House debates

Tuesday, 12 February 2019

Questions without Notice

Small Business

3:12 pm

Photo of Josh FrydenbergJosh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Hansard source

I thank the member for Brisbane for his question, because we on this side of the House all know that he is fighting hard for the more than 30,000 small businesses in his electorate. I had the great pleasure to join the member at Clayfield Seafood Market in his electorate, with the owner, Nick, and to hear firsthand how he has been one of the more than 300,000 small businesses that have taken advantage of the government's instant asset write-off. My message to Nick and to the more than three million small businesses across the country is that not only is the government continuing with the instant asset write-off but the coalition is expanding it from $20,000 to $25,000. This will enable a coffee shop to be able to get a new coffee machine, it enable a baker to get a new oven and it will enable a courier to get a new vehicle, because we are backing small business.

This is one of many measures that we on this side of the House have taken to back the engine room of the economy, Australia's small businesses, including ensuring that the Commonwealth government is paying businesses on time—that we are a model payer and that we are inspiring other companies around the country. So, 97 per cent of contracts under a million dollars are being paid within 30 days by the Commonwealth. But now we are looking to ensure that contracts under $1 million are paid within 20 days, because we don't want small business to be a bank for big business.

We are ensuring that red tape is being cut—$6 billion of red tape has been cut. There is the $2 billion Australian Business Securitisation Fund to ensure more competition, more liquidity and more finance for small businesses. And, of course, there are tax cuts. We have delivered a tax cut to more than three million businesses. Those opposite had to be brought, kicking and screaming, to support the tax cuts.

I'm asked if I am aware of any alternative approaches, and risks to small business. We know that those opposite are planning a $17 billion hit on 300,000 small businesses, including discretionary trusts. These are family businesses that are going to be hit by the Labor Party as part of its $200 billion in new taxes. Nobody is safe from the Labor Party and their plan for higher taxes on small business.

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