Dick Adams (Lyons, Australian Labor Party) Share this | Link to this | Hansard source

Thank you for the protection!

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

I do not think you need it. The member for Lyons has the call.

Dick Adams (Lyons, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Housing, Minister for Homelessness and Minister for Small Business. Why is it important, Minister, to make sure that small businesses and their families benefit from the mining boom, and how is the government doing that through its budget?

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

I thank the member for Lyons for his very important question, because it goes to how the government can provide support for small business. The fact is that there are more than 2.7 million small businesses in this country and that they employ almost five million Australians. It is therefore very critical that we attend to their needs. As a result, the first important thing that this government did in relation to the budget was to ensure that it returned to surplus, because it creates the environment for monetary policy to work with government fiscal policy to improve the lot of small business. That is the first thing.

The second thing that I would like to say in relation to small business for Lyons and for every electorate around this country and for the small businesses that live within those electorates is that we have dedicated initiatives to ensure we provide support for small businesses. Firstly, there has been the loss carry-back initiative, a fantastic opportunity for those small businesses who seek to invest or innovate to claim losses of up to $1 million on taxes already paid on previous profits. This has been well received by COSBOA, by employer bodies and by small businesses across the country to provide opportunities for them. I also refer to the initiative that has been referred to by the Acting Prime Minister and the Assistant Treasurer insofar as the instant asset tax write-off is concerned. This is also a very important initiative, targeting small businesses who need to deal with cash flow issues. This provides an opportunity for a 100 per cent depreciation after one year on every asset purchased up to $6½ thousand. This is a fantastic initiative, one that has been embraced by small businesses that I have met, whether it has been in Grafton in regional New South Wales or whether it has been in Cairns or in Launceston or in Devonport or in the capital cities, where I have been meeting with small businesses to talk about those issues.

Of course, they have asked me: why is it that the Leader of the Opposition opposed the proposed tax cut for business? I had trouble explaining it because it would be the first time in living memory that a Liberal leader would oppose a company tax cut for businesses. It would be the first time that that had occurred. We said that, as a result of the obstinance by the opposition to prevent small business getting the tax relief, we would find another way to improve consumer and business confidence—and we have done that, dedicating resources to families across this country in order for them to be better off and to cope with cost of living pressures. We will keep dealing with these issues. This is important for small business and— (Time expired)