Proposed lunch tax deduction to hurt productivity, warns Eslake
Labor accuses the Coalition of using taxpayer money to ‘shout your boss steak tartare’, but the opposition says its policy will help the hospitality sector.
Official modelling shows Peter Dutton’s proposed tax deduction for small business lunches will cost less than $250 million as the Coalition moves to counter accusations its new policy is wasteful.
Mr Dutton said last Sunday that enterprises with a turnover of up to $10 million would be able to deduct up to $20,000 of “business-related meal and entertainment expenses” provided to clients, vendors and employees without incurring fringe benefits tax. The measure, which will last for an initial two years, excludes alcohol.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com
