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Budget 2005: Government misses its chance to give home-based businesses a break.



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MEDIA RELEASE

TONY BURKE MP Shadow Minister for Small Business Member for Watson

11 May 2005

GOVERNMENT MISSES ITS CHANCE TO GIVE HOME-BASED BUSINESSES A BREAK

Many home-based businesses with high input costs have missed out on much needed tax relief after the Howard Government last night failed to flag amendments in its Entrepreneurs’ Tax Offset to benefit business operators selling products.

Shadow Minister for Small Business, Tony Burke today criticised the Howard Government for failing to reform the 25% Entrepreneurs’ Tax Offset so it would help both home-based businesses who sell products and those who provide services.

“The Minister for Small Business has shown that she still does not understand home-based businesses,” said Mr Burke.

“She refers today to the benefits of the tax offset citing a small business operator who has an annual turnover of $40,000 and a net income of $35,000, would receive a tax offset of $1, 668.

“This shows the Howard Government still does not understand that not all home-based businesses are run by consultants.

“Home-based businesses which sell products such as Nutrimetics or Enjo get hit both ways because the offset is based entirely on turnover.”

“First they have to carry the burden of paying high input costs, then the fact that they are carrying that burden becomes the very reason they miss out on the tax discount.”

Media Contact: Maria Iannotti 0408 274 696 or (02) 9554 3808