The Australian Hotels Association (AHA) has welcomed today’s policy proposal for the Coalition, which would introduce a capped tax deduction for small businesses of $20,000 for business-related meal and entertainment expenses.
This Fringe Benefit Tax (FBT) relief for small business and their workers is something that the AHA says it has spent years looking for.
“This policy proposal by the Coalition is a win for common-sense – especially during a cost of living crisis,” said Stephen Ferguson, AHA National CEO.
“Why shouldn’t a boss be able to take his hard-working 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.”