The Labor government has ridiculed the Coalition’s new plan to allow small businesses to claim tax deductions of up to $20,000 on meals and entertainment, with senior ministers slamming it as using taxpayer money to “shout your boss steak tartare”. The policy, pitched by Opposition Leader Peter Dutton as an incentive for businesses to spend more at local venues, has come under intense scrutiny as the government demands more details on what exactly would be covered and how much it would cost.
“A Farce”: Labor Slams Coalition’s Business Lunch Tax Breaks
Treasurer Jim Chalmers pulled no punches in his criticism of the Coalition’s proposal, claiming it amounted to a perk for bosses. “How will they make sure that it’s not rorted? They’re making it up as they go along,” he argued. Education Minister Jason Clare went even further, posting ads on social media accusing Dutton of wanting “taxpayers to pay for their bosses lunch” while Labor backed “free TAFE for tradies”.
In a cost-of-living crisis, both Dutton and Prime Minister Anthony Albanese have sought to portray themselves as sympathetic to the concerns of ordinary workers, and to accuse their opponent of being too cosy with big business and well-paid corporate leaders.
Dutton Declines to Specify Cost or Coverage
Pressed for specifics on how much the tax deduction policy would cost and what exactly would be eligible, Dutton was evasive. “We’ll provide that information as you would in the normal scheme of things. We don’t dance according to the demands of Jim Chalmers,” he told reporters. The Coalition later clarified that strip clubs and adult entertainment would not be covered, but conceded that hospitality or food at sporting matches or golf rounds with clients could be claimed.
- Labor has slammed the policy as a “farce” and perk for bosses
- Dutton declined to provide specifics on cost or coverage
- Policy would apply to meals for clients, vendors, employees
Questions Remain Over Enforcement and Eligibility
While the Coalition says the policy is meant to boost spending at local cafes, restaurants and pubs, with Shadow Treasurer Angus Taylor promising “appropriate safeguards” against rorting, many questions remain unanswered. It’s unclear how the $20,000 cap would be enforced, what criteria would determine eligibility for the deduction, and what mechanisms would prevent misuse. The lack of a cost estimate has also raised eyebrows.
Dutton said the policy would help “about 98% of businesses in Australia” under the proposed $10 million annual turnover threshold, declaring it would benefit “2.5 million businesses”. But without further details and modelling, it’s impossible to verify those claims or gauge the full budgetary impact.
| Key Takeaways | Unanswered Questions |
| Coalition proposing uncapped tax deductions up to $20K for small business meals & entertainment | Exact cost and budget impact |
| Labor slammed as perk for bosses and potential rort risk | Comprehensive list of what’s covered and what’s excluded |
| Dutton claims will help 2.5M businesses but provided no modelling | Criteria and mechanisms to determine eligibility and prevent abuse |
A Political Wedge or Serious Policy?
With the election looming and the Coalition under pressure to announce more substantive policies, it’s unclear whether this tax deduction proposal is a serious offering or more of a political tactic to wedge Labor. Dutton and Albanese have both been attempting to cast themselves as the champions of ordinary Australians feeling the pinch of cost-of-living pressures. Painting Labor as unsympathetic to small business could be part of that strategy.
However, Labor’s attacks characterizing it as a handout to bosses and a potential “rorting mechanism” seem to have put the Coalition on the back foot. The government’s demand for Dutton to “come clean” on the costs and specifics has so far gone unanswered. If the Opposition wants this proposal to be seen as a credible policy to support small businesses doing it tough, rather than a political ploy, more details and transparency are essential.
As the two leaders battle to demonstrate their economic management credentials and commitment to easing cost-of-living burdens, policy offerings like this will face intense scrutiny. The challenge for Dutton and the Coalition is to convince voters they’ve done the hard policy work and costing, not just devised a populist announcement that unravels under questioning. Until those details are forthcoming, Labor’s “farce” label may stick.
