Abbott’s axe to hurt small business at the worst possible time - 1 December 2013






Abbott’s axe to hurt small business at the worst possible time

Business is unhappy with the Abbott Government’s plans to cut the loss carry-back scheme and the instant asset write-off.

This week the Abbott Government will vote to axe tax breaks for Australian small businesses introduced by Labor.

“Mr Abbott is taking an axe to a tax break for small business,” said Shadow Assistant Treasurer, Dr Andrew Leigh.

“By reducing the thresholds available under the small business asset write-off regime from $6500 to $1000, Mr Abbott is adding complexity and compliance costs for small businesses.”

Under Labor’s plan companies can carry a tax loss back and receive a refund by claiming a tax offset against the tax they had previously paid – known as a loss carry-back tax offset.

“The Government needs to explain why it is increasing costs and red-tape for small business,” said Shadow Minister Assisting the Leader for Small Business, Bernie Ripoll.

”How can they promise to reduce $1billion of red tape, then makes cuts that increase red tape and compliance costs for small business?”

“This is just another example of the Government’s rhetoric not matching up with its actions.”

“Australians running small businesses are quickly learning that they did not get the government that they were promised.”

The Australian Industry Group (AiGroup) and the Australian Chamber of Commerce and Industry (ACCI) told a Senate Inquiry that scrapping nearly $4 billion in tax concessions will increase compliance costs and reduce investment returns at a time when small business needs all the help it can get.

“We do not support the repeal of the loss carry-back provisions and we do not support the proposal to reduce the small business asset write-off threshold."

“The proposal to remove the instant write-off facility for small business will have a material impact on them and will decrease investment at the time it is needed most.” - Dr Peter Burn, AiGroup

And support retaining the Instant Asset Write-Off by saying:

“It relieves business of all the paperwork, it reduces the costs they have to pay their accountants and gives them more time in their  businesses-less money to the accountants and more money for reinvestment” -  Dr Burn

“We do support the retention of the instant asset write-off provisions and the provisions relating to carry-back of losses, which are measures that support small business.”  - Mr Peter Anderson, ACCI

The Senate Economics Committee is due to release its report on the MRRT repeal bills on Monday.

Sunday, 1 December 2013

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