House debates

Thursday, 5 May 2016

Questions without Notice

Economic Competitiveness

2:49 pm

Photo of Eric HutchinsonEric Hutchinson (Lyons, Liberal Party) Share this | | Hansard source

My question is to the

Photo of Kelly O'DwyerKelly O'Dwyer (Higgins, Liberal Party, Minister for Small Business) Share this | | Hansard source

Thank you very much to the member for Lyons. He is such a powerful advocate for the small businesses in his beautiful electorate. I have enjoyed on a number of occasions being able to go down there and meet with them directly.

First, what are we doing for small business? I can tell him that they are benefiting in so many ways from the Turnbull government's economic plan, a plan that is going to provide jobs and growth. As a winemaker, Steve is going to benefit from the record investment in the wine industry. Over the next four years, there is going to be a record investment of an additional $50 million in the promotion of Australia wines. Now this is going to turbocharge the investment and the growth through our exports, particularly through our new free trade agreements. I understand that Steve is so impressed with the government's budget announcements that he is now thinking of expanding his small business to extend it into a whiskey business, to do whiskey distillery. Why? Because next year we will be extending the brewery excise refund scheme to domestic spirit producers, including producers of whiskey, gin, rum, vodka, liqueur and producers of low-strength fermented beverages. Now Steve will be amongst 100 distillers eligible for a refund of up to 60 per cent the excise paid, which is around $30,000 per financial year, which he can reinvest in his business and he can reinvest it to purchase new equipment.

And, in more good news for Steve, the Turnbull government is expanding tax incentives and tax cuts for small businesses so that they reinvest in their businesses and they can create more jobs. More than $3 million small businesses will benefit from the government's cuts to tax and the change in the definition of small business from those with a turnover of less than $2 million to a turnover of less than $10 million. Steve's turnover is around about $2.5 million, and he is going to pay a company tax rate now of 27.5 per cent on 1 July this year—a reduction of 2.5 per cent. He will also be able to take advantage of the instant asset write-off off $20,000, and he will be able to restructure his business and take advantage of that with the rollover release.

Honourable Members:

Honourable members interjecting

Photo of Kelly O'DwyerKelly O'Dwyer (Higgins, Liberal Party, Minister for Small Business) Share this | | Hansard source

Now there are some risks. I hate to tell you that they are sitting opposite us. Because the member for McMahon says that a small business is a business with a turnover of less than $2 million. He will force Australian small businesses to pay more under Labor. That is because Labor are a handbrake on our economy, and on small business we do not stand in their way.

Photo of Andrew NikolicAndrew Nikolic (Bass, Liberal Party) Share this | | Hansard source

Mr Speaker, I rise on a point of order. For most of the answer by the small business minister, the member for Isaacs, inconsistent with standing order 62, has been loitering in the aisles, talking from outside his place and generally disrupting the proceedings of the House.

Honourable members interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Isaacs has been warned.

Mr Nikolic interjecting

The member for Bass will cease interjecting. I think I heard the member for Wakefield's voice again.

Opposition members interjecting

It was not? Okay. I am going to address this matter very briefly. Members should remain in their places. If I picked up everyone that moved around during question time, I would be disrupting it constantly. I say to the member for Isaacs: if you were doing that, you should not be doing that, but it might explain why I did not hear you interjecting.