Scamps’ serious push to cut taxes for 33,000 Northern Beaches small businesses

The Federal Member for Mackellar Dr Sophie Scamps is proposing to cut tax bills for small businesses across the country with a tax-free threshold of $20,000. This would create tax savings of up to $5,000 a year for eligible businesses. In calling for the tax cut, Dr Scamps said, “It’s clear small businesses are well overdue for a boost. Productivity has stagnated in Australia since 2016, and nearly 50% of small businesses are not breaking even.”

This announcement comes on the back of 18 months of work by Dr Scamps and her team listening to local business owners on the Beaches. “My team and I have been out and about, door knocking businesses here on the Northern Beaches for many, many months,” Dr Scamps said. “I’ve heard repeatedly how hard the past few years have been for local business and wanted to ensure they are aware of all available supports.”

Not only has the cost-of-living crisis driven down consumer spending, but the cost of doing business has also risen quickly with increasing rents, insurance, interest rates and energy costs, a double hit for business. The proposed tax cut also follows on from Dr Scamps’ Mackellar Small Businesses Survey which found 86 per cent of respondents identified increasing operating costs as their top concern.

“I have listened to these concerns and developed a policy that cuts company tax for small business by up to $5,000 a year,” Dr Scamps said. “Small business is critical to the Beaches not only because they are the backbone of our economy and create local jobs, but they are the heart of our communities. These people are our friends and neighbours, often the people we see every week or even every day.”

Businesses that have an annual turnover less than $10 million dollars would be eligible for the tax-free threshold. Instead of being spent on tax, the $5000 saving could be spent on innovations and efficiencies to grow the business. Dr Signe Steers, who recently opened an audiology practice in Forestville, told the Tawny, “I would use the savings to invest in balance diagnostic equipment to help with vertigo.” And a local butcher said he’d invest in energy efficient equipment and fridges to save on energy bills.

“We need to get serious about supporting small business,” Dr Scamps said. “The Coalition’s proposed policy to reimburse small business owners for taking long lunches would do little to boost productivity. I haven’t met many small business owners who have time for a long lunch these days.”

Dr Scamps’ proposed tax-free threshold is backed by the Council of Small Business Organisations Australia which has long called for the tax burden on small businesses to be reduced. And Reserve Bank of Australia research found that company tax cuts are more effective than instant asset write-offs in promoting reinvestment, innovation and growth in small business.

Dr Scamps has a strong track record supporting lower taxes, which includes voting in Parliament to lower income tax for everyone during the cost-of-living crisis, not just those in the top income bracket. Dr Scamps is also leading the charge with her Independent cross bench colleagues to cut red tape for small businesses by changing the definition of small business from 15 employees to at least 25, something that is strongly supported by the Australian Chamber of Commerce and Industry.