Matt Williams (Hindmarsh, Liberal Party) Share this | Hansard source

The member for Throsby talked about lost opportunity. If he were speaking to his small businesses in his electorate, he would know that they think it is Christmas. They think the instant asset write-off, or the tax cut, is fantastic news. They are incentivised. They have gone out there and purchased. They are looking at investing. He talked about fairness. If he has talked to families needing child care in his electorate, he would know that they are more than happy with the extra support that they will be getting from the government. We heard before from the member for Makin, from my state of South Australia. As usual, he talked about the unfunded promises of billions that were not there, the revenue that was never accounted for and the usual story that Labor cannot manage money. I will come back to that later in my address on Appropriation Bill (No. 1) 2015-2016 and related bills as to how the federal government is supporting South Australia in this budget. Labor, as usual, reverts back to their planning system, their command economy that failed Europe—Eastern Europe in particular—so many years ago, that has been discredited. Stalin would be very pleased with what Labor propose and with what we hear from Labor.

Let's go on to some positive news about what we propose. This year's federal budget has been a huge boost for small businesses in my electorate. I have spoken to countless small business proprietors and heard firsthand the benefits this will have for them. From plumbers buying cement saws, to painters buying paint guns and cafes expanding and redeveloping, small businesses in Hindmarsh are looking to take advantage of the opportunities that the federal government has provided to them. Recently, when the Treasurer, the Prime Minister and the small business minister came through my electorate, this was the constant message for the small businesses—the cafes, the retail shops—that talked with them as they toured through. This budget will grow jobs. South Australia has the highest business taxes in the country and South Australian businesses are crying out for help. They are not getting that help from the state Labor government as they continue to tax businesses, whether that be through the emergency services levy or the payroll tax. But we have listened to small business concerns, we have acted and we are implementing the assistance they need from us. Business SA has come out strongly in favour of the budget and has said:

The Budget has delivered a much needed boost to small business through targeted taxation measures. It is clear that the Government is focused on the task of growing the economy by supporting small business to grow and help create new and sustainable jobs.

The new $5.5 billion Growing Jobs and Small Business package will help small businesses invest more, grow more and employ more. This is the biggest small business initiative in our nation's history. The government is committed to ensuring Australia is the very best place to start and grow a small business. We have heard before how important small businesses are—the engine room of our economy; 96 per cent of all Australia's businesses are small businesses, employing over 4.5 million people. As our economy changes, the role of our small businesses will be even more important. With the economy in transition we are freeing up small businesses to create new jobs.

The budget delivers $3.25 billion in tax cuts for small business and $1.75 billion in accelerated depreciation measures in addition to the benefits Australian small businesses are gaining from the abolition of the carbon tax. Recently we heard from a cafe who said that their electricity bills had decreased by around 15 per cent—another great story from the abolition of the carbon tax. From 1 July 2015, the government will cut the annual company tax rate for almost 800,000 incorporated businesses with annual turnover up to $2 million by 1.5 percentage points to 28.5 per cent. From 1 July 2015, the government will also provide a five per cent tax discount for over 1½ million sole traders, trusts and partnership structures which are unincorporated businesses with annual turnover up to $2 million. We are ensuring that no-one in small business does not have the ability to benefit from these measures. One of the greatest initiatives is tax deductibility, up to $20,000, for new equipment and investment in goods. This is a substantial increase from the previous $1,000 threshold. Australian small businesses will have the lowest company tax rate for public and private companies since 1967. This is significant and will only further stimulate their ability to go out and expand.

The Growing Jobs and Small Business package also includes measures to reduce red tape and regulatory impediments. This is one of the major focuses and objectives of the government and I know, being part of the Prime Minister's Deregulation Taskforce and working with my colleagues, that we are getting results here—around $2 billion in unnecessary red tape, a major hindrance to businesses, has been removed. Entrepreneurships and business start-ups will immediately benefit from the ability to deduct professional expenses incurred when a business is begun, such as legal expenses on establishing a company, trust or partnership, rather than writing them off over five years. This will provide immediate cash flow benefits for small businesses. Streamlined business registration processes will make it quicker and simpler to set up new businesses. The government will remove obstacles to crowd-sourced equity funding to help promote small business access to finance. These are all important initiatives—as are the employee share scheme provisions I spoke about last week. These measures will help encourage investment, innovation and the start-up of new businesses. These initiatives will help the next Atlassian, Cochlear or Westfield—and every success story in Australia starts as a small business.

Since the government was elected, around a quarter of a million new jobs have been created—but there is more work to do. New measures will focus on making job seekers more employable, reducing the costs of taking on new staff, and bringing job seekers and job providers together. The government is investing close to $7 billion to establish jobactive to improve the quality of services delivered to job seekers and employers.

We are also delivering a $331 million Youth Employment Strategy, an $18 million National Work Experience program and changes to Restart to make it easier for small businesses to receive government support when they employ older workers. One of the great things about this budget is the $4.4 billion Jobs for Families package to give parents more choice and opportunity to work. It delivers on our commitment to support families by making child care simpler, more affordable, more flexible and more accessible. I have worked on this previously with the member for Corio. I am sorry, I should have said the member for Corangamite. I doubt the member for Corio would have been so accommodating.

Over the last two years I have visited childcare centres and also undertaken a survey with parents using child care. Affordability was one of the major issues, and this is something that we have addressed in this budget. We know that families are faced with costs when parents decide to return to the workforce. This package gives families greater choice. In terms of practicalities, it focuses on families with an income of between $65,000 and $170,000 per year who will be around $30 a week better off. Families on less than $65,000 per year will receive ongoing access to early childhood learning and can be eligible for additional financial support through the childcare safety net. Focusing on lower and middle income earners is where fairness comes into play. That is something Labor fails to acknowledge.

The government is also trialling new ways to support families, a home care, or nannies, pilot program to help shift workers such as nurses, police—men and women—and those in rural and regional areas who find it difficult to access mainstream childcare services during normal office hours.

The budget also delivers $840 million over two years for preschool programs. I know, through having children that have recently gone through the early childhood years, how important those years are in a child's development. I have worked hard with my colleagues and also the relevant ministers to get this outcome. This is good news for children, families and preschool providers.

The government is also working to fix Labor's mess in the area of defence. After years of cuts, the federal government remains firm on its commitment to increase defence spending to two per cent of GDP within a decade, building on our promise to provide defence with a stable and sustainable funding growth path. Ongoing reform means that defence will be able to invest smarter and where we can find cost savings they will be reinvested in our defence forces. This is in stark contrast to Labor, which ripped around $16 billion from defence, reducing defence spending to its lowest level as a percentage of GDP since 1938. We are repairing this damage. We are investing in areas of defence to have a strong and sustainable industry.

We also announced last month that one of the options being considered is the feasibility of a continuous build strategy for naval shipbuilding, which would sustain a shipbuilding industrial base and avoid the peaks and troughs currently being experienced. I know, through talking with the defence sector, that back in 2011 a decision had to be made by the then Labor government in order to negate job losses in the defence sector around Australia in terms of shipbuilding.

South Australia, my state, is set to benefit from the government's investment in defence, and I will go through a few examples. The government has already invested over $1.7 billion in support of personnel costs, equipment and services and facilities in South Australia. Some of the major projects outside of defence shipbuilding in terms of submarine maintenance and support, and also the air warfare destroyer, which amounts to $1 billion alone, include around $60 million to support the maritime patrol aircraft at RAAF Base Edinburgh, $34 million to support Enhanced Land Force construction works at the Cultana Training Area, and $11 million for the construction of facilities for the Joint Counter Improvised Explosive Device Capability at Woomera.

The member for Makin—all South Australian federal members would be interested in these points—should note that the Commonwealth government is providing increased funding to South Australia across many areas. Over the next four years, Commonwealth funding for South Australia will increase in each and every year, rising by 30 per cent, or $2.4 billion, over the forward estimates, bringing the total Commonwealth spending in South Australia over that period to just under $40 billion. In terms of specific percentage increases, that is a 36 per cent increase in GST revenue, or $1.8 billion, over four years and a 19 per cent increase in funding for hospitals, or $208 million, over four years. I am sure the member for Throsby would have similar or higher increases in terms of dollars in his state of New South Wales. But, no, Labor cry out for more money which is unfunded. In terms of education, something very close to my heart, there is a 26 per cent increase in schools, or $280 million over four years. Infrastructure will receive $2 billion, including millions of dollars for South Road—which borders my electorate—including the $1 billion North-South Corridor program along South Road. Even under the South Australian Premier's calculation of GST receipts, South Australia will receive an additional $600 million—a massive benefit for my state of South Australia.

In closing, South Australia is doing well from this budget and so is Australia. This is a good budget for Australia, a good budget business and a good budget for families. We are heading in the right direction and the people of Australia know that. I commend this bill.

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