Greens’ small business tax cut best option: Brown

Australian Greens Leader Bob Brown said today cutting the company tax rate to 25% for small business would be better than allowing businesses to claim against past losses.

"The so-called ‘tax carry-back' option being mooted by the Government is second-rate compared to the Greens' plans for companies," Senator Brown said in Hobart.

Tax carry-back would render company tax even more volatile, with collections dropping more in a downturn.

"Small business should be supported by amending the Government's mining tax package so that instead of big businesses having their corporate tax rate cut from 30 to 29%, small businesses would get a tax cut to 25%. This would be a revenue saver as well as providing a much bigger break for smaller companies," Senator Brown said.

"The Greens' small business tax cut plan is better because:

• it is concentrated on small companies that lack the market power of large businesses, and are often the source of innovation and train the next generation of entrepreneurs and business leaders, are more employment-intensive and bear disproportionate administrative costs of tax collection and regulations;

• it encourages and assists most small companies, not just some troubled companies;

• its cost to the budget is more predictable; and

• it avoids adding complexity to the tax system."