Entity flow-through (EFT) Submission 
 
Small and medium-sized enterprises (SMEs) constantly identify the complexity of the taxation system, and the cost of 
compliance associated with it, as one of their main causes of concern. This is despite the various concessions in the 
tax legislation that seek to reduce the complexity of the taxation system for this sector. 
 
One option identified as potentially reducing the complexity and costs of the taxation system for SMEs is the adoption 
of a 'flow-through' system of taxation for commonly used entities.  
 
For more information  
 
Download the Entity flow-through (EFT) Submission (PDF: 1109KB) 
 
 
 
 
 
Australia’s Proposed Emission Trading Scheme – The Tax Policy Dimension 
 
With Australia moving towards an integrated action to reduce carbon emissions, including developing an Australian Emissions Trading Scheme (AETS), the effects of such a scheme need to be properly addressed by the Australian tax system. 
 
A joint report of the Institute of Chartered Accountants in Australia (the Institute) and Ernst & Young, released on 7 April, recommends tax policies that are consistent with reducing global carbon emissions while maintaining and enhancing Australia’s economic attractiveness.  
 
For more information  
 
Download Australia’s Proposed Emissions Trading Scheme – The Tax Policy Dimension (PDF: 993KB) 
 
 
 
 
 
Fringe Benefit Tax Design 
 
Since its introduction in 1986, Australia’s fringe benefits tax (FBT) has grown to become a considerable part of the day-to-day compliance burden of Australian business, none more so than for the small- to medium- sized sectors. The tax has gone through many changes in this time and has been the subject of considerable debate around complexity, inequities and economic inefficiencies.  
 
While reform of FBT is not a new issue, recent amendments to personal income tax have mounted an even stronger case for its review. This paper identifies the key issues inherent in the current application of the FBT and makes a number of recommendations on how to improve the system. 
 
Download the paper: 
 
Fringe benefit tax design: decision time (PDF: 461KB) 
 
 
 
 
 
Definition of Small Business 
 
To reduce the regulatory burden, a simpler definition of 'small business' should be applied consistently throughout tax legislation. Review the Institute’s research and recommendations on the issue. 
 
Download the paper: 
 
Research and recommendations on the definition of small business (PDF: 440KB).