CANBERRA: The announcement, to be made by Tasmanian Greens senator and former banker Peter Whish-Wilson, includes a new 2 per cent tax cut for small businesses, restoring and increasing the instant asset write-off to $10,000 and restoring loss carry-back provisions.
The Australian understands Senator Whish-Wilson will describe his party’s policy as “greater than anything the government has discussed to date”.
“When the Abbott Government axed the mining tax they also brought down an axe upon small business by removing provisions that supported them,” Senator Whish-Wilson will say.“If the government is looking to use the upcoming budget to undo this damage to small business, then the Greens could provide the pathway through the Senate to pass a comprehensive package of support.”
Tony Abbott has promised small businesses a more modest 1.5 per cent reduction in the company tax rate from 30c to 28.5c in the dollar from July 1, creating a two-tier company tax rate.
The government is also considering reversing small business benefits it abolished last year. They included vehicle accelerated depreciation for a saving of $550 million over four years and reduced the instant asset write-off threshold from $5000 to $1000, saving $3.2 billion over the same period.
The government is expected to apply its tax cut to businesses with profits of less than $5m, while Senator Whish-Wilson’s plan will be targeted for companies with turnover of under $2 million.
The Greens’ 10 senators, when combined with the Coalition’s 33 votes, provide more than enough votes to pass any bill through the Senate without need to negotiate with Labor or the fractious crossbench.
The Greens were heavily criticised last year for refusing to pass many of the Coalition’s contentious budget measures, including reindexation of the fuel excise which it opposed because the funds would be used to support new road projects.
Joe Hockey last week said his second budget, due in three weeks, will contain “a package of measures that are fully funded, that are focused on growing the Australian economy”.
