Nola Marino (Forrest, Liberal Party) Share this | Hansard source

In the remarks of the previous speaker there was a lot of talk about politics, but the majority of the speech was directed exactly that way. So it was contradictory in itself. In relation to small business, if you are in business—and in small business in particular—and you are looking down the barrel of $123 billion in deficits and $667 billion of future debt, which is what the previous government left for us, it really makes you reconsider your plans in business.

Small businesses are a key driver of Australia's economy, underpinning growth and innovation and providing jobs for millions of Australians. The measures in this bill give even greater confidence and encouragement to the small business sector. These are the people who have a go every day in our communities. Small business is our priority, and that is very clearly demonstrated by the bills before the House today.

I really want to acknowledge the persistent efforts of the Minister for Small Business, Bruce Billson. I want to acknowledge his passion and dedication to this portfolio. There is no substitute for either passion or dedication; whether you are the minister or one of those small businesses out there working in and on their businesses every day. They have a lot of challenges. But that is what they do. They are persistent, they invest their own money, and they have a go. We are encouraging them to do that through these bills.

Small business knows that they have an absolute warrior on their side in this minister. He has been the epitome of persistence both in opposition and now as the minister. They can see the fruit of those labours here in these bills. And it is not before time.

During my time here, during the Labor years, they played musical chairs with the portfolio. I forget whether it was five or six ministers for small business, but it was something like that under the previous Labor government. And, unfortunately, Labor treated becoming a minister for small business like drawing the short straw. That was shabby, dismissive treatment indeed.

We have a totally opposite approach. The coalition government's Small Business Minister is in cabinet and is part of the Treasury portfolio; we are literally putting our money where our mouth is when small business is concerned. For the first time in Australia, small business is at the table every time decisions are taken. It is not enough to simply mouth the words 'we support small business' like a throwaway line from the other side. The government must actively deliver policies that foster and grow small business, as we are doing, in part, through these bills.

Small business is more important than ever in the Australian economy.

Mr Matheson interjecting—

Mr Champion interjecting—

I hear the disrespect across the chamber for small business—that is appalling—in this debate. Small business is more important than ever in the Australian economy. As we are all graphically aware in this place, the Australian economy is in transition and faces structural challenges from both domestic and international factors. Mining investment is now detracting from GDP growth. The move to broader based growth is happening, and small business is a key part of this growth. These are the people who literally invest their own money and have a go. So we need small businesses to have even more confidence to invest and grow, and to employ even more workers, because small business employs nearly half the workforce in Australia.

Often, the first job opportunity a keen young person has is in a small business. The owner of that little business, often in a small community, gives that young person a go. We also see—particularly out in my electorate—that the last job a mature-age person has is also in small business, where that owner once again, gives that mature-age worker a go.

I see this over and over in my electorate. There are at least 12,716 small businesses in my electorate. And, of course, they are even more important with below-trend economic growth, which has driven increased unemployment, especially youth unemployment

So what we are facilitating through these bills is each one of these small businesses that gives a young person a go. We know that a combination of factors such as low interest rates and the falling Australian dollar will encourage employment and business growth over the longer term; there have been positive signs already that this is happening, and we have seen job advertisements increasing.

This government's Growing Jobs and Small Business package is the biggest economic recognition of the small business sector in Australia's history. Make no mistake about what we are offering. We are offering the lowest small business company tax rate in almost half a century—in fact, since 1967. We are cutting the corporate tax rates from 30 per cent to 28.5 per cent for small businesses with an annual turnover under $2 million. Not only that, we are offering the same incentive to unincorporated small businesses. We are doing this through a discount of five per cent, or up to $1,000, for the 1.7 million small businesses that are unincorporated, giving them the same incentive. We recognise their contribution and the contribution ahead. We are providing accelerated depreciation arrangements to small businesses and primary producers that are also small businesses. We are simplifying depreciation rules in the tax laws, to increase the threshold for immediate deductibility from $1,000 to $20,000. Farmers will be able to immediately deduct all eligible capital expenditure on fencing and water facilities. Fodder storage assets will be deductible over three years.

Our budget measures reflect our very deep understanding of the complex nature of small businesses across our country. Small businesses have the advantage of being adaptable and flexible. They are able to change and respond, often profitably, to a range of changing circumstances. Studies indicate that small businesses are often the entities that test and pioneer innovative ideas and business practices. They are critical to future economic growth, job prospects and improved living standards, and they will literally have a go. They invest their own money, and they have a go. They mortgage their homes, as we have heard repeatedly, and they take huge risks.

While small companies play a significant role in the Australian economy, they also face a unique set of operational challenges, often having higher failure rates than those for larger companies. Again, they often have a go and take a risk. Sometimes it can be their second or third go. It does not deter them: they learn each time, and they have another go. Often access to finance is an issue for them. Funding for small businesses is essential for productivity, growth and job creation. Improving small business access to finance is a key part of what we are doing.

I was in Augusta recently and came across a fellow who had moved into the community. He was opening up a new fast-food outlet—it was a fish and chips store. He had put all of his capital into it. He is having a go. He knows what the local economy is, but he is still having a go. I take my hat off to every one of these small businesses. I meet them everywhere. They are in every field; they are in every one of my communities—Nannup, Dunsborough, Margaret River or anywhere throughout my electorate—bailing up the local economy. I see that these small businesses are often the ones that support local charities, not-for-profit organisations, local sporting groups and sporting clubs. They donate prizes; they support our local communities.

Because I live in a small community, if it was not for those small businesses in my part of the world investing their own money and having a go, I would have to travel for at least 40 minutes to get what I need for my dairy business. But those local businesses front up in my electorate, they employ local people, they open their doors and I can get in there and get what I need. It is a huge challenge for them in small communities all of the time, but they still offer that opportunity to people like myself. That is why I am particularly pleased to see the support that we are providing to the farming sector through these bills. We are delivering support to farmers, farm businesses and rural communities, because small businesses matter in rural communities.

Each single business matters, and every time we lose one, we lose part of our community. We lose people who are involved in our community, as small businesses and small business people are; they are an integral part. Often it is the local small business where the local community gathers in their own world, and they fix the problems in the world. The small business offers them that opportunity. You see it frequently. Even in a little place like Myalup at the general store, the local people will go down there each morning, pick up their papers and talk to the local business owner. They sit there and talk about the affairs of the day, and it is that small business that helps to hold that community together. That is so underestimated around Australia—the fact that small businesses are a key part of our local communities, particularly our rural and regional communities. So the assistance to primary producers—to be able to claim more favourable accelerated depreciation for water facilities, fodder storage and fencing from July of 2015—is very important for those in the rural sector. These are really down-to-earth practical measures that they appreciate, and the measures allow them to get on with what they do really well.

I support the bill before the House, but in doing so can I acknowledge once again the huge commitment made by small business. It is hard to understand unless you have done it yourself, and unless you have actually put your home and your future on the line. You do not sleep at night when you have a massive debt, as I know from experience. One small problem in your business can cause massive problems, and you may not survive. Let me tell you that every there are those who will tell you that you are not going to survive. My husband and I know it well. We had $12,000 worth of equity and $118,000 on the day that we married, and everybody said, 'You will fail'. Well, we did not, but it took a lot of hard work. It took an absolute focus on our business, on income generation and on keeping control of our costs. When I talk to small businesses, I know that that is what they do every day. That is why I am pleased that we have not only a minister who is passionate and persistent but a government that is, as well.

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