Finally the campaigning is over and the country will elect the next government today. But what, from a business point of view, are the parties promising? This handy guide is here to help.
The Coalition will cut the small business company tax rate to 27.5 per cent for small businesses with a turnover less than $10 million, increase the unincorporated tax discount from 5 per cent to 8 per cent, capped at $1000 for small businesses with a turnover less than $5 million, and extend access to the instant asset write-off so that small businesses with a turnover less than $10 million can instantly deduct every asset worth less than $20,000. Labor supports the cut to 27.5 per cent but will not extend it to big businesses.
The Coalition will repeal the Section 46 of the Competition and Consumer Act and replace it with a new provision that prevents firms with substantial market power from engaging in conduct that has the purpose or likely effect of substantially lessening competition. The Greens have sided with the Coalition while Labor has sided with big business in opposing the change.
From July 2017 the Coalition will extend the 27.5 per cent company tax rate to businesses with a turnover of $25 million, and then in annual steps to $1 billion by July 2022. From 2024 the 27.5 per cent tax rate will be progressively reduced to 25 per cent by July 2026. Labor and the Greens oppose the extensions.
The Coalition will reintroduce the Australian Building and Construction Commission. Labor has voted against re-establishing it twice. The Coalition says it will leave a decision about Sunday penalty rates to Fair Work Australia. Labor will intervene in the case before the Commission to argue the existing penalty rates should be maintained but will accept the umpire’s decision.
After completing trade deals with China, Japan, Korea and the Trans-Pacific Partnership, the Coalition will pursue further deals including with India. Labor will also pursue trade agreements but, with the Greens, will reject those that contain so-called investor-state dispute settlement clauses. The Greens would protect in law Australia’s ability to undertake labour market testing, require parliamentary oversight of negotiations and submit draft deals to the Productivity Commission for analysis.
The Coalition has promised to cut carbon emissions to 26 per cent to 28 per cent below 2005 levels by 2030. Labor has promised 45 per cent below 2005 levels by 2030 and zero net emissions by 2050. It will ensure that 50 per cent of electricity is sourced from renewable energy by 2030, and will pay the dirtiest brown coal-fired power stations to close. It will replace the Coalition’s Emissions Reduction Fund with an emissions trading scheme.
The Greens would cut carbon emissions by as much as 50 per cent by 2025 and aim for zero net emissions by 2040. They would impose a thermal coal export levy of $3 per tonne.
The Coalition is planning to freeze payments to doctors who bulk bill until 2020. By that time the incomes of bulk billing doctors will have fallen 15 per cent compared to other incomes. Labor will end the freeze on January 1, 2017. The Coalition will will also remove bulk-billing incentives for pathology services and cut those applying to diagnostic imaging services. Labor will reverse the cuts.
Courtesy : smh.com.au