Leader of The Nationals Matt Canavan and Federal Member for Hinkler David Batt have met with business leaders in Bundaberg, amid rising concerns over Labor’s broken promises Budget and more taxes on local businesses.
Mr Batt said businesses are deeply concerned about the powers Labor’s Treasurer has given to himself, which will tax businesses more and unilaterally change the goalposts.
“The Hinkler Small Businesses survey results are in – confidence is low and locals are telling me they are angry about Labor’s broken promises, and they fear conditions could get worse,” Mr Batt said.
“The Treasurer can now decide what he taxes, when he taxes – which begs the question, what’s next?”
It comes amid revelations, Treasurer Jim Chalmers will have the power to choose which assets keep capital gains discounts and whether a home counts as a “new build”.
“Minister Chalmers’ potential use of ‘Ministerial discretions’ for the biggest tax grab in decades is just plain wrong,” Mr Batt said.
“The Treasurer will even have the power to change the types of assets and the individuals impacted by tax changes, once legislation is passed.”
Under Labor’s changes, up to 47 per cent tax on gains will apply for businesses. Labor will also charge a 30 per cent minimum tax on discretionary trusts, while a 50 per cent capital gains tax discount will be replaced with CPI indexation.
Cheshire Machinery is a locally owned and renowned specialist in agricultural parts, servicing, and farming equipment.
Owner Ross Cheshire employs around 50 staff across several businesses.
Mr Cheshire said electricity pressures are crippling the business and agricultural sector.
“Government must get back to basics, scrap net zero and reduce electricity prices,” Mr Cheshire said.
“If the farmers can’t afford to irrigate or grow a decent crop, they’re not buying a new tractor.”
Founder and Managing Director of SEQ Advice Bill Beimers – a prominent financial advice firm serving regional Queensland – said Labor’s Budget was sending the wrong message to the very people who drive economic growth.
“Every day I sit across the table from business owners, farmers, professionals and families who are working hard, taking risks and investing in their future. What I am hearing increasingly is a growing lack of confidence,” Mr Beimers said.
“Many Australians understand the need for a strong safety net, but they are becoming concerned that policy settings are making it harder to invest, employ people, build businesses and create wealth. Prosperity is not created by taxing success more heavily – it is created by encouraging productivity, investment and enterprise.
“Regional Australia relies on people who are willing to take risks, employ staff and reinvest in their communities. We should be looking for ways to encourage that behaviour, not discourage it.
“The overwhelming concern I hear is not simply about tax itself, but about confidence. When confidence falls, investment falls, and when investment falls, jobs, wages and economic growth ultimately suffer.”
Labor’s Budget will spend another $18.2 billion on net zero, which means Labor’s net zero spending now equals at least $80 billion. Senator Canavan said a future Coalition Government would immediately stop all of Labor’s bad taxes, including changes made to the capital gains tax, as well as negative gearing and discretionary trusts.
“Labor’s broken promises Budget betrays the trust of Australians and will see regional Australians pay more,” Senator Canavan said.
“Returns for Australian farmers are skewed towards capital gain, not income, and so any increase in the taxation of capital gains is going to hit Australian farmers the hardest. According to industry, less than 50 per cent of Australian farmers now fall below the current thresholds, meaning they will now be subject to one of the highest farming asset taxes in the world.”
A future Coalition government will restore living standards with key pledges including:
- Tax Back Guarantee: ending Labor’s inflation tax by indexing income tax thresholds to inflation.
- Migration and Housing Pledge: capping migration based on how many homes Australia builds.
- Putting Australians First: reserving welfare payments and the NDIS for Australian citizens.
- Future Generations Fund: banking resource windfalls to pay down debt and build national infrastructure.
- Fuel Security Plan: delivering more fuel, more storage and more security for Australia.
- Boosting Small Business Investment: allowing small businesses to immediately write-off assets costing up to $50,000.
- Strengthening Australia’s Security: committing to a whole-of-nation National Security Strategy and at least 3% of GDP on defence.