Treasurer Joe Hockey is consulting with the tax office to make sure small businesses aren’t disadvantaged by changes to tax initiatives resulting from the scrapping of the mining tax.
Small business was angered by the pact struck by the Abbott government and mining billionaire Clive Palmer that deals away tax concessions aimed at small business that were tied to the minerals resource rent tax (MRRT) being abolished.
Under the deal, the loss carry-back measure that allows companies to offset previous profits with future loses and an increased instant asset write-off have been scrapped.
The Council of Small Business of Australia says the decision will affect cash flows, confidence and the ability to write a business plan.
“It’s a worry about Clive Palmer not understanding small business,” chief executive Peter Strong told reporters in Canberra on Wednesday.
Independent senator Nick Xenophon described the decision as a kick in the guts for small business, while some of the biggest and most powerful mining companies in the country were effectively getting a huge tax windfall.
The mining tax was supposed to have been abolished late last year, which would have meant these tax initiatives would have ceased on January 1, 2014.
Mr Hockey said he was consulting with the tax office about that timing now the mining tax has been abolished.
“I want to make sure that we don’t create any disruptive behaviour in relation to this matter,” he told reporters in Canberra.
He expects to make an announcement before the legislation receives royal assent.
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The post Hockey consulting on SME taxes after MRRT repeal – Courier Mail appeared first on Evan Vitale Consulting Blog.
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