Coalition to axe business breaks


Amongst the recent bickering between the major parties over their respective budget costing announcements, the changes proposed by the Coalition for small-medium businesses may have been overlooked a little.

As a part of its promised $31 billion in savings, the Coalition has pledged to:

  • abolish the instant tax write-off for assets costing less than $6,000;
  • abolish the up-front deduction of $5,000 for the cost of a motor vehicle; and
  • scrap the company loss carry back provisions, which allows companies that make a loss in one year to offset that loss against prior year profits (rather than carrying it forward and having to wait for future year profits to offset it) - effectively giving businesses a cash injection in the form of a tax refund.

This is indicative of more pain to come, regardless of who wins the election this weekend. A change in Government will likely not be the panacea for the economy that many expect as global economic factors, more than anything else, continue to weaken the Federal Budget position. A surplus is unlikely for a number of years yet, despite the rhetoric from both sides.

You can read more of of the Coalition's costing analysis here.

Posted: September 04, 2013 | 0 comments



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