Andrew Robb (Goldstein, Liberal Party, Chairman of the Coalition Policy Development Committee) Share this | Link to this | Hansard source

My question is to the Treasurer. I refer the Treasurer to his statement yesterday that 'a company tax cut is important for 2.7 million small businesses'. How does the Treasurer reconcile that spin with his own economic note released on Sunday which shows that only 720,000 Australian small businesses are companies and, according to the latest Taxation Office data, less than 300,000 of the 2.7 million small businesses actually pay any company tax?

An opposition member: He's gone into shock!

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I am always shocked by Curly over there, I can tell you that. Mr Speaker, we have—

The SPEAKER: Order! The Treasurer will remove himself from the chamber under the provisions of standing order 94(a).

The member for Lilley then left the chamber.

Mr Randall interjecting—

The SPEAKER: As will the honourable member for Canning.

The member for Canning then left the chamber.

Laurie Ferguson (Werriwa, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Small Business. What is the government doing to reduce the tax burden on small businesses to make sure they benefit from the mining boom? How will the government accomplish this, and are there any challenges that need to be addressed?

Brendan O'Connor (Gorton, Australian Labor Party, Minister for Emergency Management) Share this | Link to this | Hansard source

I thank the member for Werriwa for his question and his interest in small business. There are 7,000 small businesses in his electorate and they will all be beneficiaries of the government's decision to provide tax relief in the form of instant asset tax write-offs and company tax cuts. In answer to his question, and this is consistent with the question asked of the Treasurer by the member for Goldstein, I can assure the House and the entire country that the instant asset tax write-offs will apply to all of the 2.7 million businesses in this country. The fact is that this tax relief will be provided to incorporated and unincorporated businesses. That means that, whether you are a sole proprietor, an independent contractor, a microbusiness or a small business generally, you will be a beneficiary of the instant asset tax write-off of up to $6,500 for each asset. Further to that, there is a $5,000 tax write-off for company vehicles. That is in addition to the tax cut from 30c in the dollar to 29c in the dollar for incorporated companies, and there is further relief for those businesses that are unincorporated in the form of an increase to the tax threshold for individual taxpayers from $6,000 to $18,200. This government understands the need to provide relief for businesses across the country, which is the opposite position from that taken by the Leader of the Opposition and the coalition generally. Such a point of distinction between the government and the opposition is remarkable.

As a result of the legislation being passed in the Senate last night it is effectively the mechanism to distribute the mineral wealth during a mining boom. This is absolutely critical because, as we know, some sectors of our economy are confronting challenges, not the least of which is the high Australian dollar. For that reason we have to respond in kind to provide support and tax relief to those businesses in those sectors of our economy. Whether it be tourism or manufacturing, there is a need to provide support. This initiative provides support in the form of instant asset tax write-offs for small businesses which really do help with cash flow—particularly if you are a start-up business or a microbusiness. Certainly, the company tax cut will provide relief. The government is proud to do this and we do it for businesses. We just wish that Tony Abbott would get out of the way and support tax cuts for companies.

The SPEAKER: The minister has been in the House for a number of years and is well aware that the standing orders require him to refer to the Leader of the Opposition by his title.