Opposition Leader Peter Dutton promises $20,000 tax deduction for small business lunches

There’s no such thing as a free lunch, but the Coalition will introduce tax deductible ones for small businesses if it wins the impending federal election.

Opposition Leader Peter Dutton announced the new cost-of-living policy to LNP members in Brisbane on Sunday, promising a tax deduction of up to $20,000 for dining and entertainment expenses for eligible small businesses.

Businesses with a turnover of less than $10m would receive the tax break, Mr Dutton said, and it would cover spending on clients and staff.

The Opposition Leader, who is fronting up against Labor Prime Minister Anthony Albanese, said the policy would boost Australia’s ailing hospitality sector.

“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,” he said to the Party faithful on the weekend.

“It will help businesses recover from a horrible period under three years of Labor.

“Small business is in our DNA as Liberals and Nationals and we want to help those businesses survive Labor’s time in office and thrive when we get back into government.”

The policy means a business would still pay for the lunch or entertainment expense up front, but could then claim the expense later on to reduce their tax bill.

In effect, taxpayers would pick up part of the tab for the lunches.

The policy would also be exempt from the fringe benefits tax, which is a tax employers pay on benefits they provide to employees.

The deduction does not cover alcohol, The Coalition said.

Alongside its lunches policy, the Coalition has pledged to lift the instant asset write-off threshold from $20,000 to $30,000 for small businesses.

“We will be unashamedly pro small business, delivering reforms to help the small business sector grow and get back on track,” the Coalition states in an election document spelling out its priorities.

“This is why we have already committed to extending the value of assets eligible for instant write-off to $30,000, for firms with annual turnover up to $10m.

“We will implement a pro small business agenda focused on saving time and money and delivering less government intervention and greater business freedom.”

Mr Dutton delivered the policy alongside Queensland Premier David Crisafulli and LNP candidate for Ryan Maggie Forrest.

The major parties are targeting the Brisbane seats of Ryan, Griffith and Brisbane, all held at present by The Greens.

At the 2022 election, the LNP lost Ryan, which takes in the city’s inner and outer west, and Brisbane, which takes in its inner northern areas, while Labor lost Griffith, which takes in the suburbs immediately south of the Brisbane River.