Labor calls Coalition’s tax breaks for business lunches a ‘farce’ as Dutton fails to clarify cost
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Policy pitched as incentive for businesses to spend more at local venues amounts to using taxpayer money ‘to shout your boss steak tartare’, government says. The Labor government has ridiculed the Coalition’s plan to allow small businesses to claim tax deductions on meals and entertainment, saying it amounts to using taxpayer money to “shout your boss steak tartare”.
Meanwhile, the opposition leader Peter Dutton has declined to say how much the idea would cost – or exactly what would be covered. The Coalition has confirmed strip clubs and adult entertainment venues will not be eligible for tax write-offs under their plan to allow tax deductions of up to $20,000 for meal and entertainment expenses for small businesses. However, the Coalition has conceded hospitality or food at sporting matches or at a round of golf with clients would be permitted.
Senior Labor ministers have called the idea a “farce” and claimed the policy would be a perk for bosses. “How will they make sure that it’s not rorted? They’re making it up as they go along,” the treasurer, Jim Chalmers, claimed. The Coalition, which is under pressure to announce more substantial policy ideas as the election looms, unveiled the deduction on Sunday. Taylor said it would apply to “dining and entertainment provided to clients, vendors, and employees”. In a speech, Dutton gave examples of a business owner taking their employees out for a pub lunch to “celebrate a week of hard work”, a sales event, or a team-building exercise.
