Tim Storer (SA, Independent) Share this | Hansard source

The Australian economy needs entrepreneurs. The parliament should foster an entrepreneurial spirit and give a fair go to those who are weighing up the risks of starting a business. Entrepreneurs are prepared to take risks to be successful and drive the economy. Entrepreneurs and small businesses should be supported and given confidence to invest and grow—for example, in collaborative structures with other businesses. We should not punish those entrepreneurs who worked hard in small businesses and made substantial contributions to Australia's economy in the process. It is unfortunate that that will be a consequence of this bill as currently drafted. I will return to that in a moment.

The new rules would act as a disincentive to growth, hurting thousands of small businesses—the very people our Prime Minister says are the engine of economic growth and jobs. Whilst I agree with the intention of the bill—that big businesses and wealthy individuals should not be able to access tax concessions designed to help small businesses grow—the bill also unintentionally smuggles in policy by stealth. It's actually misleading to suggest that these changes are merely an integrity measure. No-one wants to see loopholes in the law erode the tax base, but this legislation does appear to have adverse consequences for some small-business people who deserve support to grow and be successful.

The fact is that there are genuine small-business people who will no longer be able to claim appropriate tax relief as a result of this bill. I've had numerous consultations with business groups, in particular with Business SA, on this issue. They have cited that many of their members now face capital gains tax of hundreds of thousands of dollars each when they sell their share in their businesses, which can often be their entire retirement nest egg. The amendment I will seek to have passed will remedy that concern by making the new restrictions only apply to taxpayers who have significant other wealth, not to genuine small-business people who have worked hard to grow a business and employ Australians along the way.

At the same time as we debate these issues, a review is taking place by the Board of Taxation that will provide recommendations into precisely the issues being put forward in the bill. That review will:

… identify ways to improve small business tax concessions to ensure they remain effective, easily accessible, and well-targeted. … including how the small business tax concessions complement retirement savings policy.

It makes no sense to me that we would rush this bill through the Senate before that analysis is made available next month. The Senate could make an informed decision.

The Prime Minister has declared, as the benchmark for his administration, that he will give 'a fair go to those prepared to have a go'. According to Business SA, there are thousands of people in South Australia alone who have demonstrably had a go, who are inadvertently affected by this bill as it currently stands. Through their enterprises they have built businesses, employed South Australians and contributed to the prosperity of the state. What they now face, should this legislation be passed as currently drafted, is anything but a fair go. I urge the Senate to support the amendment I will be proposing or, at the very least, to delay passage of the bill until proper consideration can be made and consultations with stakeholders are held, in particular in reference to the Board of Taxation recommendations, to ensure that people who have made a lifetime contribution to the economy do not suffer the unintended consequences of this legislation.