Luke Howarth (Petrie, Liberal Party) Share this | Hansard source

I'm really pleased to rise and speak on the Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2018. I'm pleased to do it because it's part of our plan for jobs and growth. We know that our policies are working. We've seen record jobs growth in the last 12 months—some 420,000 jobs, in fact, throughout Australia over the last 12 months, with the vast majority of those being in small and family owned businesses. Funnily enough for senators and MPs on the other side of the House, most of those jobs have been created in businesses with a turnover of up to $50 million. Why is that so significant? Because that's where we've reduced company tax, in businesses up to $50 million. They are the ones who are employing people. They're the ones giving people a head start, a job and aspiration as they move from one job to another. What's really interesting as well is that today those opposite opposed $140 billion in income tax cuts. They want to make sure that Australians don't keep their own money. They want to actually take more of your money—your hard-earned income tax. They don't want to pass that through the Senate, and it's an absolute shame. We know that hardworking Australians do extremely well.

We talked a little bit today about aspiration. The Deputy Leader opposite said she has no idea what that means or what it is, or she has no aspiration. The fact is that I know people who were earning $40,000 about six years ago and now they're on well over $80,000. Other people I know were on $90,000 and are now on over a couple of hundred thousand dollars. So aspiration is a good thing for everyone. For every young person in this country, for everyone who wants to get ahead, for everyone who has a goal or a dream, this is important. That's why we're eliminating bracket creep and providing aspiration to the people who want to do it. The Labor Party stand opposed to it because we know that, heading to the next election in next 10 months, they're for higher taxes and we're for lower taxes; they're for more spending of your money and taxing you more and we're for better management of your money and want to see the economy come back to surplus next year.

In relation to this bill in particular and company tax, we also know that small businesses aren't just businesses under $2 million, like those opposite would have you believe. It's an absolute fantasy. They need to get out in the real world. This bill will apply to all businesses earning up to $10 million. I want to say to the businesses in my electorate: you've got a great opportunity in the next week and a half. Go grab it. Before 30 June, next Saturday, you've got the opportunity to buy products—and it can be any product you like—up to $20,000 and you can instantly write it off this financial year, rather than having your accountant depreciate it over three, four or five years, or whatever is applicable. This is a good measure that was extended in this year's budget, so it will go next year as well. The Treasurer put it forward, and I'm very pleased to support it. But businesses should take advantage of it in the next week and a half.

There are lots of opportunities for businesses in my electorate and, I'm sure, in every member's electorate to take advantage of this measure. In my electorate, I have some fantastic artists. I have a lady called Jo St Baker. She is an individual artist who runs a business out of Mon Komo Hotel in Redcliffe. She does some fantastic artwork in relation to the local environment, the local seaside of the Redcliffe Peninsula. She has pieces from a couple of hundred dollars up to a few thousand. You might find that a business has just fitted out their office and they want a new piece of artwork for their front foyer. They can go down and see Jo St Baker and pick up a piece and instantly write that off this year, which is important.

There's a lady called Sharron Tancred, from Tailored Artworks. Sharron is a lovely lady and does some fantastic work. She's a really good networker. She lives just over in Murrumba Downs and goes to the North Lakes Chamber of Commerce. Tailored Artworks customises artworks and transforms spaces. A business might put in a new kitchen—we'll get to new kitchens in a moment—that has a splashback and they want to create a special art piece for it. They will be able to take advantage of the instant asset tax write-off, if Sharron can get it done within the next week and a half. I imagine she would be pretty busy.

If you're a business and you need a new kitchen, people like Kingswood Cabinets at Narangba in my electorate have a whole range of different kitchen products for a few thousand dollars. Not only will you be able to give business to them and instantly write it off this year; you will also be able to give the local carpenter or installers some work, which is important as well.

Businesses may be after a new car or a second-hand car. They could go and see Village Motors at North Lakes or Jeep and VW down near Redcliffe at Kippa-Ring. There are a whole load of car dealers in my electorate. There's Mazda at Aspley as well. People may be able to pick up a new vehicle for under $20,000—a small single-cab petrol ute—or a second-hand vehicle. They've got a week and a half to do so and take advantage of the instant asset tax write-off. Not only that, they can whack a new bull bar on the front. In my electorate, there's East Coast Bullbars at Clontarf, and also Ultimate Bullbars at Narangba, who make custom bull bars. I'm very fond of what East Coast Bullbars do in particular, because they employ over 100 people. They make the best world's alloy bull bars right in the Petrie electorate. So people can once again take advantage of the instant asset tax write-off.

Remember, if this wasn't extended, businesses buying these products would have to depreciate them over seven years. For the member for Kennedy, these are Australian made and manufactured bull bars; they are made right here in my electorate. I know he is always on about manufacturing. He should be jumping for joy on this one. We've also got Kennedy's Timbers at Narangba, which sell a whole lot of recycled timber, which is fantastic. If a business is looking to do up their foyer with some new timber, they could take advantage of that.

You can also buy new computers, new servers or new monitors, perhaps from one of the Harvey Norman stores or from an individual small business that sells computers in my electorate. You may want to reward the staff and get them a new coffee machine. I have a great coffee roaster in my electorate, Neli Coffee at Clontarf, that also sell machines. If you want to buy a coffee machine for $1,500, rather than depreciating it over a few years, you can instantly write that off in the next week and a half. Because the government has a plan for small business, it will be extended next year as well.

Another good manufacturer in my electorate is Polyworld at Clontarf. They sell all types of water tanks. If you want to get a water tank for your business—you may be using a lot of water—you can hook it up to the roof, catch some of that water and use it in your business. You will not only be providing some work for Polyworld but also for those individual plumbers that will install it for you.

We know businesses are very sensitive with energy prices at the moment. Energy prices are a real issue. I've spoken on this. We need to make sure that we have reliable, affordable energy, as well as renewable energy. We need to make sure that we adopt the government's RET and not go to the reckless 50 per cent renewable target of those opposite, which will continue to send prices up. When those opposite were in government, energy prices doubled for businesses in my electorate. You might want to take advantage of Springers Solar or Sunelec in Clontarf, local businesses who sell solar. They can put it on your roof. If you are a business, I would encourage you to take advantage of that now. Most businesses operate between 8 or 9 am and 5 pm—I know the days are a bit short in winter. That is the perfect place to install solar because, as you are producing it, you can use it at the same time. Don't worry about selling it back into the grid; just use it as you create it.

There are a whole range of businesses in my electorate where people can take advantage of the instant asset tax write-off. I am very pleased to support this bill. I know that it is creating jobs. It is part of the government's plan. Once again, I go back to the 420,000 jobs created in the last 12 months. This stuff doesn't just happen by accident; it was a detailed plan in relation to jobs and economic growth that centred around business tax cuts. We have seen the advantage in cutting company tax for businesses up to $50 million. Again, that is where the jobs are being created. The instant asset tax write-off is benefiting businesses as well.

Free trade agreements have also been beneficial. Moreton Bay Seafoods in my electorate sells prawns and so forth into China. They have been able to take advantage of that, which is really important. In defence manufacturing, I am very pleased that the government will be building the Land 400 project at Ipswich. That is good news for Queensland, and there are businesses in my electorate that will be able to take advantage of the supply chain as well.

We have also seen the free trade agreements helping in agriculture. A lot of people in my electorate really care about farming. We have seen some boosts to agriculture because of free trade agreements as well. Our plan around defence manufacturing, our plan around free trade agreements in agriculture and our plan around business tax cuts are all producing jobs and economic growth. The more economic growth we get, the more income tax and company tax we have. That's why next year we will be balancing the budget.

That is all at risk if the Labor Party is elected. We know they are reckless. We know they don't understand small businesses. If they did, they would certainly be supporting the instant asset tax write-off for businesses up to $10 million. It is outrageous that they think only businesses under $2 million should take advantage of this opportunity. This is good policy. I support the bill.

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