Abbott promises 1.5pc small business tax cut
CANBERRA: In order to reclaim his leadership with a promise to change direction on policy, Australia’s Prime Minister Tony Abbot has guaranteed a 1.5% tax cut for small businesses, that would be applicable from July this year.
Reeling from the crushing defeat of the Liberal-National Party in Queensland and from devastating federal poll numbers, Mr. Abbott has told the National Press Club he understood that people expected more from the government.
“I’m not here to defend the past, I’m here to explain the future,” Mr Abbott said.
He warned colleagues against changing leader, saying that would be “to give into fear and make the situation worse’’.
He also appealed to the public.
“You elected us, you elected me to be an adult government focused on you, not on ourselves.’
He stressed that in troubling times in terms of national security and the global economy, the government had to persist with its reform agenda, especially if the budget were to be rebalanced.
“We can’t wait for a crisis like Europe to address this problem because the solution will be much worse than solutions today.”
As forecast, he dumped entirely his paid parental leave scheme, finally admitting after years of pleading by his colleagues that, in terms of productivity, the money would be better spent on keeping childcare affordable.
“We sought the advice of the Productivity Commission and I have listened to the feedback from my colleagues and from mums and dads around Australia – and they have said that, with our current budget constraints, the better focus now is on childcare if we want higher participation and a stronger economy,’’ he said.
“So a bigger, better PPL scheme is off the table.”
Mr Abbott spruiked a childcare package would be front and centre of the May budget and gave notice of a jobs and small business package as well.
