Long lunches are back on the menu for small business, with hospitality peak bodies praising a Peter Dutton promise to introduce tax deductions of up to $20,000 for business-related meals and entertainment expenses.

“This is unprecedented pre-election policy, and we call upon the government to match it,” Australian Restaurant and Cafe Association chief executive Wes Lambert said. “It is the exact recipe that the hospitality industry needs to survive in 2025 – as we continue to see flat demand and high inflation and an uncertain way forward without these types of initiatives.”

The Opposition leader unveiled the policy, one the association had campaigned for, at a Brisbane campaign rally for the Coalition on Sunday.

“It shows the Coalition has its finger on the pulse of small business – especially the hospitality industry – going into the election,” Mr Lambert said. “The government is definitely going to have to up their ante to come anywhere close to this for the hospitality industry.”

Mr Dutton said alcohol would be excluded from the new deductions scheme, which would only be available for businesses with a turnover of less than $10m annually.

The scheme will run for two years and be exempt from fringe benefits tax, with Mr Dutton saying it’d be a win for small businesses wining and dining clients, as well as the cafes and restaurants benefiting from their spend.

Mr Dutton also said Labor “will unleash more scare campaigns. Three-eyed fish and Mediscare are just the start”, referring to Labor messaging that Medicare would face cuts if the Coalition won.