Leader of The Nationals Matt Canavan, Member for Herbert Phillip Thompson and Member for Dawson Andrew Willcox have met with business leaders in Townsville, amid rising concerns over Labor’s broken promises Budget and more taxes on local businesses.
Mr Thompson said small businesses are deeply concerned about the powers Labor’s Treasurer has given to himself, which will tax businesses more and unilaterally change the goalposts.
“Small businesses are telling me they are angry about Labor’s broken promises and fear it could get worse,” Mr Thompson said.
“The Treasurer can now decide what he taxes, when he taxes – which begs the question, what’s next?”
It comes amid revelations, Treasurer Jim Chalmers will have the power to choose which assets keep capital gains discounts and whether a home counts as a ‘new build’.
“Minister Chalmers’ potential use of ‘Ministerial discretions’ for the biggest tax grab in decades is just plain wrong,” Mr Willcox said.
“The Treasurer will even have the power to change the types of assets and the individuals impacted by tax changes, once legislation is passed.”
Under Labor’s changes, up to 47 per cent tax on gains will apply for businesses. Labor will also charge a 30 per cent minimum tax on discretionary trusts, while a 50 per cent capital gains tax discount will be replaced with CPI indexation.
Engineering Nem Group general manager Aymon Vagulans said Townsville small businesses are facing many challenges, including high energy costs, as well as fuel, freight and supplier costs.
“Our compliance burden continues to grow, forcing us to spend time on admin instead of growing the business and serving customers,” Mr Vagulans said.
“Small businesses are the backbone of local communities and so government policy should support those goals by creating a stable, predictable environment that encourages growth and investment.”
Harcourts principal Ben Kingsberry said the Budget is hurting not just businesses, but investors and also the younger generation including renters.
“Already, and largely as a direct result of the Budget changes, we are seeing landlords become much more focused on maximising their rental income,” Mr Kingsberry said.
“In many instances, landlords that ordinarily might have renewed leases at below market rates are feeling the need to increase to market rent.
“The theory that what’s bad for investors is bad for renters is proving significantly accurate and we expect to see rents rise over coming months.
“Within the sales space we have also seen a significant reduction in investor activity, which is going to flow on to even tighter levels of supply and increased rents. We are simply punishing tenants in a revenue raising exercise that is going to fail on both the revenue raising and the equity goals.”
Senator Canavan said a future Coalition Government would immediately stop all of Labor’s bad taxes.
“Labor’s broken promises Budget betrays the trust of Australians and will see regional Australians pay more,” Senator Canavan said.
“The Coalition will restore common sense and stop all of Labor’s changes made to the capital gains tax, as well as negative gearing and discretionary trusts.”
