On 10 April, the Institute has lodged a submission on revised draft legislation and draft explanatory material released by Treasury for the alignment of small business concessions thresholds. In our submission, we sought some drafting changes and further confirmation/clarification of certain issues including confirmation that an individual partner of a business partnership can be a small business entity.  
 
On 27 February 2007, the Institute lodged a submission with Treasury on the exposure draft legislation for the alignment of small business tax concessions thresholds. The Treasurer and Minister for Small Business and Tourism released the exposure draft legislation for public consultation on 9 February 2007.  
 
In our submission, we made some general and specific comments including comments addressing questions that Treasury raised after the consultation workshop held on 12 February 2007, that Ali Noroozi, the Tax Counsel of the Institute, had attended.  
 
Some of our comments include:

• We appreciate the introduction of the aggregate turnover threshold test of less than $2 million to access the various small business concessions, however, we note the fact that particular concessions are still subject to additional existing criteria, may not fully alleviate the compliance burden
 
 

• We query the need for anti-splitting rules in the aggregate turnover test as the purpose of some of the small business concessions are to reduce the tax compliance burden on small businesses
 
 

• We recommend that the $2 million (aggregate turnover) and $6 million (maximum net asset value test for small business CGT concessions) thresholds be regularly reviewed to take into account any inflationary impact.