Small businesses are concerned that the Government’s small business tax cuts announced on the weekend might be cut out before they are even enacted.
The Opposition has announced that it plans to oppose the Resource Super Profits Tax legislation, which is tied to the proposed small business tax cuts released by the Government in response to the Henry Review on Sunday.
“The idea that the tax cuts might be cut out before the even come into effect is very concerning,” said Council of Small Business of Australia (COSBOA) CEO Jaye Radisich.
“We expressed concern on Sunday that the small business tax cuts might fall mercy to the Senate as they rely on the passage of the Resource Super Profits Tax – we don’t want that concern to become reality.”
“The tax cuts and depreciation bonus for small businesses announced by the government is a good step forward on tax reform. On balance, the initiatives announced this week will deliver a net benefit to small businesses.
“We need to remember that small businesses are responsible for the employment of 4.5 million people, and that small business activity accounts for one third of our GDP.
“Small businesses play a critical role in our economy by providing jobs and keeping profits in Australia and deserve tax incentives to help promote innovation and entrepreneurial activity.
“Denying the introduction of the $5000 instant depreciation write-off will harm small businesses that operate as companies, as well as sole traders, partnerships and trusts.”
COSBOA CEO Jaye Radisich said the organisation is willing to work with the Government and the Opposition to ensure that the company tax reduction and the depreciation incentives announced post Henry Review can be put into place as quickly as possible.
