The 2018 Budget was announced in May, with the government planning to introduce a seven-year tax cut package. To go ahead, the tax cuts must survive multiple elections and attract the support of the Senate before passing into law.
Among the cuts includes the move back into a lower tax bracket of people earning between $87,000 and $90,000, who, under the changes, will pay 32.5 per cent instead of 37 per cent in tax, a saving of about $10 a week in the first year.
National Retail Association (NRA) CEO Dominique Lamb said several announcements in the budget would assist small business, and enable consumers to spend more money.
“The NRA is also pleased with the Treasurer’s announcement to extend the instant asset write off that allows businesses with a turnover of up to
$10 million a year to claim a tax deduction for equipment costing up to $20,000.
“This deduction has made investing in new equipment easier for mum-and-dad small business owners and we are certain that it will continue to be beneficial to retailers,” she said.
Restaurant & Catering Australia (R&CA) also welcomed announcements in the 2018 Federal Budget, praising measures designed to provide businesses with certainty and to encourage growth across high-priority sectors, such as hospitality.
The Budget promised an additional $250 million to the Skilling Australians Fund and provided clarity on the refunds businesses can claim when sponsoring overseas workers.
R&CA CEO Juliana Payne said, “With the commencement date of the Skilling Australians Fund now confirmed, it is critical that projects supporting high-growth industries such as the café, restaurant and catering sector are prioritised as part of the projects delivered under this scheme across each of the states and territories.”
Juliana commended the government’s focus on tackling the black economy, and welcomed measures such as reducing the costs of accepting debit card payments and incentivising businesses to adopt non-cash forms of payments.
“We are pleased that the Government is finally taking decisive action on the scourge of the black economy, which unfairly penalises café and restaurant business-owners who do the right thing in abiding by their various regulatory and taxation obligations.
“The suite of recommendations included in the Black Economy Taskforce’s final report was developed in close collaboration with industry stakeholders, including R&CA, and we are committed to working alongside the federal government and other stakeholders to clamp down on the black economy in the hospitality sector,” she said.
However, Opposition Treasury spokesman Chris Bowen said the top 20 per cent of income earners would benefit most from Turnbull’s tax package, while there would be a significant increase in the number of people paying little or no tax at all.
He called for more policy detail from the government before committing to support the package.