In an unofficial election campaign where we have so far seen very few concrete policy proposals, Peter Dutton’s announcement that the LNP will offer a $20,000 annual tax deduction for small business to claim food and entertainment at clubs, pubs and restaurants comes as something of a surprise.
It should go without saying that this is appalling public policy. Of all the things small businesses can spend money on, business lunches are the least likely to improve productivity or business viability. To the extent that they are fringe benefits passed off as working meetings, they may actively detract from productivity.