Dutton proposes AU$20,000 tax break for small businesses

Australia's opposition leader, Peter Dutton, has proposed a plan to support small businesses by allowing those with a turnover under AU$10 million to claim tax deductions of up to AU$20,000 for meal and entertainment expenses, excluding alcohol. This initiative, which would run for two years and be exempt from Fringe Benefits Tax, aims to boost the hospitality sector and encourage local spending. Dutton emphasized that the policy would help small businesses recover from financial struggles exacerbated by rising costs under the current Labor government. While small business groups welcomed the proposal, concerns were raised about compliance and the potential for misuse of the tax deductions. In response, Prime Minister Anthony Albanese critiqued the proposal as lacking serious planning and cost analysis, suggesting it may not be a credible solution. The proposal is part of the Coalition's strategy to regain support ahead of the upcoming federal election, with Dutton hoping to reclaim lost seats.