Big Promises for Small Biz: Breaking Down the 2025 Federal Election
We are expecting a federal election in May this year, so over the next few months we will be bringing you updates on any POLICY ANNOUNCEMENTS that we think are relevant for small business.
Such as:
$20k tax deductible entertainment for SME’s - announced by Peter Dutton/Coalition
$7.2 billion in new funding from the Federal Gov to fix Bruce Highway
Permanent $30k instant asset write off - proposed by Peter Dutton/Coalition
We will expand on the above topics over the next few weeks.
Along with any NEW policy’s that arise over the next few months.
The link to this blog will always be found on our website or via our Instagram bio. We will also provide updates on Instagram when new information has been added to the blog.
POLICY #1 (Coalition) $20k Tax Deductible Entertainment for SME's
First cab off the rank policy wise comes from the Coalition (The Liberal Party & National Party work together to form a Coalition). Currently the opposition party, the Coalition has dropped a small business tax policy aimed at helping the struggling hospitality sector.
Small businesses (with a turnover under $10m) will be able to claim a $20k tax deduction for business related meals & entertainment in an effort to reduce red tape around Fringe Benefits Tax (a tax on employees or owners receiving personal benefits from businesses) as well as providing a boost to the hospitality sector. Notably, alcohol is excluded from the policy, so this will still attract FBT where it would normally.
Peter Dutton has said of the policy that will last an initial two years: '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. Cafes, restaurants, clubs and pubs are the lifeblood of so many local economies around the country.'
The Labor Party (and the current government) have disputed the benefits of the policy, with Treasury modelling the cost to Australia (in reduced tax revenue) will be circa $1.6 billion that could be as high as $10 billion a year. Labor argues that the policy means that 'workers will have to pay for their bosses' lunch'.