The Coalition has unveiled its new plans for small business. Its latest election pledge – announced last Saturday – involves two new tax incentives for small businesses.
The first is an ‘Entrepreneurship Accelerator’ to support businesses in the first three years of their operation. These new ventures would get a tapered tax offset starting at 75 per cent of their first $100,000 of taxable income, and 50 per cent for their second $100,000 of income in their first year of operation.
The Coalition has also promised a $2000 tax deduction for tech upgrades of $4000 or more as part of a ‘Tech Booster’ initiative.
Both pledges were included in the LNP’s new ‘Plan for Small and Family Business’, also released on Saturday. The plan includes other measures announced earlier in the election campaign, like a permanent $30,000 instant asset write-off, $20,000 worth of tax-deductible dining, and removing a suite of IR changes introduced by Labor, such as the ‘right to disconnect’ law.
The plan has been welcomed by The Council of Small Business Organisations Australia (COSBOA), but it says that the Coalition’s promises still don’t go far enough.
“Our Fair GO for Small Business campaign is asking for a tax cut for small business from 25 per cent to 20 per cent to provide immediate and ongoing relief to the lifeblood of our economy,” said COSBOA CEO Luke Achterstraat.
However, the SME peak body was optimistic about the Coalition’s plans to slash red tape for businesses via a ‘Small Business Deregulation Taskforce’ in Cabinet.
“Removing red tape requires more than rhetoric – it needs a concerted effort and coordination between key portfolios,” said Achterstraat. “It is vital this taskforce engages with industry and is ambitious in its agenda.”
