Greens look to support small business tax cut and will push for more

The Australian Greens today announced the package of small business measures they want to see in the Federal Budget.

Greens spokesperson for Small Business, Senator Peter Whish-Wilson said “Today the Greens have announced a three-pronged approach to helping small businesses in Australia.

“We propose a small business tax cut of two percent, raising the instant asset write-off threshold to $10,000 and restoring the provisions that allowed companies to carry-back up to $300,000 as a refundable tax offset for up to two years.

“What the Australian Greens are proposing is greater than anything the Government has discussed to date.

“When the Abbott Government axed the mining tax they also brought down an axe upon small business by removing provisions that supported them.

“If the Government is looking to use the upcoming budget to undo this damage to small business, then the Greens could provide the pathway through the Senate to pass a comprehensive package of support,” he concluded.

Australian Greens leader Christine Milne said “We can build a more caring society by giving small business a leg up. This is where the jobs and innovation are at.

“The Greens are open to a two-tiered company tax system if the Abbott government is willing to help shift the burden from small business to big business.

“We have to shift the burden and raise revenue from those who can afford it – the big end of town.

“If the Abbott government wants to shift tax burden from small business to big business, the Greens are open to it as part of a comprehensive package,” she concluded.

NB: Peter Strong, executive director of the Council of Small Business of Australia came out in support of these measures today:

Greens policy for Small Business

The Greens propose a three-pronged policy to support Australian small businesses:
• A 2% tax cut for small businesses
• Restoring and increasing the instant asset write-off threshold to $10,000
• Restoring the loss carry-back provisions

Shifting the tax burden to Big Business

The Greens will cut the tax rate for small business to promote the vitality of the sector and to encourage more Australians to enter into small businesses. The Greens want to see the rate cut from 30 per cent to 28 per cent for companies with turnover of under $2 million.

A small business tax cut will:
• Free up extra income for investment, innovation and business expansion.
• Acknowledge the administrative costs for small business.
• Encourage growth in the small business sector.

Restore the instant asset write-off threshold and loss carry back provisions

The Abbott Government axed the asset and income management provisions designed to help small business when they repealed the Mining Tax package. The Greens will work to restore these measures to encourage investment in productive assets and to help manage ‘lumpy’ cash flows.

The Coalition slashed the instant asset write-off threshold small business from $6,500 to $1,000. The Greens want the instant asset write-off threshold for small business raised to $10,000, as recommended by the Henry Tax Review. By increasing the threshold to something other than a nominal amount The Greens acknowledge the risk small businesses take on when investing in their business.

The Government also abolished provisions that allowed companies to ‘carry back’ up to $300,000 as a refundable tax offset for up to two years. This measure is particularly beneficial to small businesses with oscillating in year-on-year incomes. The Greens will work to restore this measure to support businesses that are viable over the long-term but that can experience short-term difficulties with cash flow.
Greens spokesperson for Small Business, Senator Peter Whish-Wilson