Labor’s failure to prioritise small businesses kills confidence and short circuits…
With just days to go in the 2023-24 Financial Year, Labor has caved to Coalition pressure and the outcries of the small business community by passing measures that could have, and should have, been law last winter. This comes as the small business community and accountants have made clear that these delays will result in many businesses missing out on benefiting entirely come tax time.
Because of Labor’s legislative stuff up, Australian small businesses have had to contend with uncertainty around small business tax supports as insolvencies skyrocket. Labor failed to prioritise the passage of the Instant Asset Write Off and Small Business Smart Energy Incentive through the Parliament and blocked amendments for a bigger tax cut to small businesses.
In its handling of this Bill, Labor has delayed the passage of the Instant Asset Write Off legislation by months, and voted eight times against more generous tax cuts to small businesses. If elected, the Coalition will make the Instant Asset Write Off permanent to end the uncertainty and ensure small businesses pay lower, simpler, fairer taxes.
Incredibly, the Albanese Government’s much vaunted Small Business Smart Energy Incentive will only be legislated in time for three full business days before the End of Financial Year. Leading accounting body, CPA Australia, has said:
“likely the only businesses who will ultimately benefit from the measure will be those who coincidentally happened to make upgrades this year, rather than those who were incentivised to do so because of the scheme”
The Small Business Smart Energy Incentive was designed to give a tax break worth up to $20,000 to support electrification and more efficient use of energy, helping businesses save money on energy bills by electrifying their heating and cooling systems, upgrading to more efficient fridges and induction cooktops, and installing batteries and heat pumps. Purchases need to be made and installed in the 2023-24 financial year and the measure will not be extended to 2024-25 and ends on 30 June.
Deputy Leader Sussan Ley condemned the Albanese Government for failing to deliver certainty for small businesses.
“Thousands of businesses that survived a once in a century pandemic under the Coalition are going to the wall because of the economic crisis created by the Albanese Government – and now we see that even the meagre support which Labor did put on the table ranked at the very bottom of their priorities.
“I think Australians who support stronger environmental policies, including the Crossbench, would be shocked to learn hundreds of thousands of small businesses will have missed out on using this electrification incentive because of Labor’s delays.”
Shadow Treasurer Angus Taylor said the delay on this legislation is another example of the mess Labor’s made of the energy system.
“Small businesses are the engine room of our economy but they’re being smashed by Labor’s high prices, bad workplace laws, and high energy bills.
“Labor cut vital programs to support small businesses to bring down their bills when they came to office, and Labor’s delay on passing this Bill leaves struggling businesses in manufacturing, hospitality, and tourism without support to invest in bringing down their power bills.
“Affordable, reliable energy is the key to a low inflation, strong growth economy. There is no future made in Australia without affordable energy. Instead, struggling businesses are facing electricity and gas prices that have risen by 18 per cent and 25 per cent since Labor came to office.
“All Labor has delivered for small businesses is a homegrown cost of doing business crisis. Only a Peter Dutton Coalition government will deliver the strong back-to-basics economic leadership to get Australia back on track.”
The Instant Asset Write Off will be a clear contrast at the election. The Coalition has committed to raising it to $30,000 and making it permanent, whereas Small Business Minister Julie Collins has ruled out Labor raising it or ensuring it is an ongoing tax support for small businesses.