Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

Firstly, one of the very encouraging economic green shoots that has been emerging in recent times under this government is that the number of bankruptcies is actually trending down. That is good news, which I am sure is welcomed by senators right across the chamber. The second point is a point that I have also previously made: obviously, in order to be able to benefit from a reduction in income tax or from a measure like the immediate asset write-off for investment in assets of up to $20,000, you need to be a profitable business. So for a new business to be able to access this sort of measure, the new business would have to be immediately profitable in order to be able to practically take advantage of either a tax deduction or the immediate asset write-off. If you do not pay any tax, obviously you are not going to be able to benefit from a tax deduction. You cannot cut tax for people or businesses who do not pay tax. So it is self-evident that this measure is squarely aimed at encouraging and incentivising the future success, the stronger success, of businesses that are already profitable.

Bills agreed to.

Bills reported without amendments; report adopted.