What a Labor minority government could mean for SMEs

With independent MPs Rob Oakeshott and Tony Windsor now officially backing Labor, and Julia Gillard now set to lead a minority government, Labor can begin the potentially arduous process of trying to push its small business election promises through parliament.

However, the political environment is far from certain. Every piece of legislation is likely to need the stamp of approval from each independent, which means it could be difficult to get bills made into law.

Labor’s major SME-related election promises include tax reform with a reduction in the corporate tax rate, and the introduction of a new R&D tax credit, along with the proposals announced in May as part of the Henry Tax Review.