By Dongyun Kwon with AAP
Small businesses would be able to claim tax deductions on food and entertainment expenses for up to $20,000 under a coalition policy.
Tax breaks for work lunches are on the cards as part of a push by the coalition to win over small businesses, as Peter Dutton looks to regain ground in inner-city Brisbane seats.
Mr Dutton used a campaign rally to unveil a plan to allow tax deductions of up to $20,000 for meal and entertainment expenses for small businesses.
Federal Casey MP Aaron Violi welcomed the opposition leader’s announcement.
Mr Violi said this new policy is designed to help the 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.
“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.”
The deductions would only be eligible for businesses with a turnover of under $10 million and would run for two years, and be exempt from fringe benefits tax.
Alcohol would also be excluded from the proposal.
Mr Dutton said the tax measure would provide relief to local economies.
“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,” he said.
“Cafes, restaurants, clubs and pubs are the lifeblood of so many local economies around the country.”
Prime Minister Anthony Albanese hit out at the coalition policy, saying it had not been fully costed.
“This is a guy who opposed energy bill relief, who has opposed all the measures that were put in place for small business,” he said.
“Peter Dutton is yet to come out with serious policy announcements. And when he does come out with, finally, a costing, he came out with a nuclear costing that said there’d be 40 per cent less energy use compared with what the Australian Energy Market Operator says will be needed in 2050.”
Both major party leaders had spent time in recent days hitting the ground in key marginal seats ahead of the federal election, despite the date not being set.
The election is due to be held by May 17, although the prime minister hosed down speculation about the timing of the poll.
