NEW TAX DEDUCTION TO DELIVER RED TAPE RELIEF FOR SMALL BUSINESS
A Dutton Coalition Government will cut red tape for small businesses by introducing a capped tax deduction of $20,000 for business-related meal and entertainment expenses.
Federal Member for Casey, Aaron Violi MP said this new policy is designed to help our local cafes and hospitality businesses after a tough few years.
“These deductions mean small businesses will be able to take their staff or customers out to a local pub or café and claim it as an expense, which encourages businesses to support our hospitality industry,” he said.
“26,000 small businesses have closed in Australia in the past two and a half years. It’s about supporting those small businesses by encouraging an increased spend in local venues, which benefits our economy and will help these venues continue to create local jobs,” he said.
“We have listened to local cafes, restaurants and the hospitality sector right across the nation and designed a policy to support them to get back on their feet.
Shadow Treasurer Angus Taylor said the new deduction would apply to meal and entertainment expenses that have a connection with business activity and income, including dining and entertainment provided to clients, vendors, and employees.
“This is a fiscally responsible downpayment on our commitment to lower, simpler, fairer taxes and rebuilding Australian businesses,” Mr Taylor said.
“It builds on our commitment to rebuild small business by making the Instant Asset Write Off permanent, saving more than 98 per cent of businesses the hassle of dealing with depreciation schedules when they invest in their businesses.
Small businesses with a turnover of up to $10 million will be eligible and alcohol will be excluded from the policy. The measure will run for an initial two years and be exempt from Fringe Benefits Tax.
Find out more about our plans at https://www.liberal.org.au/our-plan.