Dutton’s small business expenses plan wins support from Hospo NT

A new Coalition plan to rebate small business hospitality expenses has won support. Read who’ll benefit.

Opposition leader Peter Dutton. Picture: Brendan Radke

The organisation representing the Northern Territory’s hospitality sector has welcomed a new federal Opposition measure for business expenses.

Opposition Leader Peter Dutton last week announced an election policy that would introduce a tax deduction for small businesses to help meet hospitality expenses.

Under the Coalition plan, businesses with a turnover of up to $10m 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.

Hospitality NT chief executive Cathy Simmonds

Alcohol is excluded from the measure, which will initially be budgeted for two years if the Coalition wins office at this year’s federal election.

Hospitality NT chief executive Cathy Simmonds said the new policy could deliver benefits to the Territory’s hospitality industry.

“The change is designed not only to offer a tax break to all small businesses, but also boost spending in hospitality venues,” Ms Simmonds said.

“The Australian Hotels Association has welcomed this policy proposal, having advocated strongly for changes to fringe benefits tax for a number of years.

“Hospitality NT is supportive of policy settings that not only will encourage greater spending in pubs, restaurants and cafés, but also promises tax relief for all small to medium businesses, including our members.”

Peter Dutton in Perth. Picture: NewsWire/ Sharon Smith

AHA chief executive Stephen Ferguson said the organisation had spent years pushing for FBT relief for hard-pressed small businesses and their workers.

“This policy proposal by the Coalition is a win for common-sense – especially during a cost of living crisis,” Mr Ferguson said.

“Why shouldn’t a boss be able to take his hardworking team down to the pub and shout them a meal and use it as a deduction? Everyone wins.

“The current structure of the FBT means the boss cannot take their workers to a hotel, club, or restaurant at the end of the week as a reward without the business and worker being hit with additional taxes.

“Of course it’s a different story for the big end of town – which has work arounds including fully catered in-house board room lunches and baristas – something a family owned business and their workers don’t have the privilege of doing.

“It’s great to see the Coalition has listened and supports our proposal.”