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The Hon Brendan O'Connor. Minister for Small Business, Minister for Housing and Homelessness

Abbott confirms he’ll scrap tax breaks for small business 

01 Feb 2013
 

Tony Abbott has confirmed that the Liberals will cut vital tax breaks for Australia's more than two million small business men and women if elected in September.

Mr Abbott has pledged to scrap the instant asset tax write-off, which allows small businesses to claim a deduction for the full value of each new asset costing up to $6,500 after one year.

"The tax write-off cuts red tape and frees up cash flow for small businesses, and is expected to inject $1 billion back into small businesses in its first year," Minister for Small Business Brendan O'Connor said.

"Mr Abbott's pledge to scrap this important measure shows he has no understanding of the cash flow pressures on small businesses and no commitment to cutting red tape.

"Mr Abbott also confirmed that the Liberals would abolish the loss carry-back initiative, which allows companies which make a profit one year and a loss the next to claim a refund on tax paid.

"This initiative not only gives companies assistance if they make a loss, it encourages them to take careful risks and innovate and invest in their businesses.

"It is anticipated that the majority of the 110,000 companies to benefit from loss carry-back would be small businesses.

"People in small business have been asking for these measures. The Gillard Government has delivered them but a Liberal-National Government would rip them away."

Both measures are funded under the Minerals Resource Rent Tax and the carbon price, both of which Mr Abbott has pledged to repeal.

"Mr Abbott used his National Press Club speech to mouth empty platitudes about admiring small businesses but he clearly does not understand what they want and need," Mr O'Connor said.

"I also note that he did not repeat his promise to cut the company tax rate - a promise made less than a week ago. Incorporated small businesses would be paying less tax now had Mr Abbott not sided with the Greens party to oppose our planned tax cut last year.

"Perhaps if Mr Abbott had spent more time talking to the 215 businesses he has visited over the past two years and less time using them as a backdrop for doorstops designed to scare them and their customers, he might come up with some policies that would actually help them."

Media contacts: Minister's office 02 6277 7667

 
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