Wednesday, 4 May 2016
Questions without Notice
I would very much like to thank the member for Herbert for this question. As someone who worked very hard in a small business before coming to this very place, the member for Herbert very much understands small business He understands that this Turnbull government is backing hardworking small businessmen and women and encouraging workforce participation and business investment to improve growth and to create jobs. We are expanding tax incentives and tax cuts to even more small businesses so that they can reinvest in their businesses and they can create local jobs.
More than three million small businesses will benefit from the government's cuts to tax. From 1 July 2016 the company tax will be reduced to 27.5 per cent for the 870,000 small businesses with a turnover of less than $10 million. Unincorporated small businesses will also benefit from increased tax discounts of eight per cent from 1 July 2016 for the more than 2.2 million unincorporated small businesses with a turnover of less than $5 million. We are also expanding access to a range of small business tax concessions for businesses with a turnover of less than $10 million. This includes access to those $20,000 instant asset write-offs, which mean that business owners can invest in their business.
How will this help the electorate of Herbert? Under the government's new definition of small business, there are more than 13,000 small businesses in the electorate of Herbert with a turnover of less than $10 million. Take, for example, the Great Northern Laundry. This is one example of a fantastic small business in his electorate. It employs more than 50 people in the local community; it has a turnover of above $2 million. Currently, it does not qualify for the government's small business tax cuts or concessions, but under the government's changes the Great Northern Laundry will receive a tax cut of 2.5 per cent and will be able to take advantage of the instant asset write-off. Are there any risks to this? Well, yes, there are, and they are sitting opposite. Labor has said that it will tax small- and medium-sized businesses more. Compared with our economic plan, they will force more than 90,000 small businesses, employing more than 2.2 million Australians to pay more tax. As the Leader of the Opposition said in his interview today on the ABC: 'It's a matter of priorities.' We on this side of the House prioritise small business; we back small business. Those opposite stand in the way of small business and are a handbrake to their expansion.