Tax Literacy of Australian Small Businesses

18(2) Journal of Australian Taxation 21-61, 2017

41 Pages Posted: 22 Dec 2017 Last revised: 7 Jan 2018

See all articles by Brett Freudenberg

Brett Freudenberg

Griffith University - Griffith Business School; Griffith University - Griffith Law School

Toni Chardon

University of Southern Queensland

Mark Brimble

Griffith University - School of Accounting, Banking and Finance - Nathan and Logan Campuses; Centre for Financial Independence and Education

Melissa Belle Isle

Griffith University

Date Written: December 18, 2017

Abstract

Small businesses are a critical component of economies, although they face a myriad of issues, including their literacy in relation to a number of key business issues. In recent years tax literacy has been argued as an important part of financial literacy. Research has demonstrated that a person’s tax literacy is likely to be greater when they are self-employed and operate their own businesses. However, whether this increased tax literacy is sufficient to address the labyrinth of issues faced when running a business is questionable. This article reports further evidence about the tax literacy of Australians who have conducted a business in relation to GST, deductions and their compliance attitude. These findings can build the foundation for future work to explore how tax literacy is an important component of financial literacy for small businesses.

Keywords: tax literacy, financial literacy, Australia, small business, compliance, deterrence, gst, cash flow

JEL Classification: K34, H25, I22

Suggested Citation

Freudenberg, Brett and Chardon, Toni and Brimble, Mark and Belle Isle, Melissa, Tax Literacy of Australian Small Businesses (December 18, 2017). 18(2) Journal of Australian Taxation 21-61, 2017. Available at SSRN: https://ssrn.com/abstract=3090125

Brett Freudenberg (Contact Author)

Griffith University - Griffith Business School ( email )

Brisbane, Queensland 4111
Australia

Griffith University - Griffith Law School ( email )

Nathan Campus, GU
Nathan 4111
Australia

Toni Chardon

University of Southern Queensland ( email )

P.O.Box 238 Darling Heights
Toowoomba, Queensland 4350
Australia

Mark Brimble

Griffith University - School of Accounting, Banking and Finance - Nathan and Logan Campuses ( email )

University Drive
Logan, Queensland 4131
Australia
(07) 373 55311 (Phone)

Centre for Financial Independence and Education ( email )

Brisbane, Queensland 4111
Australia

Melissa Belle Isle

Griffith University ( email )

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