AHA Praises Coalition For FBT policy

After years of lobbying, the issue of Fringe Benefits Tax (FBT) relief is again being taken seriously in Canberra.

The AHA|SA and our national body has welcomed the Coalition’s policy proposal to introduce a capped tax deduction for small businesses of $20,000 for business-related meal and entertainment expenses.

Leader of the Opposition, Peter Dutton, said small businesses with a turnover of up to $10 million will be ligible, however, alcohol will be excluded from the policy.

The measure will run for an initial two years and be exempt from Fringe Benefits Tax.

He said there were dual benefits to this policy.

“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. It will help businesses recover from a horrible period under three years of Labor,” he said.

“Cafés, restaurants, clubs and pubs are the lifeblood of so many local economies around the country.

“Hospitality is a huge part of the economy and yet like so many businesses at the moment, they are hurting under Labor. Skyrocketing electricity, gas and insurance prices. A local coffee shop creates important local jobs, but they are also spending money buying supplies from other local businesses.

“Small business is in our DNA as Liberals and Nationals and we want to help those businesses survive Labor’s time in office and thrive when we get back into Government.”

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 said.

“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.”

Win For Commonsense

AHA National CEO Stephen Ferguson, said the Association has spent years pushing for FBT relief for hard-pressed small businesses and their workers.

“This policy proposal by the Coalition is a win for commonsense – especially during a cost of living crisis,” he said.

“Why shouldn’t a boss be able to take his hard-working team down to the pub and shout them a meal and use it as a deduction? Everyone wins.

“The current structure of the FBT means the boss cannot take their workers to a hotel, club, or restaurant at the end of the week as a reward without the business and worker being hit with additional taxes.

“Of course, it’s a different story for the big end of town – which has work arounds including fully catered in-house board room lunches and baristas – something a familyowned business and their workers don’t have the privilege of doing.

“It’s great to see the Coalition has listened and supports our proposal.”