Footy tickets, movies and golf covered in Coalition’s major tax shake-up; strip club meetings banned

New details about the Coalition’s flagship tax promise for small business can be revealed – and you may be surprised by what’s covered.

Small businesses will be able to claim tickets to footy matches, a round of golf and a trip to the movies under a new Coalition tax deduction policy, but meetings at strip clubs have been ruled out of the Opposition’s flagship trial.

The Coalition has insisted spendings at brothels and strip clubs will be banned under their scheme, announced on the weekend, which would enable tax deductions for small businesses claiming work-related meal and entertainment expenses up to $20,000.

The two-year trial, which will only apply to businesses with an annual turnover of up to $10 million, also excludes alcohol, with the Coalition insisting existing checks and balances at tax time would also net dodgy receipts for venues excluded under the scheme.

Under the Coalition’s plan, small businesses will be able to claim tickets to footy matches. Picture: Tom Parrish

The policy, however, would cover taking prospective or existing clients to football matches, a round of golf, or the movies, while a business-focused coffee meeting with employees would also be included.

Treasurer Jim Chalmers called the Coalition’s proposal a “farce” and claimed the scheme would be ripe for rorting.

“They will make workers and families worse off to pay for tax breaks for long lunches and golf days for bosses,” he said.

“It’s no wonder Peter Dutton and Angus Taylor have no credibility on the economy with stinkers like this. They’re all about waste and rorts and we’re all about responsible economic management.”

Shadow Treasurer Angus Taylor said the scheme would be a boost for small businesses. Picture: NewsWire / Martin Ollman

Shadow Treasurer Angus Taylor said the policy, which has been welcomed by business peak bodies, would have a “modest” impact on the budget while enabling small business to access hospitality and events usually only afforded by larger companies.

“Small business has taken a huge hit under three years of Labor. The Coalition is committed to helping those businesses survive and thrive if we’re returned to government,” he said.

The costings of the policy would be released closer to the election, Mr Taylor said, adding it had been formulated to have a “modest” impact on the budget.

“This new policy is a fiscally responsible down payment on our commitment to lower, simpler, fairer taxes and rebuilding Australian businesses,” he said.

Treasurer Jim Chalmers. Photo: Steve Pohlner

“It has been carefully targeted with a modest impact on the budget. The underlying cash balance impact is not of a scale that it would add to inflation and the Coalition’s broader fiscal settings will be more modest than Labor’s which will put downward pressure on inflation.”

Council Of Small Business Organisations Australia (COSBOA) CEO Luke Achterstraat said the policy wouldn’t introduce a “taxpayer-funded lunch” – just a tax deductible one.

“As long as it’s driving new business and client retention, or rewarding staff and employees, we welcome the policy,” he said.

“Any policy that keeps more income generated by a small-business owner in their own pocket is a good thing.”