Steve Irons (Swan, Liberal Party) Share this | Hansard source

Accepted. The list goes on and on. It is a rewarding job running a small business. You may miss out on family holidays—and we in this place all understand that—because you cannot afford to put the business on hold for a few days. Your work day does not end when the clock strikes five. You work through the night because you are not going to let this plan go, you are not going to let the income for your family to survive go. We understand what it is like to be forced to reach into your own pockets when times are tough just to keep people in work. Small business owners have to make great sacrifices to keep people in work, to ensure that they keep their jobs, to ensure that they still receive their wages and to ensure that they feed their families.

For too long, the pressure on small business owners has been mounting. For too long, we have taken their hard work for granted. Our small businesses need our support. That is why this government is cutting small business taxes from 1 July 2016, reducing the corporate tax rate from 28.5 per cent to 27.5 per cent from 1 July 2017, further reducing the corporate tax rate to 25 per cent by 2026-27 and increasing the unincorporated tax discount rate. That is why this government is increasing the number of businesses eligible for a range of small business tax concessions, with the small business entity turnover threshold being increased from $2 million per annum to $10 million per annum as previously noted. That is why this government is introducing a national partnership on regulatory reform providing up to $300 million over two years to states and territories that remove unnecessary regulatory barriers.

It is not only those on this side of the House that can see the benefits of measures like this. The Chief Executive Officer of the Australian Chamber of Commerce and Industry, James Pearson, said:

Small businesses are particularly pleased to see the highly successful instant asset write-off extended to June 2018, reflecting our Pre-Budget Submission, and made available to businesses with a turnover up to $10 million. We are confident this will encourage restaurants to buy more kitchen equipment, landscape gardeners to buy more lawn mowers and tech companies to buy more hardware.

He continued:

Extension of the instant asset write-off is terrific. We heard firsthand from small businesses during our roadshow tour with the Minister for Small Business and the Australian state and territory chamber network for the instant asset write-off to be extended, as well as the call for more reductions to regulation and red tape.

One of the key benefits of the temporary $20,000 threshold is that it encourages businesses to bring forward key capital investment from future years to the current income year, renewing their capital base. When we first introduced the $20,000 instant asset write-off a business in my electorate called Print Ezy, based in Victoria Park, went out and purchased a new printing machine for his business. That measure allowed him to instantly write it off. The actual result of that—and I know the Minister for Small Business will be interested to hear this—when I spoke to him two weeks ago, he said that machine has created so much business that now he has to go out and buy a $100,000 machine. That instant asset write-off was a bonus to his business and now he has to go out and buy a machine that is capable of producing far more printing for his customers and his clients. So it has a positive effect. The coalition can see that. We understand that. We understand that providing incentives, providing instant asset write-offs, to businesses all across Australia gives them the ability to buy equipment that will improve the efficiencies of their business.

Another benefit is that this measure does not only apply to tangible assets but to intangible assets also, such as computer software and intellectual property, provided that the cost is under $20,000 each. I have a short time left and I would again like to congratulate the Minister for Small Business for his efforts in implementing this bill, and I commend this bill to the House.

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