AMA joins small business push to stop collateral damage from changes to Bankruptcy Act
AMA President, Dr Bill Glasson, said today that the AMA shares the concerns of small business groups and other member organisations about possible collateral damage to community small businesses from the Government's Bankruptcy Legislation Amendment (Anti Avoidance and Other Measures) Bill 2004.
The AMA has lodged a submission to the Standing Committee on Legal and Constitutional Affairs outlining its concerns.
Dr Glasson said the AMA supports the primary objective of the legislation, which is to catch corporate high flyers who set out to deliberately cheat the system, but there are genuine fears that innocent small business operators, including doctors, could be harmed.
"We understand the prime motivation of the Bill is a small number of barristers who have engaged in some dodgy activity," Dr Glasson said.
"We understand also that the legal profession has instituted reforms and practices to weed out the troublesome few who are spoiling things for the many who are doing the right thing.
"This legislation is a jackhammer when a claw hammer would do the trick. The danger is that local community small business operators will get knocked over by mistake.
"We are talking about GPs, pharmacists, farmers, accountants, newsagents, stock and station agents, electricians, plumbers, builders, shopkeepers and retailers of all shapes and sizes - the very lifeblood of our towns and suburbs. The butcher, the baker and the candlestick maker aren't safe, either.
"If the Government proceeds with this Bill in this form, they would put at risk the personal assets of every small business owner in Australia.
Even worse, the legislation is retrospective, meaning it would punish small business arrangements that have been in place and working effectively for many years.
"This Bill is a small business killer that could rip crucial services out of Australian communities.
"It would discourage small businesses from taking on risk, which will have implications for jobs growth and innovation. As Robert Gottliebsen wrote in The Australian recently, the changes are 'a threat to entrepreneurialism' in this country.
"For many doctors, it would instantly remove the hard-won gains from the Government's medical indemnity rescue package," Dr Glasson said.
The AMA has recently met with small business groups and member associations to discuss a united response to the Bill.
In its submission to the Standing Committee, the AMA has proposed a more targeted approach that genuinely focuses on stopping a few high-income earners from intentionally rorting bankruptcy laws.