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.
Small businesses with a turnover of up to $10 million will be eligible and alcohol will be excluded from the policy.
The measure will run for an initial two years and be exempt from Fringe Benefits Tax.
Leader of the Opposition Peter Dutton said there were dual benefits to this policy.
"This is a win for the small business spending the money on their staff or clients, and a win for the hospitality venues who will see an increased spend in their businesses. It will help businesses recover from a horrible period under three years of Labor," Mr Dutton said.
"Cafes, restaurants, clubs and pubs are the lifeblood of so many local economies around the country.
"Hospitality is a huge part of the economy and yet like so many businesses at the moment, they are hurting under Labor. Skyrocketing electricity, gas and insurance prices. A local coffee shop creates important local jobs, but they are also spending money buying supplies from other local businesses.
"Small business is in our DNA as Liberals and Nationals and we want to help those businesses survive Labor's time in office and thrive when we get back into Government."
Deputy Leader of the Opposition and Shadow Minister for Small and Family Business Sussan Ley said under Labor, small businesses were struggling, bearing the brunt of the rising cost of living.
"Under Labor more than 26,000 small businesses have gone to the wall, with insolvencies at record highs. More than 4,000 of those were in hospitality," Ms Ley said.
"We have listened to Australia's cafes and restaurants and the hospitality sector, and have delivered a policy to support them get back on their feet - this policy will give a shot in the arm to small businesses across the country."
Shadow Treasurer Angus Taylor said the new deduction would apply to meal and entertainment expenses that have a connection with business activity and income, including dining and entertainment provided to clients, vendors, and employees.
"This is a fiscally responsible downpayment on our commitment to lower, simpler, fairer taxes and rebuilding Australian businesses," Mr Taylor said.
"It builds on our commitment to rebuild small business by making the Instant Asset Write Off permanent, saving more than 98 per cent of businesses the hassle of dealing with depreciation schedules when they invest in their businesses.
"Small businesses will always be better off under a Coalition Government."
