Helen Haines (Indi, Independent) Share this | Hansard source

I rise to strongly support the member for Warringah's amendments to the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023. These are sensible, practical amendments, and they'd increase the positive impact of the small business energy incentive. They would give businesses more time and money to plan and undertake energy efficiency and electrification works. The amendments extend the deadline for projects to be completed from 30 June 2024 to 30 June 2025. The amendments also increase the maximum amount of the bonus deduction under the small business energy incentive from $20,000 to a far more realistic $50,000. Finally, the amendments require the minister to table a report to parliament no later than mid-2025 to assess the effectiveness of the small business energy incentive.

As a long-time campaigner for greater government support to businesses and households to electrify and improve their energy efficiency, I support the bill. It's a good bill, but it is one that can be so much better. I believe these amendments would significantly improve the effectiveness of the bill in genuinely reducing energy costs and emissions for small businesses. Getting this bill right is critical, as energy bill pressures increase and as Australia charts a path towards net-zero emissions.

There are almost 15,700 small businesses in my electorate of Indi that will be eligible for this incentive, and many business owners across Indi have spoken to me of the increased cost of doing business at this time. They're facing rising energy bills. They are a major factor in their business budgets. At the same time, these businesses want to play a role in reducing emissions. This bill can help them to both reduce their energy bills and reduce our overall emissions.

Yet, without an extension of the time line for completing projects, many small businesses will be too hesitant to begin an energy efficiency project or electrification project. They fear that their project won't be completed by the 30 June 2024 deadline. With just seven months until this deadline as it stands, this bill isn't practical. For most small businesses, planning a project, finding available tradespeople and completing the project within seven months just isn't realistic. Any delays could mean small businesses outlay project costs and then find they are not eligible for this support. Extending the deadline to 30 June 2025 gives businesses more time and more certainty that they'll be able to complete the projects within the eligible period.

Extending the deadline also allows for investments to be considered as part of long-term planning, which any business owner will tell you is necessary as they balance cash flow. Many business owners would see this and think, 'Great!' But then they may not be in a position to make such an investment right at this moment. Extending the deadline is needed to ensure the bill actually meets its objective.

Increasing the maximum available bonus deduction under the incentive from $20,000 to $50,000 will provide businesses with more flexibility to choose the project that is best suited to their situation and best sets up their business for the future. This might mean undertaking large-scale projects, such as completely electrifying their business operations. It could allow a supermarket, for example, to install sufficient batteries to endure blackouts without having to rely on generators. It could allow wineries or dairies to improve efficiency and resilience by insulating tanks and coolrooms.

Businesses are calling out for support to reduce their energy bills. This appetite for action is underlined by the number and diversity of projects across my electorate that sought funding under the recent energy efficiency grants for small and medium-sized enterprises.

The small business energy incentive is a fantastic opportunity to provide support to all small businesses, but the government needs to seriously consider these amendments put by the member for Warringah, because they will improve the effectiveness of the incentive. I strongly encourage the government to support these amendments.

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