A new pizza tax bill introduced by the Turnbull Government is being debated in the lower house, after the Opposition and some Greens argued it was unnecessary and unfair.
Key points: The pizza tax, which would apply to small businesses, was included in the Coalition’s “small business package” to reduce the tax bill of some businessesThe legislation is set to pass the Senate this week and is likely to be sent to the House of Representatives on ThursdayThe bill, which is being considered in the House, would require all businesses that employ more than 10 people to pay the tax or face being penalised, with businesses that have more than 100 employees and fewer than 10 employees paying an extra $1.25 per employee.
“I think that it’s pretty clear from the bill that this is about making sure that businesses that can pay their fair share of tax are going to pay their share of the tax,” Greens Senator Richard Di Natale said.
“That’s why we’ve included the pizza tax in the bill.”
The fact that you have a bill for $1,250 a week and we have a $500 tax bill, I think, shows that this bill has been written by the Government, that it has been given by the government and that it is in their interest to bring this forward.”‘
We’ve got a very big pie’Senator Di Natal said he thought the legislation was a “very good idea”, but questioned how it was being delivered.”
It’s a very good idea, but we’ve got an incredibly big pie to slice and cut, and we need to do that very, very, carefully,” he said.
Senator Di Nata says he’s concerned that the bill is being crafted in the “bully pulpit” of the “big boys club” of business, but he says he believes the bill will pass the House.”
They’ve got the power of the Government to do this, and I think that they have the power to do it and they will,” he told ABC Radio Canberra.
The pizza tax has been described as a “big business tax”, but the Government says it will not increase the amount businesses pay in tax, because it will only apply to those who are in the Australian restaurant industry.”
This is about reducing the cost of food, reducing the price of food and ensuring that small businesses are able to keep their doors open,” the Government’s statement said.
The bill would apply the tax to all businesses employing at least 10 people, and would require businesses to pay an extra 1.25 cents per employee, or $1 for each employee, for a total of $1 per employee on each person.
Businesses would have to have at least three employees to pay this tax, and all businesses would be required to have a minimum of three workers for every 100 employees.
The bill also includes the following provisions:Businesses will have to pay $1 in income tax every year for the first 10 years of their operation.
This will increase to $1 each year until a minimum amount of $5,000 is paid.
The tax would be payable on gross profits, not net profits.
A maximum of $200,000 in net profits per year would be taxed.
Business owners would have the right to deduct any tax they owe, but would only be allowed to deduct an amount of up to $25,000 per year, with a maximum of 50 per cent.”
There’s a lot of exemptions and deductions, which you can read about in the legislation,” the statement said, “and I think the bill makes it very clear that these are all small businesses that don’t need the extra burden of having to pay a large percentage of the income tax.
“What are the main concerns?
The Government’s argument has been that small business will be able to continue operating under the new law without having to increase their workforce, but there are some concerns about this provision.”
Small businesses are already struggling under this new tax, especially the young, who have to work longer hours, which means they have less to spend,” the Statement said.
The legislation has been criticised for not including any changes to the current rules on employee entitlements, and for not covering small business owners who don’t meet the requirements of the new tax.
Senator Ian Macdonald from the Greens said he wanted to see an increase in the number of employees that small companies can employ, but that the Government was not offering any further concessions.”
We need a significant number of small businesses to be able [to] be able and to be self-employed, but to have to be exempt from this whole tax regime is very disappointing,” he commented.
What are some other measures in the proposed pizza tax?
The legislation would also provide that any business that is self-sufficient would be able pay the cost for up to six months after the tax had been applied, but it would not apply to businesses that are self-managed or that have no employees.”If a small