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Ai Group comment on potential Labor SME tax repeal

"The unfortunate confirmation that if elected Labor would increase taxes on small and medium-sized businesses with turnovers of between $10 and $50 million a year, ignores the realities of the competitive environment facing Australian businesses and their workforces," Ai Group Chief Executive, Innes Willox, said today.

"While reducing the company tax rate for these businesses means less revenue is collected from these businesses and their shareholders, these retained funds will be used for investment, employment and growth. This will in turn deliver a bigger tax base and drive productivity gains and growth in household incomes.

"The decision adds to the risks that businesses and their workforces face in Australia over the continually changing and unpredictable policy landscape they have to navigate.

"Politics aside, it makes no sense to raise taxes on these SMEs but good sense to develop and deliver a positive pro-business and pro-employment agenda," Mr Willox said.
 

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Tony Melville – 0419 190 347