Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Small business eyes on Senate tax vote



Download PDFDownload PDF

Leader of the Opposition

NEWS RELEASE BY JOHN HOWARD, MP L85/85

SMALL BUSINESS EYES ON SENATE TAX VOTE

The eyes of small business in Australia will be on the Senate this week as it decides the fate of the Government's tax proposal to ban the deductibility of all entertainment expenses.

If that proposal goes through many small businesses, not just restaurants, will be disastrously affected. .

The total prohibition of all entertainment expenses is unfair. Some entertainment expenses are legitimately involved in earning business income. The Government has displayed an extraordinary insensitivity to small business

in proposing a total ban. It will hurt small business and its employees more than anyone else. Larger corporations will absorb the change and of course the public sector will be completely unscaved.

The sensible course is to adopt the Opposition's amendment.

That amendment would eliminate abuses of the existing law but preserve deductibility of legitimate entertainment expenses. . ยท . .

That amendment can succeed if the Australian Democrats support it in the Senate. In the past the Democrats have professed a concern for small business. Now is their opportunity to demonstrate that concern by supporting the Opposition's amendment.

The Opposition has said from the time the tax package was unveiled that a total ban on entertainment expenses was wrong and went too far. Our amendment reflects that view.

It is to be hoped that the Senate supports it as the fate of many small businesses is at stake. - .

SYDNEY 24 November 1985

Parliament House, Canberra, A.C.T. 2600 Phone 72 6994