PRIM Minister Scott Morrison’s move to fast forward small business tax cuts is a game changer, according to Bowman MP Andrew Laming.
The government move to bring forward a $29.8 billion tax cut for millions of small employers is aimed at boosting investment and wages.
It means small companies will get their tax rate cut to 25 cents in the dollar five years earlier than planned.
It comes as the government and opposition sharpen their messages for the forthcoming election, with Mr Morrison touring conservative Queensland seats in danger of falling to Labor.
Mr Laming said all but a handful of Redland businesses had turnovers below $50 million annually and the changes would see their tax rates fall to 25 per cent from 28.5 per cent by 2021-22.
Labor’s Senator Chris Ketter said a Bill Shorten government would deliver the same tax cuts for small and medium businesses as the coalition.
“Labor has always been a friend of small business,” he said.
Senator Ketter said the difference between Labor and the Coalition was that his party had costed its policies.
“We’ve budgeted for them and we’re transparent about where the money is coming from,” he said.
“While the coalition creates budget black holes, Labor will deliver on our promises in a fiscally responsible way and without cutting funding to local schools and hospitals.”
Mr Laming welcomed Labor’s support.
“A 25 per cent tax rate can make all the difference,” he said. “Small business might otherwise close and medium business might otherwise relocate operations to Asia.
“Labor forgets all this when they oppose helping Aussie business tax-cuts. This time it’s nice to have their support.”
Stradbroke Flyer spokeswoman Tanya Groom said the government tax cuts would mean being able to more rapidly respond to maintenance and repairs, having stock and skills onsite and removing the pressure to increase fares.
Mr Laming said about 6000 companies and 30,000 employees nationally stood to benefit.
“Benefits of competitive tax rates will allow more investment, employment of more workers and higher wages,” he said. “The measure means $3.2 billion less tax collected and more direct investment in the economy.”
