As part of a new election policy, the Dutton Coalition Government has proposed the introduction of a capped tax deduction of $20,000 for business-related meal and entertainment expenses, which could boost the hospitality industry.
According to a press release, small businesses with a turnover of up to $10 million will be eligible and alcohol will be excluded from the policy. Furthermore, the measure is proposed to run for an initial two years and be exempt from Fringe Benefits Tax.
Leader of the Opposition Peter Dutton says this would benefit small business spending money on their staff or clients, as well as the hospitality venues who will see an increased spend in their businesses.
“Cafés, restaurants, clubs and pubs are the lifeblood of so many local economies around the country. A local coffee shops create important local jobs, but they are also spending money buying supplies from other local businesses,” he says.
Deputy Leader of the Opposition and Shadow Minister for Small and Family Business Sussan Ley says small businesses are bearing the brunt of the rising cost of living.
“We have listened to Australia’s cafés 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,” she says.
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,” he says.
