Melina Bath MP – Home based businesses targeted in Labor’s tax grab
Small business owners operating from the family home are being hit with land tax bills after Labor lowered the tax exemption threshold on an individual’s primary place of residence.
The State Revenue Office (SRO) is issuing land tax bills to home based businesses with a turnover greater than $30,000 in gross income and a value of $50,000 for the area of the home claimed for work.
Previously the family home was exempt if the work area such as the garage or study used for business purposes was valued at less than $300,000.
The Nationals’ Melina Bath MP said land tax is another of the 60 new or expanded taxes introduced in the past decade by the Labor Government.
“During a cost of living crisis Labor is continuing to punish Victorians to pay for its appalling financial mismanagement.
“Taxing small business owners operating from home stifles innovation and unfairly targets families, in particular women who often juggle careers and raising children.
“Many entrepreneurial small businesses come to fruition around the family’s kitchen table, Labor’s change to tax thresholds will make operating a business from home and getting ahead much harder.”
The State Revenue Office (SRO) is data matching with ATO records to identify home based businesses that meet its lowered criteria to apply the tax.
Popular work from home careers include hairdressers, beauticians, consultants, graphic designers, personal trainers, bookkeepers, photographers, tutors, child carers, content creators and cleaners.
Ms Bath said Labor is seeking to cash in on the almost 400,000 home based businesses in Victoria.
“The Allan Government has broadened its scope to extract additional revenue from land taxes to plug spiralling debt from its inner city infrastructure budget blow outs,
“Victoria’s net debt is forecast to reach $188 billion by 2028, and now Labor is unfairly targeting the family garage, family room, study, or studio to help pay for it – nothing is off limits.
“Labor can’t manage money and small business owners are paying the price.”
Media contact – Jenni Rohde 0437 750 806