The Australian Industry Group has voiced its opposition to the government’s plan to repeal nearly $4 billion in tax concessions for mainly small businesses. The concessions are associated with the Mining Resources Rent Tax (MRRT).
The Australian reports that, according to the Ai Group, the government’s plan will increase compliance costs and complexity for small businesses and reduce investment returns.
The government’s plan is to reduce the thresholds available under the small business asset write-off regime from $6500 to $1000.
Last month Treasurer Joe Hockey said that by repealing the mining tax and its associated concessions the budget bottom line will be improved by by $13bn over the forward estimates.
A spokeswoman for the Treasurer said, "The MRRT raised very little and when you take away that revenue, you don't have any means for paying for any of the measures it was associated with."
However, Ai Group chief executive Innes Willox sees a problem with the plan.
"It will subtract from their cash flow over the next few years at a time when many small businesses are struggling and it will reduce the return on new investment at a time when there is weak investment outside of the mining-sector," he said in a submission on the proposed repeal of the mining tax.