I move:

That this House:

(1) condemns the Government for imposing higher costs on small businesses through the surcharge ban while allowing the Australian Taxation Office to stop accepting credit card payments rather than absorb merchant fees itself;

(2) notes small businesses are already facing near-record insolvencies, business closures and real profits still below where they were at the change of government, making further cost pressures harder to absorb;

(3) recognises that local cafés, community pharmacies, tradies and family-run businesses will be forced to carry costs that larger businesses may be better placed to negotiate or absorb;

(4) calls out the double standard of requiring small businesses to absorb merchant fees while the Government's own tax collector refuses to do the same; and

(5) calls on the Government to back small business, properly assess the cost of new regulation, and support a Small Business Act that requires Canberra to consider the impact of its decisions before imposing further burdens on small and family businesses.

On 1 October, the surcharge ban came into force. From that day, every cafe, every community pharmacy, every tradie and every family business in this country lost the ability to pass on the cost of accepting a card. The fees did not disappear, however; banks still charge them. Government simply decided that the person behind the counter would pay for them instead. On that day, the Australian Taxation Office announced it would stop accepting credit cards altogether. The commissioner said it was just not tenable for the ATO to absorb those costs. So I ask the government a simple question: If it is not tenable for an agency with the full resources of the Commonwealth behind it, how is it tenable for a cafe in Leongatha? How is it tenable for a pharmacy in Wonthaggi? How is it tenable for a sole-trader electrician running his business out of a ute in Drouin?

Eight days later, after a storm of criticism, the Prime Minister made a captain's call to delay the ATO's decision. Small business got no such reprieve—no transactional funding for the newsagent, no backflip for the hairdresser. They were simply told to absorb it. That is the double standard at the heart of this motion. There's one rule for Canberra and another rule for every other small business across this country, and it comes at the worst possible time. More than 14,000 companies entered insolvency in the last financial year. Most of them were small businesses. This month, the Australian Chamber of Commerce and Industry released its annual small-business conditions survey. More than a thousand owners responded. Rising costs are now their single biggest challenge, which was named by 63 per cent of them, and that concern has jumped 15 per cent in a year. Cash flow worries are up 12 per cent. Businesses reporting harm from red tape are up 11 per cent. Half of all owners are doing their own compliance—often late at night around the kitchen table. The chamber's chief executive, Andrew McKellar, said small businesses are right on the brink, with extremely limited capacity to absorb additional costs. He called it a warning to governments right across this country.

The franchise sector is telling a similar story. Franchise Council of Australia's annual survey, which I used to help conduct when I was its CEO, is now in its seventh year and is conducted independently by FRANdata. It covers more than 100 brands and over 12,000 small businesses—cafes, maintenance, retail, fitness, pet services and many more. One in four of those systems is pessimistic about the conditions over the next six months, and that is from a sector that is intrinsically optimistic by nature. When one in four is gloomy, that should ring alarm bells. Eighty-one per cent rate their concern about economic conditions, particularly high interest rates and inflation, as high or very high. This government received those warnings and handed small businesses another cost to absorb. These are not just numbers on a balance sheet. The Council of Small Business Organisations Australia, COSBOA, has reported that nearly 80 per cent of small-business owners are experiencing high levels of stress and sleepless nights, and close to 40 per cent say it feels more like depression. When government piles on more cost and complexity, it adds to that weight, and that is at the very essence of this motion today.

There is a longer term cost as well. Nearly a third of small-business owners are looking towards retirement, but there is no pipeline of younger Australians ready to buy those businesses. When young people start to see their parents and neighbours working harder for less and facing more risk and red tape, they've got to ask the natural question: is it worth it? I am seriously worried we're about to lose the next generation of young, talented small-business owners right across this country, and that is going to cost us jobs. It's going to cost our communities support and invigoration, and it's going to hurt regional towns in electorates like mine, in Monash. We need to stand up. This government has to do better.

Is there a seconder for this motion?

I second the motion and reserve my right to speak later.

I rise to speak against this motion, but I thank the member for Monash for giving us the opportunity to debate our supports for small businesses as well as discuss the impacts of the credit card surcharge ban. I know she's a hardworking member of her community and a welcome member of the class of 2025. Small businesses are such an important part of the communities that we serve and are an important part of my community in Menzies. From cafes and restaurants in Blackburn to independent retailers, pharmacists, tradies and family owned businesses across places like Doncaster and Surrey Hills, they create local jobs, they provide essential services, they drive economic activity and they serve as a really important place for community connection.

Recently, I've had the opportunity to enjoy some of the services of our local businesses. The Tunstall Square bakery has some of the best cinnamon doughnuts in Australia in my humble opinion. We've got Una Una, a great new bar that's opened in Box Hill. I grabbed a banh mi from a Bao Mi Vietnamese restaurant in Macedon Square. I've consulted regularly with our local traders around the Mont Albert traders, the Kerrimuir shops, the Whitehorse business network and the Manningham Business Network. They provide, as I said, really essential services and fantastic jobs for our local community. We know that every member of this side of the House and the members of the other side of the House engage with their local businesses to better understand the needs that they have.

We know that it's a tough time for local businesses, as well. Cost-of-living pressures mean that people do have less money to spend. The inflationary impacts of the war in the Middle East flow throughout the supply chain and increase the pressures on businesses. And we want to make sure that we're providing them with real and practical support. The member for Monash has raised our reforms to credit card surcharges and the way that small businesses and businesses deal with those. As I said, I thank her for the opportunity to provide the House with more information about that. We know that some businesses have raised issues with the impacts of that credit card surcharge ban, including ones that I've met with in my office. I think it's worth noting that 85 per cent of small-business owners did not surcharge. It's not accurate to say that every single business is affected by these things; 85 per cent of businesses did not apply a separate surcharge fee. It's particularly high in hospitality, which is why we might see it more in restaurants and in cafes. But, of course, when people are paying a tradie, a pharmacist or their GP, they probably haven't seen that surcharge applied. That's not to dismiss or minimise the impact on those that will no longer be able to apply that surcharge, but it is to put it in context and in perspective.

That 15-odd per cent of businesses may need to incorporate those fees into their costs, but I think it's worth considering the reasons for the reforms by the RBA and the ATO. Essentially, one of the main reasons is to make prices clearer for consumers by removing a separate card surcharge. We've all been at a cafe where we go up to the counter, expect to pay a certain amount for a coffee and pay a higher amount because of that surcharge fee. Often there's a little plastic or a paper sign beside the EFTPOS machine indicating that a surcharge fee will be applied, but that's not the price that we've seen on the menu. And so this just ensures there's greater transparency for consumers. The RBA did conduct surveys prior to applying this and found the overwhelming majority of consumers didn't agree with having to pay a different price than what's on the menu or the price tag. Seventy-six per cent said it's unnecessary and that it should stop, and 60 per cent said prices should be all inclusive—that we should just have the price that's on the menu or the price tag be what the customer is actually going to pay.

It's really important to note as well that we've reduced interchange fees. We've reduced the cost of accepting card payments for businesses. That means a lot of businesses are going to benefit. Their overheads will be less as a result of these changes. That's one practical way that we're making sure we're helping the small businesses in our community. Our reforms will also improve competition and transparency in the payment system. If businesses find that they are paying too much for those merchant fees from the bank, they should have a look around and find a lower provider.

In Grey, small business is the town. It is the cafe that opens at dawn, the pharmacy on the main street and the tradie who gives a local kid their first job. Under this government, they have been asked to carry more and more and more. Since 1 October, small business can no longer surcharge for card payments. The Prime Minister says that this will save Australians money every time they tap, but the cost of processing a card does not disappear just because it is no longer on the receipt. Someone still has to pay, and that someone is small business—and that is you, the consumer, through higher prices. At the end of the day, you still pay the surcharge; you just don't see it.

Many say this ban is bad because it removes the transparency that was there before. On the very day the ban started, the government's own tax office announced it would stop taking credit cards. Why? The commissioner said it would cost the ATO too much. If the taxman can't swallow the cost, then why are small businesses expected to do it? That's the double standard at the heart of this motion. After intervening and humiliating his Treasurer, the Prime Minister has pushed the tax office's credit card ban to the end of the next financial year. And who will pay the tax office credit card fees in the meantime? Well, the taxpayer. We do not need it delayed; we need it scrapped. Small business should not find out about decisions like this in the newspaper.

Then there's Labor's new 30 per cent minimum tax on trusts. Around 350,000 small businesses use a family trust. These are tradies, farmers and local shops—not tax dodgers. Some estimates have put restructuring and advice costs north of $10 billion. That is money spent on accountants and lawyers, instead of investing in staff, stock, equipment and new productivity measures. The Housing Industry Association has warned it would amount to 'a new tax on tradies, builders and small family businesses'. On Insiders, the Assistant Treasurer would not rule out the fact that some small businesses would be paying tax of up to 60 per cent. Why would anyone want to open a small business if you have to give 60 per cent to the government?

The Treasurer likes to boast about record numbers of new company registrations and business therefore booming, but CPA Australia pointed out the bleeding obvious—company registrations are growing much faster than GST registrations. That is not record business creation; that is record restructuring because of the changes to trusts and CGT. The only people celebrating are the accountants, and the costs keep coming. Power bills are up. Interest rates have risen 16 times under this government, which hasn't even reached five years. There was one interest rate rise in nine years of the coalition government.

A new car dealer in my electorate wrote to me about Labor's New Vehicle Efficiency Standard. He told me, 'The current pace of the New Vehicle Efficiency Standard may have unintended consequences for customers who rely on affordable, available and fit-for-purpose vehicles for their work, businesses and everyday lives.' That's from a small-business owner who is worried about his customers, who are also small-business owners. This carbon tax on cars will push up the price of the utes and the vehicles our regions depend on. It must go—and it will go—under a Taylor coalition government.

More than 14,000 companies entered insolvency last year. That is almost 40 every single day. When one shuts down in a country town, another one isn't opening. That is why the coalition is fighting for a small business act. It will give small businesses a right to be heard. So, instead of having the rug pulled out from under them, small businesses will have a seat at the table. We will scrap Labor's trust taxes, back the people who take a risk, employ locals and keep our towns alive. Small business should be backed, not billed.

For families, workers, small-business owners and community members across the Bellarine, Surf Coast and Geelong, access to fuel is absolutely essential. Locals in regional electorates like mine in Corangamite often have little choice but to drive, and, when petrol and diesel prices rise, the impact can extend beyond the servo, flowing through to freight costs and the price of goods and services. The Albanese government understands these pressures. I understand these pressures. I hear from people across my electorate, and I know how important it is that we continue to respond with practical action.

From the outset of the crisis in the Strait of Hormuz, our government has acted decisively to protect Australians from the worst of the global fuel crisis. Our recent budget delivered a historic $15 billion fuel security package, including $7.5 billion for the Fuel and Fertiliser Security Facility to help suppliers secure additional fuel shipments, $3.2 billion for the government controlled Australian Fuel Security Reserve and $2.9 billion in temporary petrol price relief. These are significant measures, and as a result there is now more fuel onshore in Australia than there was when the conflict in the Middle East began.

We have also taken action to ensure Australians receive a fair price at the bowser. The Treasurer has directed the ACCC to ramp up fuel price monitoring, and after the passing of our penalty legislation serious breaches of competition and consumer laws can now attract maximum penalties of $100 million. That's up from $50 million. We've also invested an additional $67.7 million to strengthen the ACCC's enforcement activities. The regulator is actively monitoring fuel prices and has announced investigations into alleged misconduct.

We have also strengthened fuel security in other ways. Our reforms are improving access to fuel stockpiles, increasing transparency around fuel supplies and requiring reporting of shortages of critical products, including diesel exhaust fluid and technical-grade urea. On fuel excise, we put in place a four-month reduction to help take the sting out of the sharp price increases triggered by the Middle East conflict. This was always a temporary measure, but the end of that relief does not mean the end of our cost-of-living work.

The Albanese government is delivering $17 billion in cost-of-living relief this financial year. That includes $3 billion in fuel excise relief. There's also $2.6 billion in energy bill relief, more than $2 billion in tax cuts and more than $2 billion in increased payments like the pension. We're also funding pay increases for early childhood educators and aged-care workers. We're investing a further $5 billion in health. That's for things like our Medicare urgent care clinic in Torquay. It's also ensuring more Australians can get the medicines they need with $25 PBS scripts.

The Albanese government is backing higher wages. It's acting on supermarket price gouging and supporting a fairer housing market. These are lasting measures, and they will help Australians to manage their household budgets. For eligible small businesses across Corangamite, making the $20,000 instant asset write-off permanent from next year will make a real difference, providing greater certainty when investing in equipment and running a business. That's good for small business, good for workers and good for regional economies like mine.

In closing, we all know the global economy remains uncertain, and government cannot control international oil prices. That's why we're focusing on strengthening Australia's fuel security, enforcing strong competition laws and providing real, tangible cost-of-living supports for people and families. I'll continue listening to my communities and advocating to support households, workers and businesses when they need it.

The time allotted for this debate has expired. The debate is adjourned, and the resumption of the debate will be made an order of the day for the next sitting.