Bruce Billson (Dunkley, Liberal Party, Shadow Minister for Small Business, Competition Policy and Consumer Affairs) Share this | Link to this | Hansard source

I have a couple of issues I would like to raise tonight, one a familiar one and one a very much local achievement that I would like to share with the House. The first issue concerns personal services income and the ongoing assault of the Gillard government on self-employed and independent contracting people. We have been witness to one of the most extraordinary arrays of weasel words, of slick billy sophistry and of what I think are misleading claims about what has been going on within the government, at a time when more than two million people derive their livelihoods from independent contracting.

It was very clear, prior to the 2007 election. The then Labor opposition said to the independent contracting community that they would make no change to the personal services income tax laws. It was that simple; it was that straightforward; it was that reassuring. ‘No change’ were the words. The Labor Party earned some credit from the independent contracting community for being so clear and upfront—but, my, has so much changed! Within a short period of months after the election of the Labor government we saw the Board of Taxation with a review sponsored by Senator Nick Sherry claiming that the whole system was a threat to the integrity of the tax system and that independent contracting was somehow was depriving employees of their entitlements, not for one minute recognising its important economic contribution, that self-employment is a virtuous and honourable ways to earn a livelihood and the key economic driver that independent contractors were providing right throughout our community.

We pressed the issue. Had the government changed its mind? Were they going to backflip on these very clear assurances? We saw Senator Sherry laud the report for change and sponsor it to the Henry tax review, completely contrary to the assurances that had been given. Then it went off to the Henry tax review. The government had ruled out a number of Henry tax review recommendations quite explicitly, but not the recommendation to turn on its head the personal services income tax regime that governed the way in which independent contracting and self-employed people interacted with the tax office.

Then, leading up to the most recent election, we could not get the government to repeat their assurance. We saw every weasel word, all the ducking and weaving—everything you could possibly imagine to tell the independent contracting community that something was on. Then after the ALP national conference, what did we learn? We learned through the media that a secret task force involving senior government ministers and unions had been set up to attack this very issue to undermine the reassurance that had been given. In recent weeks we have pressed the government for clarity: what are their plans? All we could get out of the new Assistant Treasurer, Bill Shorten, is that there is no desire for change. I am not sure what stimulates Bill Shorten’s desire, but being in secret meetings with unions may well go some way towards stimulating that desire. But could we get those simple, straightforward words, ‘no change’? No, we could not get that assurance.

Today in Senate estimates, when Senator Sherry was asked about his involvement in these secret meetings—meetings reported in the Financial Reviewand the unions’ involvement and the number of them before the election, Senator Sherry said, ‘No, there were no such meetings.’ You could almost hear the clunk as the Fin Review journalists fell off their chairs at what seemed a blatant contradiction of what is known to be the case.

Having sponsored this assault—this attack on self-employed and independent contracting people—and having lauded recommendations to turn on its head the very system that Labor promised it would make no change to, Senator Sherry was asked what representation he is now making on behalf of the small businesses whose minister he is supposed to be. Is he highlighting the grave concerns his own action has generated? We got told in Senate estimates: ‘Nothing to do with Senator Sherry anymore. He’s no longer the Assistant Treasurer.’ That is the point, Senator Sherry: you are now the Minister for Small Business. You are supposed to be out there advocating for the small business community, for the more than two million independent contractors and self-employed people. They are the backbone of so many communities. They are small business entrepreneurs. You are supposed to be their advocate. Simply saying that you will take no action, because you are no longer the Assistant Treasurer, just highlights how small business has been reduced to a sideshow within this Gillard government and how Labor just does not care for small business.

This complete neglect of a crucial community within our economy and a crucial group of people who provide opportunities and enterprise right across this continent must stop. Those people from Labor who claim, however falsely, that they have an interest in small business need to get their Minister for Small Business to take an interest. He was recognised as hostile to small business as Assistant Treasurer; he has proven himself to be completely indifferent and ineffective as minister now. Something has got to change. This cast on my foot reflects me trying to kick Labor into having some interest in small business. They need to get on with it and do it now. (Time expired)