Labor and Coalition Clash Over Cost of Business Lunch Tax Deduction Proposal
Treasurer Jim Chalmers claims the Coalition’s plan could cost up to $10 billion annually, while Opposition Leader Peter Dutton defends it as a boost for small businesses and hospitality.
- The Coalition has proposed allowing small businesses to claim up to $20,000 annually in tax deductions for business meals and entertainment, excluding alcohol, to support the hospitality sector.
- Treasury analysis, released by Treasurer Jim Chalmers, estimates the policy could cost between $1.6 billion and $10 billion annually, depending on business uptake.
- Opposition Leader Peter Dutton argues the plan will aid small businesses recovering from economic challenges and increase productivity by encouraging networking.
- The Albanese government criticizes the policy as fiscally irresponsible, claiming it would burden taxpayers without clear offsets to fund the initiative.
- Shadow Treasurer Angus Taylor has promised transparency on policy costings before the next election but has accused Labor of politicizing the public service by using Treasury to attack the opposition.
The Sydney Morning Herald 
The Guardian 
Australian Broadcasting Corporation 