Pharmacy Daily | Long-time wait for Henry

THE implementation of recommendations from the Henry Review of the tax system will require a lengthy time line to fully implement, according the Pharmacy Guild of Australia. The comment comes in response to the Government’s “cautious” response to the tax review, which will see measures established to improve cash flow for small businesses, a reduction in the company tax rate and specific depreciation changes. The Guild has however hinted that there are several elements of the policy that “could be improved”. “While tax measures will be established to improve cash flow for small businesses, community pharmacy continues to be heavily impacted by GST supply chain issues relating to GST-free medicines,” said Guild president, Kos Sclavos. “This has locked community pharmacies into a poor cash flow position, which the Guild believes should be addressed. “No other industry sector suffers this impact to the extent of community pharmacy,” he added. The Guild has also said that whilst a reduction in the company tax rate for pharmacies operating under a company structure is welcome, the policy leaves out a substantial number of pharmacies which operate under other structures. “The Government has missed an opportunity to abolish payroll tax which the Henry Review recommended and should now set up a process with the States and Territories to pursue this vital reform for small business,” Sclavos said. The decision to increase the Superannuation Guarantee in 2012/13 (which was not recommended in the Henry Review) will, according to the Guild, have a negative impact on pharmacies. The three per cent will impact community pharmacy because, unlike other businesses, those costs cannot be passed on to consumers and is likely to cost more than the business tax cuts,” Sclavos said.

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