Coalition announces small-business tax deduction

A capped tax deduction of up to $20,000 for meal and entertainment purposes has been announced by the Dutton Coalition government. Small businesses with a turnover of up to $10 million will be eligible for this incentive.

“This is a win for the small business spending the money on their staff or clients, and a win for the hospitality venues who will see an increased spend in their businesses,” said Dutton.

“Cafes, restaurants, clubs and pubs are the lifeblood of so many local economies around the country. Hospitality is a huge part of the economy. A local coffee shop creates important local jobs, but they are also spending money buying supplies from other local businesses.”

Spurring this decision are reported record-high insolvencies for small businesses, many of which were in the hospitality industry.

“We have listened to Australia’s cafes and restaurants and the hospitality sector, and have delivered a policy to support them get back on their feet – this policy will give a shot in the arm to small businesses across the country,” said deputy leader of the opposition and shadow minister for small and family business, Sussan Ley.

If enacted, the program will run for an initial two years. While meals and entertainment are included, alcohol will be excluded.

“This is a fiscally responsible downpayment on our commitment to lower, simpler, fairer taxes and rebuilding Australian businesses,” said shadow treasurer Angus Taylor.

“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.”

With the federal election fast approaching, the lead-up could see more promises made to our small-business sector.

Speaking on the latest episode of Broker Daily Uncut, Momentum Media director Phil Tarrant believes the build-up to the May election will see some love shown for SMEs.

“Dutton over the weekend [was] handing down these ideas around tax incentives for small businesses. I remember when we caught up late last year with the Shadow Treasurer, one of the points of discussion we had with him is around under the current government, you hear very little around SMEs, small businesses. It’s a very different government,” said Tarrant.

“Already they’re getting on the front foot the opposition. And as well as housing policy, they’re going to be fighting for votes when it comes to the small business sector. These are the people who are sitting in train station cafes trying to sell a few coffees and knock out a few ham sandwiches. They’re the heartbeat of Australia and the most Australians are employed by small businesses.”

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

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