Wednesday, 22 August 2018
Questions without Notice
My question is to the Minister for Small and Family Business, the Workplace and Deregulation. Will the minister update the House on how lower taxes support small businesses to invest and grow? What are the risks for small and family businesses of a higher taxing approach?
Yes, as the Deputy Prime Minister points out, sartorial elegance. I acknowledge that the premise of the question is simple: what do we believe on this side of the House? The people best placed to spend the profits of their small or family business are those that actually run their small and family business. Already, under the Prime Minister's and the Treasurer's enterprise tax plan, there are three million small and family businesses enjoying legislated tax cuts. In the member for Moore's state of Western Australia, some 250,000—in fact, in his seat, some 15,000—small and family businesses are enjoying the tax cuts.
What do these cuts amount to? They amount to around $3,000 for businesses with under $2 million in turnover. They are keeping around $3,000 of their money and reinvesting it—like small and family business operators in this country have done historically and will do into the future—back in their business. They are growing their businesses and employing more people. It's how the employment numbers are generated at the coalface in small and family business land. It's record jobs growth that is driven off the back of it.
I'm asked, 'What are the alternatives?' The alternative is to place the economy in the hands of a L-plater like the Leader of the Opposition. He has no real world experience. He has never operated a business in his life. He has never put his hand in his own pocket or put his family's home on the line. In fact, since coming to parliament, he has actively fought against those who do. The reality is that, in the last 12 months of when Labor were last in charge of the economy, 60,000 small and family businesses in this country closed. In the six years that they were in charge of this economy, between 2007 and 2013, there were 520,000 jobs lost in small and family businesses.
Compare the pair. On this side of the House, you've got tax policy that has been decreased to today and is decreasing to 2025-26, where, under the coalition's policies, businesses with up to $50 million in turnover will be allowed to keep more of their hard-earned profits. What will they do? They will reinvest in their businesses, as they have always done. They will reinvest in their businesses, back themselves and employ more people, and employ back-end supply chains in the local economy. Let's not forget: businesses don't exist in a vacuum. Businesses, irrespective of size, interact with each other in supply chains, generating local profits and local jobs. The difference is clear. On this side of the House, we will stand and fight for small and family businesses day in, day out. The other side will do absolutely nothing for them.