The Australian Trucking Association wants capital gains tax (CGT) removed from transfers within family businesses.

The ATA is has urged the Productivity Commission to consider the change as part of its inquiry into business set-up, transfer and closure.

"Family businesses are the heart of Australia’s trucking industry," ATA CEO Stuart St Clair says.

"Previously, family businesses were able to use arrangements such as trust cloning to avoid triggering a capital gains liability when transferring ownership of the business within the family. However, this was abolished in 2008.

"The intent of business taxes is to collect revenue in the simplest way possible, without preventing businesses from increasing employment and contributing to economic growth.

"CGT on family businesses works against this. When a parent passes on their business to their children, they receive no benefit.

"The children could be liable if they chose to sell the business outside of the family, as they then benefit financially from the sale. But a change of company ownership within a family should not attract CGT."

The call is just one of several ATA requests in its submission to the inquiry.

The trucking group is also calling for:

  • small business turnover threshold to be lifted to $3 million and the feasibility of an increase to $5 million to be investigated
  • payroll tax rates to be harmonised across jurisdictions and a central administrator to process the tax
  • The Productivity Commission should investigate further the effect of stamp duty on business and recommend ways to alleviate its effect on business growth
  • amending Australian Business Number (ABN) arrangements to allow individuals to register for an ABN with the intent of carrying out an enterprise, as a way of reducing red tape on start-ups 
  • the Australian Taxation Office to investigate simplifying business activity statements (BAS)
  • the Productivity Commission to investigate the Board of Taxation’s review of Division 7A in order to allow family trusts to allocate funds in an efficient manner
  • amendments to the Code of Banking Practice and the Mutual Banking Code of Practice to allow a standardised notice period for notifying business borrowers of changes to loan terms and conditions.