Small business tax cuts chopped for childcare

Small business is set to lose the benefit of a tax cuts to companies to childcare following Bill Shorten's $3 Billion promise for families. This represents $1,600 per child.

Many small business have companies, which are the drivers of the current economy. Lower taxes generally result in higher profits, which are often reinvested to create more jobs. It is likely the tax cuts will prevent the next recession.

The economics of this have given away to a hand out of cash to families for childcare. Shorten has put childcare and job taking before job creating. Rather than create jobs he is demanding jobs.

Of course, those who get childcare benefit here getting $1,600pa per child. However, one must remember a similar and more expensive scheme proposed by the Abbott government never got off the ground.

It can be said 'Special' rights have been put before 'Equal' rights as childcare is more targeted to special interest and the effect of tax cuts were more universal, employers and employees.

Abbott’s scheme crashed which would have been a disaster on small business. Only a small percentage of women would have gained, older women and women without children got nothing, therefore, we await Shorten's childcare fate. The election will decide it, then the cash has to be found as its not costed.

Terry Murphy CPA BBus DFP, Director of TaxAssist Accountants

Date published 10 Jun 2016

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