Here we have the libs and labor going head to head about what they feel is a small business, with the libs saying ten million in turnover, while labor says leave it at the two million as is currently the case.

Surely a better way of determining a small business would be to use a 'before tax profit figure' as not all small businesses are the same.

As an example, a business with an annual turnover of twenty million, with a 2% margin, is not as profitable as one with a two million turnover with a 75% margin.

The first has a gross profit of $400K, while the second a GP of 1.5 million. Why is the second a small business, and the first not?

Surely the amount one makes effects outcomes more than the amount one sells.

Your idea does not make sense Rehctub, as then a large company making a loss, would be classified as a small business, which is clearly not the case.

Yes Yabby, but that's because you are using the current method of defining a small business and this is my point.

Would it not be more reflective to use before tax income to define the size of a business?

Why turnover?

There are some businesses with huge turnovers who employ just a few. They buy and sell but warehouse nothing. They might turn over twenty million, but only make half a million in taxable income, what makes them a large business.

Butch, don't you think it would be better to define a small business as one that rips off the tax system, exploits its workers by underpaying with cash in hand. Sorry that's a shonky business a bit different.

Gee Paul, I didn't expect that!

Just remember Paul, if you shop at a market, or even online, chances are you are contributing to the very thing you hate. Food for thought!

The point is a small business should be defined by the amount of pre tax profits made, not turnover. Its just my opinion.

Butch, so in 2014 QANTAS was a small business, a very small business, with a whopping loss of $2.8 billion, that would make QANTAS a non business in fact. But like the Phoenix rising from the ashes, one year later, QANTAS posted a profit of $557 million, making them a very big business. What's it to be, what kind of business is QANTAS?