Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
New tax will cripple small business

Download PDFDownload PDF

Media Release G e o ff P rosser M.P. FEDERAL MEMBER FOR FORREST

Shadow Minister for Small Business, Housing an d Customs.

5 May 1992


The Coalition's decision to oppose the Government's new Superannuation Guarantee Levy will save thousands of small businesses from bankruptcy.

The new superannuation levy is a tax based on a business' payroll. In fact, it is nothing but a new Federal payroll tax which will cost small businesses nearly $22 billion over the next 9 years.

It will be small business' biggest labour cost next to wages and, in some cases, will virtually double the cost to business of existing State payroll taxes.

The levy will also draw all small businesses, including those who currently do not have to pay payroll tax, into its net.

At a time when small business is still shell-shocked from the worst recession in 60 years, this Bill launches yet another barrage of new tax costs and red tape.

The financial costs and administrative burden of the levy alone will force an estimated 60,000 to 100,000 people out of work. In addition, it will push a large number of struggling small businesses over the brink into bankruptcy.

In spite of this, the Treasurer is pushing ahead with the new super levy, even though his own Department has admitted that it can not justify these draconian measures on the basis of any significant long term reduction in pension payments or increase in national savings.

In stark contrast to the Government's heavy-handed treatment of small business, the Coalition recognises that they desperately need fewer taxes and lower operating costs.

As such we are committed to abolishing seven taxes on business including payroll tax, fuel excise and Wholesale Sales Tax and providing more generous exemptions to the Capital Gains Tax. We will also provide a dramatic boost to demand for the goods and services offered by small business by slashing income tax rates.

ends Canberra

CONTACT: Karen Kuschert (06) 277 4717 or 286 5006(h)

* The Superannuation Guarantee Levy Bill in being debated in the House of Representatives tonight. ______ —