Small Business Tax Reform Australia: What It Means For Family Businesses
- Future Accounting
- Aug 25
- 4 min read
Updated: Aug 29
Written by: Chris Mulcahy
Why family businesses must pay attention to upcoming changes in small business tax reform Australia
Q: Why did the government choose a round table? A: Because it made cutting corners so much easier.
The government’s round table on small business tax reform in Australia has recently completed. While it was framed as consultation, many business owners are left wondering whether it was about genuine listening - or simply softening us up for major reform.
Small and family businesses are no strangers to red tape. Every year brings more forms, more rules, more deadlines - and now the new wave of “green tape” is adding another layer of complexity. Environmental reporting, sustainability compliance, and energy efficiency standards may sound good on paper, but in practice they’re just more costs and more hurdles for businesses already stretched to the limit.
The government’s recent round table on tax reform
The theme of the discussion was fairness, simplicity, and sustainability. In practice, it raised concerns that businesses are in for more complexity, not less. Key areas flagged included:
GST creep - while the GST rate hasn’t increased, more goods and services are being pulled into the net, alongside tighter ATO compliance.
Superannuation reforms - compulsory contributions continue to rise, but the biggest concern is the proposal to tax unrealised gains in super accounts above certain thresholds. For family businesses with property, farms, or operating assets in an SMSF, this means being taxed on paper gains without cashflow to fund the bill.
Inheritance tax whispers - while denied for now, the fact it keeps surfacing signals Treasury’s appetite for new revenue. Family farms and businesses would be especially exposed.
State tax grabs - such as Victoria’s new Fire Services Levy, effectively another land tax by stealth, piling onto already heavy property outgoings.
Rather than delivering real simplification, the trend is toward small adjustments layered over old rules, leaving business owners juggling an increasingly complicated system.
Complexity in small business tax reform disguised as fairness
Small business tax reform in Australia is often pitched as being about fairness - making sure everyone pays their share. But many small and family operators feel like the system punishes them more than anyone else.
When thresholds don’t keep up with inflation and land values, when succession planning is penalised by outdated CGT tests, and when payroll tax thresholds discourage hiring, reform stops looking like fairness and starts looking like yet another burden.
Pressures beyond tax reform
Of course, tax isn’t the only pressure point. Business owners are facing challenges on all sides:
Government spending continues to grow, and we all know who ends up paying.
Immigration levels are adding to demand for housing and services, while many small businesses struggle to attract and retain skilled staff.
Energy costs keep rising, and businesses are being asked to shoulder more of the compliance load under climate policies.
And here’s the human impact: in recent times, I’ve had many business owners say to me, “it’s not worth it anymore - it’s all too hard.” These are hardworking families who’ve poured everything into their enterprises, only to feel crushed by rising costs and endless red and green tape.
Why family businesses should be cautious
Family enterprises are the backbone of regional and suburban Australia. They employ locally, invest locally, and support local communities. Yet too often, tax and regulatory changes feel like they’re designed with large corporates in mind, leaving family businesses to carry more than their fair share.
That’s why any talk of small business tax reform in Australia should be approached with caution. Unless governments genuinely simplify, rather than complicate, the reforms may only add to the load small operators already face.
Use them before we lose them: take action now
Small and family businesses don’t need more consultation theatre. They need certainty, simplicity, and a tax system that rewards their resilience, not one that punishes them for trying to grow, plan for retirement, or hand over to the next generation.
That's why we are putting together our 5-part series: “Use Them Before We Lose Them” - a practical guide to taking advantage of the generous small business tax concessions that exist today, before they’re watered down or scrapped tomorrow.
Read the series: Use Them Before We Lose Them
If you would like to receive a copy of the "Use Them Before We Lose Them" guide to taking advantage of the very generous taxation concessions available to small and family business, join our waitlist and it will be sent to you when completed.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
