House debates

Thursday, 18 June 2009

Adjournment

Budget

4:44 pm

Photo of John MurphyJohn Murphy (Lowe, Australian Labor Party) Share this | Hansard source

Having listened to the MPI debate here a few moments ago and to the opposition’s dishonest attack on the Rudd government, I want to defend the government and restate what we are doing for small business. In this year’s budget alone, we committed more than half a billion dollars in incentives for small business. Measures delivered by the government include the increase in the rate of the small business and general business tax break, the new research and development tax credit, the Small Business Support Line, Small Business Online, the new Commonwealth Commercialisation Institute, a $50 million boost to the Export Market Development Grants Scheme, a 12-month extension of exceptional circumstances assistance under the rural small business program, and the PAYG cash flow relief initiative.

These measures are in addition to the two stimulus packages delivered by the Rudd government. Contrary to the motion that came before the House this afternoon, the Rudd government is supporting small businesses and jobs through its budget initiatives and stimulus packages. It is beyond belief that the opposition can stand here today and claim that the Australian government has failed to support Australian small businesses. Today I spoke with the Chairman of the Burwood Chamber of Commerce in my electorate of Lowe, who reported that his overall assessment, in the Burwood local government area, is that the Rudd government is maintaining confidence and optimism in the business community.

I take this opportunity to walk the opposition through some of the measures that the government has introduced for the direct benefit of small businesses. The government has increased its small business and general business tax break from 30 per cent to 50 per cent at a cost of $141 million. Small businesses with a turnover of less than $2 million a year can claim a 50 per cent deduction for eligible assets that cost more than $1,000. This measure has been warmly welcomed by many small businesses in my electorate of Lowe. The small businesses in my electorate will greatly benefit from the increase in the small business and general business tax break to 50 per cent.

The government, as you know, Mr Speaker, has already doubled the incentive for eligible small businesses to undertake research and development under the new research and development tax credit. The benefit to small and medium sized enterprises is the provision of a 45 per cent refundable credit for firms with an annual turnover of less than $20 million.

These are indeed difficult economic times. The government recognises this and is delivering for small business. In response to what the opposition are saying, I note that the government has also provided the Small Business Support Line, which will offer specialist advice on business matters as well as personal stress advice and support. The support line will be part of the nationwide network of business enterprise centres and other advisory services.

The National Broadband Network will also provide further opportunities for small businesses that operate online. These benefits include reduced costs, marketing opportunities and broad market scope—all appreciated by small business. Further, the Rudd government is introducing a revolutionary Commonwealth Commercialisation Institute. The role of the institute is to assist firms in their quest to grow and remain in Australia—supporting Australian jobs and supporting small business.

For our rural small businesses, the Rudd government is extending the exceptional circumstances assistance for farm-dependent small businesses, which includes relief payments and interest rate subsidies. The government appreciates the difficulties all small businesses face during an economic downturn, hence the Rudd government is making every effort to ensure we support the engine room of our economy.

Again, in response to the difficulties experienced in the global economy, I am pleased to report that the government has delivered that extra $50 million for export market development grants. This funding will assist our country’s more than 1800 small and medium sized exporters.

Many of the small businesses in my electorate also warmly welcome the budget measures providing PAYG cash flow relief. This measure will benefit more than one million small businesses which pay quarterly PAYG instalments based on their previous year’s tax, adjusted by GDP growth. The government has reduced the GDP adjustment factor from around nine per cent to two per cent in light of the expected increase in the CPI for 2009-10.

Measures such as these are extremely important to small businesses in my electorate, from the cafes on Majors Bay Road in Concord to the busy shopping centres on Burwood Road, Burwood, to the restaurants of Great North Road, Five Dock. I applaud the Rudd government for the extensive initiatives it has taken to support Australian small businesses. The government is indeed delivering for small business.

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