Peter Dutton (Dickson, Liberal Party, Minister for Revenue and Assistant Treasurer) Share this | Hansard source

in reply—I thank the members who have contributed to the debate on the Tax Laws Amendment (Simplified GST Accounting) Bill 2007. I will begin by providing a couple of words in response to the second reading amendment moved by the honourable member for Rankin. It must be difficult, if not embarrassing, for members of the Labor Party to talk about small business and to put themselves forward as a legitimate alternative. This is a country which has now paid off Labor’s $96 billion of debt. We have moved small business in this country from a situation under Labor where they were paying over 20 per cent on their overdraft, where they had unions breathing down their neck and where unions were involved in workplaces and determining bad outcomes for small business.

The Labor Party stand in this chamber today saying that they want a return to the days of bad times for small business. Not one small business person I speak to in my electorate or as I go around the country thinks that the Labor Party would be good for small business in this country. Small businesses have been and remain the backbone of the Australian economy. They are great employers. They are people who risk their capital. They provide good opportunities not only for themselves but also for the future of their families, their local economy and the national economy. To hear the Labor Party in this chamber tonight talk about trying to provide a fresh alternative for people in small business is laughable. It must be embarrassing for them to stand here with a straight face and put that proposition.

This bill enables the Commissioner of Taxation to determine an appropriate simplified accounting method under the business norms method. This will include the commissioner determining the appropriate portion of sales or purchases that represent GST-free supplies. The member for Rankin has raised a concern via his second reading amendment that the government will direct the commissioner to only offer rates that are of no real benefit or are of limited benefit to small business. That is a nonsense. I deal with lots of legislation in this chamber—this portfolio has a large legislative load—and I have never seen such a ridiculous amendment moved by the Labor Party as that moved by the member for Rankin in relation to this bill. The government is a true friend to people in small business and would not be taking the time to make these changes that benefit small businesses if we did not want to see them implemented to the benefit of small business.

Imagine for a moment, please, if you would, how ridiculous this proposition is that is being put by way of amendment by the member for Rankin. This amendment not only is ridiculous but also makes small business understand just how irrelevant the Labor Party are to small business. They are a party of ex-union bosses. They govern for the unions and are governed by the unions. At every opportunity they walk in the way of people in small business, and this parliament today should recognise that. The parliament has given the Commissioner of Taxation the administration of Australia’s taxation laws, and neither I nor any other minister can intervene in that administration. Since the introduction of the GST, the commissioner has implemented a number of simplified accounting methods to the satisfaction of small business. The commissioner is best placed to determine, in concert with small business, what is an appropriate simplified accounting method.

As announced in the 2007-08 budget, this bill will expand the existing GST simplified accounting arrangements, reducing red tape and compliance costs for Australian small businesses. During the course of this debate, opposition members, including the member for Rankin and the member for Prospect, claimed that the government is adopting Labor’s policy in this area. I note that the changes in this bill expand on the government’s idea that has been in place since the inception of the GST. So let us dismiss all of this nonsense talk from the member for Rankin and the other members of the Labor Party who have taken part in this debate that somehow this idea about simplifying arrangements for small business is their idea and theirs alone. When in government, and since they have been in opposition, the Labor Party have done everything to stand in the way of small business, and tonight has again been a demonstration of their ignorance of what is good for small business.

Since the GST began in July 2000, the GST law has enabled the Commissioner of Taxation to offer simplified accounting methods for use by eligible businesses. Over time, the government has expanded the availability of these simplified accounting methods to include a wider range of small businesses. From 1 July 2007, the simplified accounting methods will be available for businesses or other entities, such as charities that have an annual turnover of less than $2 million and that make either a mix of taxable and GST-free supplies or that have acquisitions of taxable supplies and GST-free supplies.

The government has always recognised that small businesses make a substantial contribution to our economy and to Australia and are a vital source of jobs, export and innovation. The government is firmly committed to ensuring that enterprising Australians can create a business and prosper. The measure in this bill is a part of this commitment to helping the small business sector. The government has significantly reduced business compliance costs, including the costs of complying with their GST obligations. The changes in this bill are in addition to other measures announced in the 2007-08 budget which will increase the GST registration turnover threshold for businesses to $75,000 and increase the GST-exclusive threshold to $75 before businesses will need to obtain a tax invoice to claim an input tax credit for purchases.

With small businesses making up 95 per cent of all Australian businesses, this bill ensures that more small businesses in Australia will be able to benefit from applying a GST simplified accounting method to reduce their GST compliance costs. In particular, some of the types of businesses that are expected to benefit from this initiative include small businesses that export goods or services, optometrists, retirement village operators, childcare operators, chemists, educational institutions, travel agents and health retailers. This bill implements positive improvements to Australia’s taxation system. I commend the bill to the House.

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