 0%
I’m the kind of person that will proactively
seek out all the information I need about tax. 9% 11% 23% 24% 33% 0% 0%
I’l l deal with business taxation issues only when needed 9% 10% 17% 28% 34% 1% 0%
I’d l ike to understand my business’ tax requirements and obligations better 9% 12% 27% 24% 28% 1% 0%
I want personalised service when dealing with my business tax requirements 4% 6% 15% 24% 50% 1% 0%
I’d prefer the ATO to contact me directly when there have been changes to tax 16% 14% 20% 17% 32% 1% 0%
Table 32. QF1. How much do you agree or disagree with the following statements
By Year. Total sample. Base n = 800 (2015)/800 (2017).
144
Row %
2015
Strongly
disagree
Disagre
e
Neither
agree nor disagree
Agre
e
Strongly
agree
DK N/
A
Dealing with the ATO is simple 16% 25% 25% 22% 5% 6% 2%
I would prefer to contact a tax professional before contacting the ATO if I need help with my
tax 3% 5% 8% 39% 44% 1% 1%
I feel that the ATO listens to the needs of small business 17% 23% 26% 17% 5%
11% 1%
The ATO are not on my side 13% 31% 26% 14% 10% 5% 1%
I needed the ATO more when I first started the business than I do now 13% 32% 18% 19% 9% 4% 4%
The ATO gives me the right information to meet my needs 6% 11% 21% 39% 13% 8% 3%
The ATO is more about
compliance than helping small businesses 4% 12% 20% 34% 24% 5% 1%
The ATO is never going to help you save money 9% 23% 21% 20% 19% 7% 1%
The ATO does not do enough to support new businesses when
they are first setting up 7% 17% 22% 16% 13%
20
% 5%
I’d prefer to have nothing much to do with the ATO 9% 25% 23% 24% 17% 2% 1%
145
Row %
2017
Strongly
disagree
Disagre
e
Neither
agree nor disagree
Agre
e
Strongly
agree
DK N/
A
Dealing with the ATO is simple 19% 18% 24% 20% 14% 3% 1%
I would prefer to contact a tax professional before contacting the ATO if I need help with my
tax 6% 7% 8% 23% 57% 0% 0%
I feel that the ATO listens to the needs of small business 16% 19% 33% 18% 9% 4% 1%
The ATO are not on my side 23% 23% 30% 11% 11% 1% 1%
I needed the ATO more when I first started the business than I do now 19% 22% 27% 15% 15% 1% 2%
The ATO gives me the right information to meet my needs 6% 8% 28% 31% 23% 3% 2%
The ATO is more about
compliance than helping small businesses 5% 11% 22% 27% 32% 3% 1%
The ATO is never going to help you save money 13% 19% 30% 13% 21% 3% 1%
The ATO does not do enough to support new businesses when
they are first setting up 11% 17% 30% 14% 17% 9% 2%
I’d prefer to have nothing much to do with the ATO 14% 18% 32% 15% 20% 0% 1%
Table 33. QF2. How much do you agree or disagree with the following statements about the ATO Total sample; Unweighted; base n = 800(2015)/800(2017)
2015 2017
1 Very dissatisfied 8% 7%
2 11% 11%
3 37% 37%
4 28% 30%
5 Very satisfied 9% 12%
DK 6% 3%
N/A 2% 1%
Total 800 800
Table 34. QG1. Overall, how satisfied or dissatisfied are you with the ATO’s ability to provide advice, support and information for your business? By Year. Total sample. Base n = 800 (2015)/800 (2017).
146
147
10.2.2 Tax professionals survey
%
Less than one year 0%
1 – 2 years 3%
3 – 5 years 10%
6 – 10 years 21%
11 – 20 years 20%
21 years + 46%
Don’t know/can’t remember 0%
Prefer not to say 0%
Total 120
Table 35. SC1. How long have you worked as a tax professional? Total sample; Unweighted; base n = 120
%
Sydney metro 20%
NSW – other 10%
Melbourne metro 18%
VIC – other 8%
Brisbane metro 7%
QLD – other 13%
Perth metro 5%
WA – other 5%
Adelaide metro 5%
SA – other 3%
TAS 4%
NT 0%
ACT 3%
Total 120
Table 36. SC2 And where are the majority of your small business clients located? Total sample; Unweighted; base n = 120
148
%
Sydney metro 8%
NSW – other 14%
Melbourne metro 6%
VIC – other 7%
Brisbane metro 8%
QLD – other 18%
Perth metro 3%
WA – other 4%
Adelaide metro 0%
SA – other 3%
TAS 2%
NT 1%
ACT 1%
No other 23%
Not sure 3%
Total 120
Table 37. SC2b. And after that location, where would the next largest client base be? Total sample; Unweighted; base n = 120
Unsure/Couldn’t say 29%
Construction 22%
Agriculture, Forestry and Fishing 13%
Retail Trade 8%
Accommodation and Food Services 8%
Professional, Scientific and Technical Services 7%
Manufacturing 3%
Transport, Postal and Warehousing 3%
Health Care and Social Assistance 3%
Wholesale Trade 2%
Other Services 2%
Mining 1%
Administrative and Support Services 1%
Arts and Recreation Services 1%
Total 120
Table 38. QB1. What industry would most of your small business clients come from?
Total sample; Unweighted; base n = 120
149
%
Retail Trade 24%
Construction 23%
Professional, Scientific and Technical Services 10%
None 7%
Transport, Postal and Warehousing 6%
Other Services 5%
Accommodation and Food Services 5%
Wholesale Trade 4%
Health Care and Social Assistance 4%
Rental, Hiring and Real Estate Services 4%
Financial and Insurance Services 2%
Agriculture, Forestry and Fishing 2%
Manufacturing 2%
Information Media and Telecommunications 1%
Mining 1%
Administrative and Support Services 1%
Other (please specify) 0%
Electricity, Gas, Water and Waste Services 0%
Public Administration and Safety 0%
Education and Training 0%
Arts and Recreation Services 0%
Total 84
Table 39. QB1b. And after that, what industry do you think the second biggest portion might come from? Total sample; Unweighted; base n = 84 (only asked to those who answered at QB1)
%
Yes 43%
No 57%
Total 120
Table 40. QB2. Do you consider yourself a specialist for this/these particular industries? Total sample; Unweighted; base n = 120
150
%
0-9 % 3%
10-19% 3%
20-29% 8%
30-39% 1%
40-49% 6%
50-59% 13%
60-69% 9%
70-79% 18%
80-89% 15%
90-100% 25%
Not sure 0%
Total 120
Table 41. QB3. What percentage of your small business clients do you think have a good understanding of their tax and super requirements? Total sample; Unweighted; base n = 120
%
0-9% 28%
10-19% 28%
20-29% 18%
30-39% 8%
40-49% 5%
50-59% 7%
60-69% 3%
70-79% 2%
80-89% 2%
90-100% 0%
Not sure 1%
Total 120
Table 42. QB4. And what percentage of your small business clients do you think have little understanding
of their tax and superannuation requirements? Total sample; Unweighted; base n = 120
151
%
Seeking help because they don’t know how to do it themselves 97%
Seeking help with tax and super because they don’t have the time 93%
Seeking help because they don’t want to do it themselves 88%
Seeking help before they’ve registered their busines s / before starting their business 87%
Seeking help to change or grow their business 83%
Seeking help after trying to do things themselves and encountering a tax or super problem 79%
Seeking assistance when they are in financial trouble 73%
Not sure 1%
Total 120
Table 43. QC1 Which of the following reasons do you think small business clients come to you for business management or tax and super help? Total sample; Unweighted; base n = 120
Annual tax returns 68%
Business Activity Statement (BAS) related 57%
Super 33%
GST management 23%
Company reporting to ASIC 19%
General Tax advice 17%
Tax preparation 14%
Tax payments 13%
Pay as you go (PAYG) withholding 9%
Financial or other regulatory reporting to other regulators 8%
Fringe Benefits Tax 7%
PAYG Instalments 6%
Other (please specify) 6%
Advising on tax regulations, legal changes, updates 5%
General advice/information (non-tax regulations) 5%
Income and deductions/depreciation information/advice/management 3%
Tax audits 3%
Other external audit eg company audit 0%
Don’t know 0%
Refused 0%
Total 120
152
Table 44. QC2 What are the main tax activities, and other regulatory obligations (eg ASIC, state regulatory bodies) you helped small businesses with last year? Total sample; Unweighted; base n = 120
%
Business structure 36%
Business planning 30%
Cash flow 28%
Financial management 25%
None N/A 19%
Other (specify) 13%
Record keeping: systems, maintenance 13%
Staff-related advice 8%
Asset purchases 7%
Pricing eg costing of jobs, product pricing 7%
Tax related 6%
Setting up a Trust 5%
Research and Development 5%
Business Software 4%
Financial reporting/forecasting 4%
Marketing 3%
Growth/Business planning 3%
Selling the business/business exit strategy 3%
Tax planning 3%
Product development/getting product IP registered 1%
Website/online presence/digital strategy 1%
Property 1%
Total 120
Table 45. QC3. Can you please list the kinds of business advice you give? Multiple responses allowed. Total sample; Unweighted; base n = 120
%
Business Activity Statement (BAS) related 28%
Annual tax returns 27%
Superannuation issues 17%
Financial reporting/modelling 13%
GST management 13%
Other (please specify) 11%
153
Income and deductions/depreciation information/advice/management 8%
Pay as you go (PAYG) 8%
Tax preparation 8%
Tax payments 8%
Payroll tax 7%
Staff issues/Payroll 7%
Don’t know/refused 5%
Legislation/Compliance 4%
Cash Flow 4%
Fringe Benefit tax 3%
ASIC reporting 3%
Capital Gains Tax 3%
Self Managed Super Fund 2%
Total 120
Table 46. QC4. In your opinion, what reporting requirement do you find your small business clients have the most difficulty understanding. Multiple responses allowed. Total sample; Unweighted; base n = 120
%
Around once a week 13%
Around once a month 36%
Around Quarterly 46%
One or two times a year 3%
Once a year 3%
I only talk to them at tax time 0%
Unsure 0%
Total 120
Table 47. QC5a. How regularly would you interact with your typical small business client? Total sample; Unweighted; base n = 120
%
Less than an hour 53%
A few hours 33%
Around a day 6%
More than a day 4%
Not sure 3%
Total 120
Table 48. QC5b. And in that [time period], how much time do you think the interaction takes all together?
Total sample; Unweighted; base n = 120
154
Cash flow 25%
Financial management 23%
Business planning 17%
Record keeping: systems, maintenance 17%
Not sure/Don't know 14%
Staff-related advice 11%
Business structure 6%
Other (specify) 5%
Compliance 5%
Research and Development 3%
Marketing 3%
Asset purchases 3%
Product development/getting product IP registered 1%
Business Software 1%
Pricing e.g. costing of jobs, product pricing 1%
Selling the business/business exit strategy 1%
Table 9. QC6. What kind of non-tax or super advice do you think your small busines s clients most need help with? Multiple responses allowed. Total sample; Unweighted; base n = 120
%
Less than 5% 9%
6-10% 15%
11-20% 28%
21-30% 17%
31-40% 12%
41-50% 6%
51-60% 2%
61-70% 0%
71-80% 1%
81-90% 1%
91-100% 1%
I don’t give this kind of advice 8%
Don’t know 3%
Total 120
Table 50. QD1. Approximately what percentage of your work with small business relates to giving
business advice? This is separate to the more transactional kind of tax or super support that most tax
155
professionals provide. Total sample; Unweighted; base n = 120
%
Yes 78%
No 13%
A mix of both 9%
Not sure 1%
Total 120
Table 51 QD2. In your experience, are small businesses open to the idea of paying tax professionals for business advice?
Total sample; Unweighted; base n = 120
Expensive 48%
Think they know better 14%
Don’t see TPs as business advisors 13%
Don’t know 6%
They have other ways of getting business advice 5%
Other (specify) 5%
Lack of trust 4%
They don’t think of it 3%
Don't value it 2%
Total 120
Table 5244. QD3. Why do you think clients may not be not open to getting business advice from tax professionals?Total sample; Unweighted; base n = 120
%
Cash Flow 23%
Regular review of profits/Record keeping 22%
Better time keeping 21%
Business growth 18%
Improved systems 17%
N/A: Not sure 5%
Get professional advice 4%
Other 0%
Total 120
Table 45. QD4. If you could get your small business clients to take up one piece of business advice, what would it be Total sample; Unweighted; base n = 120
156
%
Accounting software; eg MYOB, XERO, Intuit, QuickBooks 75%
Paper-based; eg box of receipts 10%
Spreadsheets; eg Excel 9%
Bank Statements/transactions 5%
Other (specify) 1%
Payroll software 0%
Total 120
Table 46. QE1. When it comes to tax and super, what is the main way your small business clients keep track of their records? Total sample; Unweighted; base n = 120
%
Less than 5% 0%
6-10% 1%
11-20% 4%
21-30% 2%
31-40% 3%
41-50% 12%
51-60% 8%
61-70% 10%
71-80% 23%
81-90% 18%
91-100% 21%
Don’t know 0%
Total 120
Table 47. QE2. And what percentage of your small business clients do you think would use [QE1]? Total sample; Unweighted; base n = 120
%
Accounting software; eg MYOB, XERO, Intuit, QuickBooks 14%
Spreadsheets; eg Excel 45%
Paper-based; eg box of receipts 34%
Payroll software 0%
Other (specify) 3%
Not sure 3%
Column n 120
Table 48. QE3. What do you think would be the second most used way your clients keep track of their records? Total sample; Unweighted; base n = 120
157
%
Less than 5% 22%
6-10% 15%
11-20% 19%
21-30% 21%
31-40% 4%
41-50% 11%
51-60% 2%
61-70% 1%
71-80% 2%
81-90% 1%
91-100% 2%
I don’t give this kind of advice 0%
Don’t know 0%
Column n 112
Table 49. QE4. And what percentage of your clients do you think would use [QE3]? Total sample; Unweighted; base n = 112
%
I don’t recommend specific software 36%
MYOB 29%
Xero 23%
Reckon 4%
QuickBooks 3%
Cash flow manager 3%
Intuit 1%
Handy 1%
Microtax 1%
Sage One 1%
Other (specify) 0%
Column n 120
Table 50. QE5. Do you recommend a particular accounting software to your small business clients? If so, what is it? Total sample; Unweighted; base n = 120
158
Accountant 71%
Family, friends 30%
Business/industry associations 25%
Internet/Google search 17%
Bank/Financial Planner 13%
Other businesses 7%
Australian Taxation Office (ATO) 6%
Course, training program/seminar 5%
Bookkeeper 4%
Books, guides, leaflets 4%
Previous experience/knowledge 4%
Nowhere 3%
Tax agent 3%
Online business/industry forums 3%
Mentor 3%
Other (please specify) 3%
State government business websites 2%
Business partner 2%
Small Business Commissioner 2%
Not sure 2%
Superannuation company 1%
Business.gov.au (in Department of Industry, Innovation and Science) 0%
BAS agent 0%
Existing clients 0%
Column n 120
Table 51. QF1. Based on your own observations of small businesses, what are some of the main ways they get advice about running, managi ng their business? Multiple responses allowed. Total sample; Unweighted; base n = 120
159
Row % 1 -
Strongly disagree
2 -
Disagree
3 -
Neither agree nor disagre
e
4 -
Agree
5 -
Strongly agree
N/A Do
n’t know
My clients would prefer to contact me before contacting the ATO themselves
3% 1% 2% 19% 75% 0% 0%
I feel that the ATO listens to the needs of small business
11% 13% 38% 28% 8% 0% 1%
Small businesses need the ATO more when
first starting out
10% 22% 25% 25% 18% 0% 1%
The ATO is more about compliance than helping small businesses
2% 8% 32% 28% 31% 0% 0%
The ATO is never going to help small businesses save money
16% 23% 28% 15% 17% 1% 1%
The ATO does not do enough to support new businesses when they are first setting up
12% 30% 33% 16% 8% 0% 2%
Table 52. QG1. How much do you agree or disagree with the following statements - X
Total sample; Unweighted; base n = 120 Frequency of interaction by tier
Column % Medium Small High Bulk PT Focussed
Around once a week 10% 17% 29% 0%
Around once a month 36% 35% 29% 45%
Around Quarterly 50% 40% 43% 55%
One or two times a year 2% 4% 0% 0%
Once a year 2% 4% 0% 0%
I only talk to them at tax time 0% 0% 0% 0%
Unsure 0% 0% 0% 0%
Total 50 52 7 11
Table 53. QC5a. How regularly would you interact with your typical small business client? Total sample; Unweighted; base n = 120
