A proposal to cut the corporate tax rate for small businesses should be guaranteed by all political parties, Real Estate Institute of Australia (REIA) CEO Ms Amanda Lynch said earlier this week.
Ms Lynch, who is also the deputy chair of the Council of Small Business of Australia (COSBOA), made the comments after her appearance before the House Economics Committee’s public hearing on the Mineral Resources Rent Tax Bill 2011.
The Minerals Resource Rent Tax (MRRT) is a tax on the economic rents miners make from taxable resources, including iron ore, coal and some gases. The purpose of the hearing was to discuss the benefits of the re-distribution of wealth from the tax.
The REIA said it was one of only three groups chosen to represent small business at the hearing alongside the Council of Small Business of Australia (COSBOA) and the Business Enterprise Centres.
Ms Lynch said she welcomed the reforms being proposed, including a one per cent reduction in company tax; the accelerated initial deduction for motor vehicle permitting small business to immediately write off up to $5,000 and depreciate the remainder of the value at 15 per cent in the first year and 30 per cent in following years; and a staged increase in superannuation from nine to 12 per cent.
But she wanted assurances the proposals would become law, regardless of which party was in power. “It is important that the reduction in the corporate tax rate for small business is guaranteed by all political parties, so the small business sector can afford to deliver the government’s intention of improving the superannuation earnings of employees,” Ms Lynch said.
“This consultation with peak organisations representing small business is the first step in acknowledging the importance of small business to the economy – the nation’s largest group of employers.”