Ken O'Dowd (Flynn, National Party) Share this | Link to this | Hansard source

I rise today to highlight the mighty effort our small business owners put into the economy. There are 5.6 million people employed by small businesses across the country. I know my colleagues on this side of the House are passionate about fighting to help improve the environment for these businesses so they can thrive, employ more people, pay better and experience more growth. There are 16,821 small businesses operating in Flynn, including farmers such as cattle producers, those cultivating small crops, broadacre farmers, wheat and cotton growers, and those producing macadamia nuts, mangoes, blueberries, citrus, sugar cane, grapes and melons. Of course there are retailers such as stock and station agents, wholesalers, hotel-motels, caravan parks and gemfields, to name just a few. The corporate rate being cut from 30 to 27.5 per cent is a blessing for these companies. Over the next 10 years we plan to reduce the corporate tax rate further, to 25 per cent. There will be a huge improvement for small business, and I have been swamped with praise for this new policy of the coalition government.

The other great policy we have fought for is extending the $20,000 instant asset write-off, which can be claimed multiple times throughout the year. This will free up businesses to spend money on good assets that they could not afford before. It helps small business to help small business—there are opportunities to upgrade and modernise equipment: farmers buy motorbikes from the local dealer and stores purchase new registers and computers. Ross and Andrea Drayton run a small business in Emerald—the Central Bike Centre. The $20,000 write-off and the corporate tax changes have certainly helped their business. It has been a godsend. They are employing another apprentice because of the boost to their business. Business is going well now and it is having a flow-on effect—they have opened a new store and are employing builders, cabinetmakers, electricians et cetera in setting up his new showroom. Now that the threshold has been moved from $2 million to $10 million in 2017-18, this will benefit thousands of extra businesses across Flynn and thousands of workers across the country.

If Australia is to compete with the rest of the world we must have a competitive tax rate. For example, Qatar, an oil-producing country in the Middle East, has a zero personal income tax rate and a 10 per cent rate for corporations. Ireland has a 20 to 40 per cent personal income tax rate and a 12.5 per cent corporate rate. No wonder Apple has set up its business in Ireland. In Singapore there is a 0 to 22 per cent personal tax rate and a 70 per cent corporate tax rate. The USA is about to move from a 35 per cent to a 15 per cent corporate rate, at Mr Trump's say-so. In the United Kingdom there is a 19 per cent corporate tax rate. Small businesses are the heavy lifters of our economy. I am proud to be part of a government fighting to help them help this country. Remember, it is all about jobs, jobs and more jobs!

House adjourned at 19:58