CANBERRA: Politicians and central bankers have said that GST burden is killing small businesses. why businesses aren’t investing ought to speak to Sydney hairdresser Penny Martin. Ms Martin decided to work from home instead, letting five employees go and turning down clients to keep her annual revenue below $75,000 – all to avoid GST paperwork.
After running her own salon for several years, the burden of GST paperwork became so stressful, costly and time-consuming she decided to call it quits. She supplements her income by teaching. “I have purposely scaled down my business for that very reason, because it’s all just too much,” Ms Martin told AAP. “I do not want to cop the GST, I’d rather earn less, go away and do a couple of days teaching a week and say no to customers and not bother, it’s just not worth it.
“I had five people that I employed, people doing work experience from schools, people in juvenile justice used to come and do work experience with me, all that commitment, all the charity events, all those things, gone. “There’s no incentive to try and get on in this country.” Ms Martin’s story paints a bleak picture at a time when Australia’s jobless rate is rising to decade highs and the economy is struggling to grow.
Sluggish business investment was a key reason the Reserve Bank recently scaled back its forecasts for Australia’s economic growth, and in turn, cut interest rates to a record low. RBA officials have repeatedly blamed a lack of business confidence and risk-taking as the major barrier to the economy’s ability to compensate for dwindling mining investment. They say it’s up to the politicians to work out how to rouse those spirits. Perhaps they should give Penny Martin a call.
