Small business

Tax clinic program for small business

In 2024, the program supported 626 small businesses across Australia, dedicating a total of 3,053 work hours. This represents the highest level of support provided among all categories of assistance. The 3 most common vulnerability experiences among small business clients were low income (184 cases), financial hardship (155 cases), and limited financial literacy (42 cases). Due to long-term non-compliance, many of these clients required a significant number of paper lodgments (782) compared to online submissions (239), in addition to numerous pending business activity statement (BAS) submissions – 421 prior-year BAS compared to 239 for the current year.

To enhance tax knowledge and address these issues sustainably, the program engaged in extensive outreach and community engagement. It delivered accessible and culturally sensitive support in areas such as financial education, business planning, and navigating government processes. These efforts extended beyond mere compliance, aiming to build confidence, improve financial literacy, and promote economic participation among small business owners.

The program also sought to leverage local community resources through collaboration, forming partnerships with local business chambers, community organisations, financial counsellors, and regional development agencies to ensure services are relevant, culturally appropriate, and responsive to local needs. Additionally, the program collaborated with accounting firms (for example, PwC and KPMG operating in Newcastle city), to extend its reach. These partnerships helped build trust and ensure ongoing support, contributing to long-term economic inclusion and resilience. A community-driven and respectful engagement approach is vital for fostering meaningful change and enabling small businesses across Australia to thrive.

Challenges facing small businesses

Small businesses across Australia continue to face persistent structural barriers in accessing government systems (for example, myGov), financial services, and support programs. Challenges such as limited digital infrastructure, low levels of financial literacy, complex regulatory environments, and issues of trust and awareness hinder their engagement with essential resources. Consequently, many small enterprises struggle with compliance, accessing grants, claiming entitlements, and managing tax obligations—factors that can lead to financial hardship and limit growth prospects.

While there was a slight decrease in small business clients seeking tax clinic assistance in 2024, some clinics observed an increase in the number of requests for assistance from failed small businesses. For example, the Newcastle tax clinic recorded a 52% increase in service output compared to the previous year. Many of these businesses were burdened by substantial debts and needed to get their tax affairs in order. They often had more complicated tax affairs, outstanding Income tax, PAYG and superannuation debts. These challenges underscore the continued importance of the program’s work.

Case study: cleaning services small business A migrant-owned business run by a single mother, Client F’s company was struggling with debt and uncertainty in its early stages. With limited English proficiency, she faced difficulties understanding her obligations. The CDU Tax Clinic program provided her with assistance in lodgments and business guidance. Today, she operates a successful enterprise employing other migrant women.

 

Case study: Indigenous small business An Indigenous-owned business embarked on its entrepreneurial journey with support from the CDU Tax Clinic. The guidance and resources helped the business grow into a thriving enterprise, now employing Indigenous people across Australia and contributing to community economic development.