Small businesses across Australia are being visited by Australian Competition and Consumer Commission officers to discuss, on site, aspects of the transition to the New Tax System.
"For example, in northern NSW during this week staff have made a sweep of small businesses and business associations in Taree, Port Macquarie, Coffs Harbour and Grafton", ACCC Chairman, Professor Allan Fels, said today.
"The visits are aimed at assisting small business that may be experiencing difficulties with price change issues, such as when prices should be adjusted, the types of compliance cost that can be claimed, and what records should be kept.
"These visits have been well received", Professor Fels said. "One mixed business proprietor commented that he was 'seminar-ed out' and pleased to discuss his exact problems with the officers.
"The officers are explaining the pricing guidelines, particularly in relation to price exploitation, and the need for businesses to be able to explain to consumers their price changing policy.
"There are more than 300,000 small businesses in NSW which employ more than one million people. In fact, they make up 97 per cent of all NSW business. Many small businesses do not have the depth of resources available to large businesses to ensure compliance with the Act.
"In addition to personal visits, the officers are conducting interviews with print and electronic media.
"The ACCC wants to get an insight into the knowledge and readiness of small business in these regional areas.
"The ACCC has a role in educating and providing guidance to small business on the price exploitation provisions under the Trade Practices Act 1974.
"It has issued a number of publications, often targeted to the concerns of particular industries, plus a specially designed small business kit.
"The kit helps small business to adjust their prices and ensure benefits are passed through to consumers, as well as ensuring that pricing decisions take into account overhead costs.
"The free small business kit includes: a Compliance Guide for Small Business; a Cost Savings Estimator; a Retail Price Adjustor; and the ACCC Price Exploitation Guidelines.
"The kit comes in a business card-sized CD ROM. It is also available on line for small business to download from the ACCC website.
"The Compliance Guide for Small Business explains in plain English what small business must do to comply with the ACCC price exploitation guidelines. It provides many practical examples and tips. "The Cost Savings Estimator is for small businesses with an annual gross revenue of less than $10 million. It allows them to enter information from their profit and loss statement and get an estimate of the likely cost savings from the New Tax System changes. The New Tax System will cut business costs from July 2000 by abolishing Wholesale Sales Tax and other indirect taxes, as well as reducing excise on petrol and diesel. Businesses must pass these savings on in full to consumers. "The Retail Price Adjustor assists small retailers to adjust their retail prices taking into account cost savings in overheads, the removal of wholesale sales tax and adding GST. It also calculates the amount of WST in stock on hand".