Leader of the Opposition Peter Dutton has promised to make business-related meal and entertainment expenses tax deductible for small businesses, if he is elected.
Capped at $20,000, the measure would apply to small businesses with a turnover of up to $10 million and exclude alcoholic beverages. Dutton also announced that the measure would not be subject to Fringe Benefits Tax.
The Opposition Leader touted the policy’s dual benefits, pointing out that hospitality venues stand to gain from increased small-business spending.
“We have listened to Australia’s cafes and restaurants and the hospitality sector, and have delivered a policy to support them to get back on their feet,” said Shadow Minister for Small and Family Business Sussan Ley. “This policy will give a shot in the arm to small businesses across the country.”
“This is a fiscally responsible downpayment on our commitment to lower, simpler, fairer taxes and rebuilding Australian businesses,” said Shadow Treasurer Angus Taylor.
The announcement is the second major tax sweetener that the Coalition has promised small businesses this week. Last week, Dutton pledged to raise the popular instant asset write-off to $30,000 if successful in the next federal election.
While the Coalition’s recent announcements signal its intentions to court small-business owners in the upcoming election, Labor is also vying for favour. The Government has recently committed $11 million to bolster small-business support services, while the Prime Minister last week pledged a $3 billion upgrade to the National Broadband Network.
