Small business are still suffering the effects of Tony Abbott’s first Budget, with the deep cuts hitting the very economic confidence that keeps small business shop doors open.
It is clear that this Budget is more about saving Tony Abbott’s job than helping small business – as the Government belatedly recognises the damage that they’ve wrought on this important sector in our economy.
Labor recognises that small business is an important driver of jobs in our economy, and that the right assistance can strengthen the sector.
That is why Labor is broadly supportive of the measures that help small business recover from the massive hit to business and consumer confidence that has occurred in the 12 months since Tony Abbott’s last Budget.
The accelerated depreciation measure is in fact only a temporary reinstatement of a tax measures that Labor delivered in government, and Tony Abbott repealed upon coming to government.
We will examine the details closely in finalising our position.
One issue that Labor will pursue is short-sighted nature of the key components on the package – continuing accelerated depreciation for two years may serve Tony Abbott’s political objectives of getting to the next election, but it provides no certainty to companies that will be investing in 3 or 5 years’ time.
Small business needs certainty and a budget framed for their future.
This short-sighted Budget is all about Tony Abbott’s future.