Small Business urges Government to keep tax breaks to re-build tax receipts

In response to the Mid-Year Economic and Fiscal Outlook report released on Tuesday, Council of Small Business of Australia (COSBOA) is calling on Joe Hockey to keep tax breaks in place for Small Business to help keep the economy moving and rebuild tax receipts.

COSBOA is pleased with the attention that Small Business has received in 2013 but this positive sentiment needs to be matched with action and policy. Recently, the coalition said that it would repeal some of the former Labour Government’s tax concessions including the loss carry-back and instant tax write offs.

Speaking at the National Press Club, the Treasurer announced that a deficit in June 2014 was expected to reach $47 million and said that unless the Government took immediate action, Australia would be in debt for more than a decade.

Peter Strong, Executive Director of COSBOA said: “We need the Government to keep the current tax breaks for Small Business in place. A saving in the budget from removing these measures will not impact the budget greatly and will affect the confidence of Small Business people, which will be counterproductive for the economy.

“Small Business confidence lifted following the election but we need the government to maintain that confidence, deliver on promises and provide much needed support.

“While the Government has clearly acknowledged the contribution and value of Small Business, the removal of much needed tax support sends a mixed message,” Mr Strong added.

With the budget deficit now forecast, COSBOA urges the Government to develop a cohesive long term plan for the economy that includes Small Business people and supports their capacity to innovate and increase productivity.

COSBOA will continue to work with the Business Council of Australia (BCA) in 2014 following the release of their Action Plan for Enduring Prosperity, which has identified nine policy areas and 93 recommendations that aim to maintain strong economic growth, restore Australia’s competitiveness, lift productivity and support businesses.

“The BCA Action Plan is a good start to a national plan for securing the future of our country. We also need the Government to articulate what they intend to do and how they will engage and assist business people in local communities to build strong micro-economies around the nation.

“Our economy is not one homogenous entity consisting of only big business, but is made up of hundreds of small economies built around communities and industry sectors. If these micro-economies are healthy then the national economy will also prosper,” Mr Strong concluded.

www.cosboa.org.au

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