Jane Prentice (Ryan, Liberal Party, Assistant Minister for Social Services and Disability Services) Share this | Hansard source

I rise tonight to speak on the Treasury Laws Amendment (Accelerated Depreciation For Small Business Entities) Bill 2017. Let me start by paying tribute to small businesses throughout Australia for the perseverance and tenacity which sees them wake early and leave late every day, every week and every month of the year. You truly are the engine room of Australia's economy. Following the successful and popular initiative in the 2016-17 budget, this bill will enable small businesses with an annual turnover of less than $10 million to claim an immediate tax deduction for eligible assets costing less than $20,000 first used or installed for use by 30 June 2018. In fact, assets do not have to be brand new—second-hand assets are eligible to be immediately deducted if they cost less than $20,000 each. The highlight of the 2017 budget for small businesses was this extension of the instant asset write-off program, as it is most widely known, for a further 12 months.

Testament to the coalition, a pro-small-business government, this measure continues our strong record of backing small business. It will benefit approximately 3.2 million small businesses in Australia to grow and to deliver more and better paying jobs by helping them replace or upgrade their machinery and equipment. We know very well that a strong small-business sector equates to more jobs and job opportunities for Australians and is key to the success of local economies. Recognising that the small-business sector in Australia employs approximately 5.6 million Australians, the coalition stands behind them and is providing hardworking small-business owners with every opportunity to think big and succeed. The coalition's side of the House understands that businesses, not governments, employ people. However, smart people can lead to smarter commercial outcomes when backed by smart government policy. I know many smart businesses in my electorate of Ryan that appreciated these depreciation rules when they were first introduced in 2015. It is government policy providing a hand up, not a hand out.

In the Ryan electorate there are approximately 13,200 small businesses, which employ locals and support the local community. When I travel around my electorate, I am frequently inspired by the creative spirit of new small businesses and their owners—businesses which benefit from a supportive coalition government. Take, for example, Kenmore Plaza Seafood. Known by families in the area as the place of 'Charlie's Chips', Kenmore Plaza Seafood is thriving—so much so that the owners, a family business, have improved their eat-in dining options. Another community hub is the Pullenvale Marketplace. This microcosm of small businesses is home to a medical centre, a pharmacy, a restaurant and a cafe. As an employer of many local residents in Pullenvale and surrounding suburbs in the Ryan electorate, it is another prime example of investment in Australian small business.

A further success story of business innovation and entrepreneurship in the Ryan electorate is that of Opengear—an innovative leader in next-generation smart solutions to protect and manage critical ICT infrastructure. Beginning in 2004 with two employees at ilab in Toowong, Opengear now employs 64 staff worldwide and has offices across Australia, the USA, the UK and Europe. From humble beginnings, Opengear now boasts customers including tier 1 companies, DFAT and the Queensland Police, and they have been recognised with many product and technology awards.

I know the Minister for Small Business, in his second reading speech, mentioned his visit to a local Greek cafe in Parramatta. In my electorate I am fortunate to have a Greek cafe, Briki Espresso and Gelato Bar, located on Hawken Drive in St Lucia. Briki typifies the success that local small businesses have achieved through measures of the coalition government. Through incentives from then Treasurer the Hon. Joe Hockey's budget, Sav and his family were able to expand their business and grow it into a favourite Greek institution known throughout Brisbane. They will now reap the rewards of measures like the instant asset write-off and small-business tax cuts.

There are many other businesses in my electorate which will benefit directly or indirectly from the amendments contained in this bill. Small businesses are the lifeblood of Australia's economy and provide employment for young, old and, importantly, those with disability. When you consider that these businesses across Australia provide 42 per cent of the private non-financial sector jobs and around one-third of production, it becomes very clear that supporting them and their operation is vital. We all hear of the challenges faced by businesses, but it is the small business end of town which faces additional challenges in competing with larger entities. Economies of scale are not easily achieved. Access to finance is invariably more difficult. It is unfortunate that because of these many challenges the failure rate of small businesses is considerably high within their first year of operation. Year on year these businesses take risks and must brave and clear the inevitable hurdles that will arise.

The burden of red tape and compliance is proportionately greater for time-poor business owners, so it should be a confidence booster for them that the government has committed $300 million to states and territories to remove unnecessary regulatory barriers. Small business should not be about mindlessly completing unnecessary bureaucratic paperwork. Small business should be about employment, growth and ultimately profit and reinvestment. What astounds me—and as a former small business owner myself I speak with passion—is that the opposition leader and his cohort are quite literally business destroyers. Consider the opposition leader's budget in reply speech, when he announced that Labor plans to reverse tax cuts for small business. As Minister McCormack said recently, just as businesses receive the confidence injection to invest, grow and create more jobs, thanks to our small business tax cuts, Labor has now confirmed that it will hike small business taxes. Does the opposition leader really intend to deny more small businesses and their hardworking employees access to further investment and growth opportunities? Do they really want Australia to be uncompetitive on the world market? The next time the opposition leader is visiting his local corner score, perhaps to purchase a pie, please consider how the business owner, already fearful as to how they struggle to pay employees or how they often go without to ensure that the shop door actually opens, can open the next morning.

Let me be clear with sentiments that are shared widely among my small business constituency. Labor's cynical, opportunistic politics is the greatest threat the Australian economy. It is a threat to all manner of businesses, from butchers and bakers to local mechanics and cafes. The coalition government believes in small business because with a combination of good luck, good management and good government policy, the small business of today can become the big business of tomorrow. It is inevitable that Labor will harp on about cutting tax rates or providing relief to businesses. Their hypocritical big on small business, short on understanding is the same BS we have seen for a number of years in this parliament. I would seriously question whether the businesses in those seats held by Labor are particularly fond of the opposition's track record when it comes to not supporting Australian business. Labor is a threat to jobs and simply cannot be trusted. The opposition leader says one thing and does another, so how can Australian business trust them?

There is a well-known adage in small business that the harder you work the luckier you will be. I am a great believer in working hard to get ahead. I am also a great believer in government providing the right foundations and pathways to support those with aspirations. It is the policy in amendments like those contained in this bill that demonstrates the commitment that the Turnbull coalition government has to the businesses and people of Australia. We have a strong record when it comes to supporting small business. Given that this measure applies from 1 July, the successful passage of this legislation is critical to ensure certainty and confidence for small businesses. The Turnbull government continues to commit itself to unleashing Australia's business potential to invest, to grow and to pay their workers to support the economic future of all Australians. At the end of the day a business's business is business, and by providing the right foundations the coalition is supporting a path to success, rather than impeding their ability to undertake what they do best. I commend this bill to the House.

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