Dear Elected Ministers,

We, the undersigned, are writing to voice our deep concern and frustration regarding the current Australian tax system, which disproportionately impacts small businesses across the country. As business owners who have invested years of hard work, financial resources, and personal sacrifices to build enterprises that contribute significantly to the Australian economy, we find the tax burdens we face unsustainable.

Small businesses like ours, which make up 97% of all businesses in Australia, are the backbone of our economy. We create jobs, drive innovation, and support local communities. Despite this, we are being crippled by a tax system that seems designed to favour large corporations and the wealthy elite over hardworking Australians.

Key Issues Affecting Small Businesses:

1. Payroll Tax:
The current payroll tax threshold of $1 million is out of touch with the realities that small and medium-sized businesses face today. In a competitive job market, offering competitive salaries and benefits is essential for retaining talent. Many small businesses easily exceed this payroll threshold, not because of substantial profits, but due to rising wage costs, including superannuation. This disproportionately affects businesses with modest margins. We propose raising the threshold to $10 million to better reflect current economic conditions and allow small businesses to thrive.

2. Fringe Benefits Tax (FBT):
The existing FBT structure penalises businesses that offer additional benefits to attract and retain employees. In a tight labour market, benefits such as company cars or health insurance are often necessary to compete with larger firms. Yet, the heavy taxation of these benefits increases financial pressure on small businesses. A review and revision of FBT is essential to lessen this burden and support businesses in offering competitive employment packages.

3. Luxury Car Tax:
Initially introduced to protect the now-defunct Australian car manufacturing industry, the luxury car tax is outdated and no longer serves its original purpose. The threshold is unrealistic for many businesses that require reliable vehicles for their operations. We propose the removal or significant restructuring of this tax to reflect the current state of the automotive industry and the practical needs of small businesses.

The Bigger Problem: Lawmakers Are Not Working for Us
It is increasingly apparent that our elected lawmakers, whose salaries are paid by the taxes we contribute, are not working in the best interest of the people. Instead, the policies being implemented seem to favour large corporations and the wealthy elite—those with the financial power to influence political outcomes. Big businesses continue to benefit from legislation that supports corporate giants, while small business owners struggle under an unfair tax regime.

This imbalance perpetuates a system where wealth and power are concentrated among a select few, while everyday Australians, who work tirelessly to keep their businesses afloat, are left behind. Our lawmakers should represent the interests of all Australians, not just the wealthy few.

The Impact on Small Business and Mental Health:
Operating a small business in this environment is more than just a financial burden; it’s a mental health challenge. The endless cycle of taxes—GST, corporate tax, payroll tax, FBT, land tax, rates, and luxury car tax—leaves little room for growth, innovation, or even peace of mind. The financial pressures are immense, and for many small business owners, the sacrifices made in the name of survival are overwhelming.

We are tired of being ignored. Our businesses are vital to the fabric of this nation, and yet, the tax system continually punishes us for our success. It’s time for lawmakers to recognise the critical role small businesses play in the Australian economy and to implement meaningful reforms.

Proposed Reforms:
Increase the payroll tax threshold to $10 million to reflect modern wage conditions and allow small businesses to grow without being penalised.
Revise the Fringe Benefits Tax to better align with today’s employment practices and reduce the financial burden on small business owners.
Abolish or restructure the Luxury Car Tax to reflect the current state of the automotive industry and the operational needs of businesses.
We urge you to consider these changes seriously. Our businesses deserve a fair tax system that encourages growth, rewards hard work, and supports the backbone of Australia’s economy. Small business owners are not asking for special treatment, but for a tax system that reflects the realities we face and allows us to continue contributing to the economic and social well-being of our nation.

Thank you for your attention to this critical issue. We look forward to seeing real change.