A Dutton Coalition Government would introduce a tax deduction of $20,000 for business-related meal and entertainment expenses.
It would be a win for the wine industry where hospitality is a big part of doing business.
A ‘free’ long lunch would also be a major boost for the hospitality industry which the wine industry relies upon heavily to sell wine.
There is just one catch – alcohol will be excluded from the policy.
Wineries will still be able to serve alcohol at meals of course, but only the food component will be able to be written off.
“This is 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,” Opposition Leader Peter Dutton says.
“It will help businesses recover from a horrible period under three years of Labor.
“Cafes, restaurants, clubs and pubs are the lifeblood of so many local economies around the country.
“Hospitality is a huge part of the economy and yet like so many businesses at the moment, they are hurting under Labor.
“Skyrocketing electricity, gas and insurance prices.
“A local coffee shop creates important local jobs, but they are also spending money buying supplies from other local businesses.”
Shadow Treasurer Angus Taylor said the new deduction 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.
Small businesses with a turnover of up to $10 million will be eligible.
The measure will run for an initial two years and be exempt from Fringe Benefits Tax.
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