The long, lazy business lunch, where much of our nation’s new business ideas have been spawned, may be making a return in the near future. 

If elected in the federal election later this year, Opposition Leader Peter Dutton has announced that small businesses will be able to claim an annual tax deduction of up to $20,000 for meal and entertainment expenses.

Builders with turnover up to $10 million would be eligible for the tax deduction which would apply to meal and entertainment expenses that have a connection with business activity and income, including dining and entertainment provided to clients, vendors, and employees.

For many builders it will be excellent motivation to pick their favourite local, round up the team, divert the phone, and settle in for some camaraderie and lazy brainstorming. 

Now it won’t pay for your grog, but those beers will seem a lot cheaper when the rest is deductible. 

Opposition Leader Dutton called it a win for the small business spending the money on their staff or clients, and a win for the hospitality venues who will see an increased spend in their businesses. 

 “Cafes, restaurants, clubs and pubs are the lifeblood of so many local economies around the country.”

The Coalition hasn’t provided any costings for the initiative – theoretically if all of Australia’s 2.5 million small businesses cashed in on the deductions taxpayers would forgo about $12.5 billion a year in lost revenue. 

Federal Treasurer Jim Chalmers has called it “unserious” policy – while those eating the  parmis at the local pub may well call it “seriously” fun.

Click here to read the AFR story from last week.

Author: The Good Builder

The Good Builder is a media platform that provides news and insights for Australia’s home building industry. From exclusive stories and curated insights to bold industry perspectives, we deliver the news and updates that keep builders, suppliers, and the entire home building industry inspired and ahead of the curve.