The EMA says it is relieved that the government has decided not to proceed with a capital gains tax because of the detrimental effect it would have had on the productivity and growth of small to medium-sized businesses.
“It wasn’t something that was going to meet the objectives of reducing over-investment in housing and increasing tax fairness, and it would have been at a significant cost for SMEs,” says chief executive Brett O’Riley.
“We commend the Government’s decision not to proceed as our members were telling us that a capital gains tax on their business assets would have discouraged investment and innovation, and hampered their ability to increase productivity and grow.”
Mr O’Riley says with this no longer looming over them, EMA members can now concentrate on the very real challenges they face every day, chiefly the ability to get the people they need.
“Economic growth indicators support what members are telling us about the difficulty in finding the workers they need to carry out their growth plans, and this is exacerbated by the current approach to immigration,” he says.
“Dropping the CGT is one less issue for SMEs to deal with, especially with the volume of change this government is trying to introduce in the workplace.”