Labor must backdown on higher taxes on small business and Australian forestry industry - Thursday 28 March 2024

Thursday, 28 March 2024

The Coalition secured amendments in the Senate last night to protect millions of small and medium businesses, and Australia’s forestry industry, from Labor’s higher taxes.

The Coalition moved amendments to increase the instant asset write off for all businesses who currently pay the small business company tax rate.

These amendments mean:

  • 26,500 businesses with aggregated turnover of up to $50 million will be eligible to use the Instant Asset Write Off.
  • The asset threshold will increase from $20,000 to $30,000 – allowing businesses to claim accelerated depreciation on a wider range of assets.
  • Businesses can invest in productive assets without putting pressure on inflation.

These amendments were supported by the Senate crossbench and have now passed.

The Coalition also supported amendments from Senator Malcolm Roberts to protect Australia’s forestry industry from Labor’s badly designed multinational tax crackdown.

Labor voted against both amendments in the Senate.

While Labor accepted the amended bill to protect the forestry industry, it has refused to provide the same certainty to extend the instant asset write off.

Shadow Treasurer Angus Taylor called for the government to publicly support the Coalition’s amendments to give small businesses the same certainty that the Coalition and crossbench have provided the forestry industry.

“Labor’s multinational tax crackdown was so badly designed it was taxing Australian companies.

“While there are still serious issues with the Bill, the Coalition and the crossbench have secured vital reviews and protections to the legislation.

“Jim Chalmers has a choice: will he support small businesses so they can invest and innovate, or will he slug them with higher taxes and less incentives to drive productivity in their businesses.

“Australia’s 3.6 million small businesses generate one third of GDP, make up 98% of all businesses and employ around 50% of the private sector workforce. Small businesses are the backbone of our society and vital to a strong economy.

“Small businesses need a champion in government, but instead small business owners have seen their pay fall by almost 9% in the last year under Labor.

“Labor’s failures on workplace relations, energy, housing and tax are driving up costs for Australian businesses.

“Strong economic management - not broken promises - is the only way to provide relief to middle Australians from Labor’s cost of living crisis.”