Now we are almost through the most critical phase for containing COVID-19 as a health risk to our country there is a sharper focus on the steps Government can take to help the business recovery that is badly needed at all levels of our economy.
One of the industries worst affected by this pandemic is hospitality. It is a major employer and a big part of our SME landscape. Just as importantly the hospitality sector plays a vital role in the social fabric of our communities. Its health or otherwise is very visible and has knock-on effects for the morale and well-being of us all.
We are keen to feed into these conversations and encourage all ideas to be put forward, no matter how left-field they might sound. As a starter we think there are existing tax rules that can be modified quickly and easily (even if only temporarily) to help the people who run these businesses back on their feet:
· Entertainment rules – remove the 50% cap to allow full deductibility for business-related consumption of goods or services provided by hospitality operators.
· FBT rules – make vouchers for goods and services provided by hospitality businesses exempt from this particular type of tax.
What do you think?