The South Australian Liberal Opposition welcomes the policy announcement from Peter Dutton, cutting red tape for small businesses by introducing a capped tax deduction of $20,000 for business-related meal and entertainment expenses.
Small businesses with a turnover of up to $10 million will be eligible for this measure, with the exception of alcohol. The policy will be in place for an initial two-year period and will be exempt from Fringe Benefits Tax.
Leader of the Opposition, Vincent Tarzia said this is a significant win for small business during what has been a challenging time in the hospitality sector.
"Every day, the Opposition hears from small business owners who are struggling to keep their doors open and their staff on the floor due to rising operating costs,” Mr Tarzia said.
“At the same time, we have a government that is choosing to ignore the warning signs and has failed to deliver meaningful relief for these small businesses that play a significant role in the South Australian economy. A Tarzia Liberal Government will deliver relief where it matters most.”
Higher running costs combined with increased red tape and regulations are just a few of the challenges imposed on small business by the Malinauskas Labor Government.
A Tarzia Liberal Government will prioritise supporting small businesses with key policies such as:
- No payroll tax for trainees and apprentices.
- Lifting the Payroll Tax threshold to $2.1m.
- Boosting South Australian apprentices.
ASIC Insolvencies data has also revealed that businesses are failing at an accelerating rate – with 319 South Australian businesses entering external administration or having a controller appointed for the first time over the financial year to December 31, 2024.
“This data is more than double the 127 recorded just two years ago,” Shadow Treasurer, Sam Telfer said.
“This mounting pressure on businesses was further highlighted last week by Australian Bureau of Statistics Labour Force figures which showed unemployment in South Australia spiked from 3.9 per cent to 4.2 per cent in December 2024 - surpassing the national unemployment rate of 4.0 per cent.
“We are witnessing South Australian businesses collapse at an alarming rate, the labour market is weakening, and more people are struggling than ever before.
“This Federal Liberal policy is a crucial step in supporting South Australian workers and businesses - addressing the growing economic challenges that are raising alarm bells across the state.”
