Labor Tax Policy – “A Kick In The Guts For SMEs”

26 Jun 2018 |

Federal Labor’s confirmation today that it would increase taxes on businesses with annual turnover between $10 million and $50 million if elected has been described by the Australian Chamber of Commerce and Industry as a kick in the guts.

The Australian Chamber is calling on the Opposition to reconsider its position.

“This is a kick in the guts for over ten thousand businesses employing over one million workers who now see themselves being penalised for having a go,” said James Pearson, the Chief Executive Officer of the Australian Chamber.

“This announcement pulls the rug out from underneath many hard working small and medium and family businesses.

“That’s not just businesses directly impacted by today’s decision, but the tens of thousands of smaller businesses with annual turnover of between $2 million and $10 million for whom Labor is still considering whether to put up taxes.

“Those smaller businesses have every right to worry that they will be next, as Labor is yet to announce if it will respect or renege on the tax cuts recently passed into law for them.

“Businesses now can’t be certain that the next tranche of the tax cut, coming into force this Sunday 1 July, won’t be replaced after the next election by a tax hike.

“That creates uncertainty, which will impact the willingness of business to invest more and take on more employees.

“Labor’s policy makers need to understand this is turnover not profit.

“This is your local pharmacist, your local supermarket, your local builder.

“These businesses are not big and they’re not necessarily that profitable, especially right now with energy and other costs hitting hard, and competition from overseas, particularly in the retail sector, intensifying.

“At a time when businesses overseas are benefitting from lower business tax rates, the alternate government of Australia risks making our country the odd one out..

“We call on Labor to reconsider its position, and back business, not pull it down,” Mr Pearson said.

Duncan Bremner

Director - Public Affairs and Advocacy

P  |  0448 822 666

E  |  [email protected]

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