Bruce Billson (Dunkley, Liberal Party, Minister for Small Business) Share this | Hansard source

I thank the member for Forde on so many levels. He chairs the coalition backbench policy committee for small business, he has lived the life of small business, he has been an adviser and an advocate for small business all of his professional career. Guess what, he is still doing that in an exemplary way here in the nation's parliament. I sincerely want to thank you but also put on the record that we are not twins—there has been some suggestion of confusion there. Member for Forde, thank you.

The $5.5 billion Jobs and Small Business package has a number of elements to it. We have spoken briefly about the small business company tax cut. That tax cut will see incorporated small businesses attracting the lowest company tax rate in almost 50 years—1967 was the last time the small business company tax rate was lower than what we are doing now, and that was when Sadie (The cleaning lady) was the number one hit. So there have been a couple of generations since we have had that kind of incentive but it is back. We also know that two-thirds of small businesses are not structured as companies. Unlike Labor, we have not forgotten about those enterprising men and women. There is a five per cent discount on their tax liability for turnovers under $2 million up to $1,000 worth of benefit. In proportionate terms, that is commensurate with the small business company tax cut, but what is significant is that it captures the two-thirds of small businesses that are not incorporated. They are your tradies, your self-employed, your sole traders, those operating through partnerships—and it is for each partner that is actively contributing in the business, so that is $1,000 for those active contributors—and also those operating through trusts. That is a great measure, a really terrific measure.

That is not all that is there. There is the asset write-off provision—that is, for a business-related asset purchase that would otherwise have to be depreciated through asset pooling arrangements and the like. Previously that was $1,000; that has been raised to $20,000. That was the message we were hearing: 'Put it at a level where there could be an investment in new productive capacity within these businesses.' It has been great for a number of electorates, and great for me to accompany great colleagues like the member for Eden-Monaro to hear firsthand how businesses are taking advantage of that. I remember Scott at the metal fabrication business talking about a new piece of metal fabrication equipment he will be buying that will boost his efficiency and help his business delight more customers in the greater Canberra and Eden-Monaro region. There are some of the examples.

The member for Forde moved into the primary industry sector. If small business is the engine room of our economy—and it is—it is fair to say, though, that farmers are the heart of our identity. We have not forgotten about the great contribution they make or the challenges that they face. One hundred and fifteen thousand businesses report agriculture as their main business activity. There are a further 13,900 that report agriculture as a secondary activity of their enterprises. We have recognised and celebrated that in the budget. Not only are they entitled to access the broader small business and jobs package benefits but there are particular measures for primary producers. We have said since budget night that capital expenditures on water facilities and fencing will be expensable in the year in which they were incurred. That includes this financial year because that measure takes effect from budget night.

The area of food and fodder storage assets is very important as rural producers and their businesses contend with drought and variety in the climate. Having water storage infrastructure and investment is important to the sustainability of their business, as is the area of fodder storage and food for livestock. That is ordinarily depreciable over about 30 years. That will be accelerated so it is a three-year depreciation. They are key parts of the package.

Beyond that, we have also recognised that, just as the population is ageing, the ownership profile of small business is also changing. I celebrate that more women than blokes are starting small businesses right now. I am thrilled about that. It shows the entrepreneurship of women and their preparedness to take their ideas and insights and turn them into economic opportunities for home based and microbusinesses, in some cases juggling those dual priorities in their lives of family and economic security. Being self-employed and an entrepreneur is a great step forward.

Using new technology is another part of it. But it is also about looking at ageing and succession planning. In here we are ensuring that, when a business does not change ownership but has to change its structure to better respond to its future ambitions and needs, that does not trigger a capital gains tax event. That is very important in our primary industries as we look to the future and want to support that next generation of primary producers.

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