Labor will make it easier for small business to create new jobs.
Under Labor’s New Jobs Tax Cut, small businesses will be able to claim a tax deduction of up to $20,000 per worker to offset the wages of up to five new employees.
Businesses will be able to claim a 40 per cent deduction on top of the amount they can currently claim for their employees.
Central to Labor’s positive plan to support small business is cutting red tape - making it easier and simpler for small business owners to support Australia’s economy and create jobs.
This is a real jobs plan that offers a responsible tax cut to small businesses – the backbone of our economy.
To qualify for the deduction, the employees will need to be a net addition to the company’s average full-time equivalent staffing level for the previous year.
An employer will deduct 140 per cent of the wages expenses of a new employee when doing their accounts.
Labor’s policy will be targeted to small businesses with turnover of less than $2 million which have been operating for more than two years.
Importantly, the New Jobs Tax Cut will be available to businesses hiring Australians who face real barriers to finding work, including:
- Unemployed jobseekers aged under 25 or over 55.
- Parents or carers returning to work after more than six months away.
Just like the previous Labor Government’s instant asset write-off, businesses will be able to claim the New Jobs Tax Cut as part of their regular tax return. This minimises paperwork for busy employers and means they do not have to deal with yet another agency in order to help someone back into work.
Labor’s New Jobs Tax Cut represents a $257 million investment in getting Australians back to work. It will help up to 30,000 Australians find a job each year.
The cost of the tax cut will be fully offset from the existing wage subsidy program, which is not working as well as it should be. For example, only around 1 per cent of older Australians who would be eligible for the Government’s Restart subsidy are currently in work because of it.
Today, too many older Australians, parents, carers and younger Australians are struggling to get back into work after becoming unemployed or taking time out of the workforce. Labor won’t stand idly by while there are Australians who want to work, but can’t get a foot in the door.
Our New Jobs Tax Cut will reward small businesses that invest in jobs and do their bit to get these Australians back to into work.
Labor will also make investments in the Australian Taxation Office for targeted compliance arrangements such as data-matching, random audits and outreach to small business associations to ensure that our policy is being implemented and utilised effectively.
For more information on Labor’s New Jobs Tax Cut visit: www.100positivepolicies.org.au/new_jobs_tax_cut_fact_sheet
SUNDAY, 19 JUNE 2016