10 Sep 2020 Small Business Measures

Small Business Ombudsman urges to abolish FBT to stimulate cash flow

The Australian Small Business and Family Enterprise Ombudsman Kate Carnell has urged the Federal Government to abolish fringe benefits tax (FBT) for at least two years to provide a much-needed cash flow boost to the economy and support struggling small businesses.

In a letter to Treasurer Josh Frydenberg, Ms Carnell argued this small change to the tax system would provide a big boost to small businesses in the industries hardest hit by the COVID-19 crisis.

Ms Carnell cites EY modelling done on behalf of Tourism Accommodation Australia and the Australian Hotels Association that indicates suspending FBT on accommodation, meals and beverages alone, would produce economic returns of up to 3.8 times the direct cost to the Government.

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