The Hon Jim Chalmers MP
Treasurer

Senator the Hon Katy Gallagher
Minister for Women
Minister for Finance
Minister for the Public Service

New Treasury costings show tax breaks for food and entertainment would cost the budget $1.6 billion per year.

This becomes more than $10 billion a year if all eligible businesses claimed what they’d be entitled to. 

In the absence of Opposition costings, the Government asked Treasury to cost a proposal based on parameters made publicly available by the Coalition.

Peter Dutton wants workers to pay for their bosses’ lunch. 

The Liberals’ taxpayer-funded long lunches policy would smash the budget.

This is why they won’t come clean on costings or cuts.

We now know this policy costs billions of dollars but we still don’t know what Peter Dutton would cut to pay for it. 

The Opposition announced on 19 January that: “A Dutton Coalition Government will cut red tape for small businesses by introducing a capped tax deduction of $20,000 for business-related meal and entertainment expenses.”

It’s been more than two weeks since Peter Dutton announced this policy but he still hasn’t released a costing. 

According to Treasury advice, there are significant risks the policy would cost much more.

If take up and average claims are higher than expected or if businesses rort the system by illegitimately claiming food and entertainment that is personal, not for business, the cost of the policy would increase substantially.

For example, if take-up increased by 30%, the proposal would cost $2 billion per year. 

If take-up increased by 50%, the proposal would cost $2.4 billion per year. 

This shows the Liberals are the party of rorts and waste. 

After three years, the best the Coalition can come up with is billions of taxpayer dollars to subsidise long lunches and entertainment.

Peter Dutton is the biggest risk to household budgets, the national budget and the broader economy.  

Australians would be thousands of dollars worse off if Peter Dutton had his way, and they’d be worse off still if he wins the election.

The contrast is clear: tax cuts for workers under Labor or tax breaks for bosses’ long lunches under the Liberals.