Melissa McIntosh (Lindsay, Liberal Party) Share this | Hansard source

When the Morrison government talks about backing small businesses and creating jobs, what follows is considered measures to enable Australians to unlock their potential, expand their business and employ more people. The Australian Business Growth Fund Bill 2019 will fill the gap in the equity market that leaves entrepreneurs and small and medium-sized business owners unable to reach their growth potential. There are almost 15,000 small and medium-sized businesses in my electorate of Lindsay, and I want to see each and every one of those able to achieve their goals. The Morrison government is implementing policies to enable just that.

(Quorum formed) I want to ensure that every single one of those almost 15,000 small and medium -sized businesses in my electorate of Lindsay can reach their potential, and the Morrison government is implementing policies to enable just that.

Access to capital can be a barrier for small and medium businesses trying to grow, while entrepreneurs often struggle to receive the capital required to conduct their day-to-day trading activities. What these businesses need is access to something called 'patient capital'. The Reserve Bank and the Australian Small Business and Family Enterprise Ombudsman have both identified the lack of a long-term patient equity capital market in Australia. The Morrison government has taken this on board. We will explore every opportunity that seeks to back Australian small, medium and family businesses, and entrepreneurs in both metropolitan and regional Australia.

Established Australian businesses will be eligible to apply for equity capital investments between $5 million and $15 million. Small-business owners will not have to give up control for this investment and nor should they. The Business Growth Fund's investment stake will range from 10 to 40 per cent, striking the balance between business owners keeping control of their business while providing sufficient incentives for investors, backing small businesses to grow and attract investors. This is what is the Business Growth Fund has been designed to achieve.

Having run my own small business, I know just how important this fund will be to support small-business owners as they look to take that next step. Initially, the Business Growth Fund could support 10 investments per year, with the aim to increase to 30 per year as the fund develops. We expect to see banks and superannuation contributions to see the fund grow to $500 million.

The Business Growth Fund will be based on similar successful models that are in existence in both the United Kingdom and Canada. It will undertake minority equity investments in small and medium enterprises that have demonstrated growth potential. It will be a patient investor, holding long-term stakes in small and medium enterprise and offer managerial support to the business owners to navigate their next step and fulfil their potential. It is important in this process that we provide the necessary support and advice to business owners so they can sustain their growth.

As Liberals we believe in Australian businesses. We want to see government supporting local small and medium businesses but not getting in their way, because when Australian businesses are strong our workforce is strong. In December 2019, labour force statistics demonstrated that there are more Australians in work than ever before. From the start of last year to December 2019, employment rose by an average of 2.1 per cent, which was higher than the decade-average growth rate of 1.8 per cent. These statistics show that the measures the Morrison government is implementing are supporting aspirational Australians. We've already implemented policies to back small businesses—delivering tax relief, extending the instant asset write-off, incentivising more businesses to expand and employ more people—but we won't stop there. The Business Growth Fund is yet another measure to back small and medium businesses, to fuel the engine room of our economy and to create more jobs.

It's an exciting time for small and medium-sized businesses in my electorate of Lindsay. The Morrison government's investment in Western Sydney and the Western Sydney international airport is unlocking the potential for business growth in my community. We are creating industries and attracting emerging industries in our region, backing Australian businesses and creating local jobs. Eligible entrepreneurs and small and medium-sized businesses in these emerging industries in Western Sydney will now be able to access the capital they need to expand their business opportunities. I am passionate about local jobs and about the future of these emerging industries, particularly coming with the development of the airport and aerotropolis. This fund will give local small and medium-sized businesses the chance to grow and expand. As businesses in my community are able to grow, I want to see more and more local jobs and more local people taking advantage of those jobs. That's why on Friday this week I'll be hosting a jobs fair in Penrith, so we can connect local employers and businesses with jobseekers.

The Business Growth Fund is yet another example of another supportive measure. It's providing advice to business owners so that they can take these next steps to success. I am proud to be part of a government that will continue to explore innovative and world-leading initiatives to back small and medium-sized Australian businesses.

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