Cannot plan with certainty, cannot employ with confidence
June 26, 2018
The ALP has almost recognised the $10m threshold for determining small business tax rates. That would be most welcome and would send certainty to over 2 million businesses in that group. This could result in more investment and increased job security for employees of these businesses.
Peter Strong CEO of COSBOA said today “We do however need the tax cuts to extend to businesses with up to $50m turnover and eventually beyond. If the tax cuts are maintained as per the current schedule there will be a better chance that casual employees can become permanent or part time become full time as a result of extra investment capital and extra certainty.
And the biggest problem is the lack of certainty. It is very difficult to decide to make a person permanent if you aren’t sure that the tax conditions will stay the same after the election.”
Mr Strong added ‘we have been through this scenario before when Joe Hockey, in his first budget, removed tax provisions implemented by the Gillard government and back dated those changes. We were extremely critical of that decision. We had one adviser tell us that small business people should have predicted the winner of the election a year earlier. It seems that some politicians are wanting small business people to be psephologists as well as tax experts, IR experts, safety experts and all the rest.”
COSBOA knows there is enough uncertainty in the world without extra concerns being raised for political rather than economic reasons. A business person needs certainty to write business plans, manage risk and employ people. There is never guaranteed certainty in business but there should be less uncertainty
Mr Strong also added “a person could own two service stations and employ 12 staff and still turn over $16m. We know the amount of $50m is not too high. Certainty is the friend of a good business plan and uncertainty is the friend of stress and worry. Let’s get as much certainty as we can into the business world and confirm the tax rate for businesses.”
COSBOA has always beleived that there were two things certain in life - death and taxes. But it seems even taxes are now uncertain.