Wendy Askew (Tasmania, Liberal Party) Share this | Hansard source

To pay suppliers or to pay their child's school fees, to pay their own superannuation or to buy more stock, to pay the extra staffing hours so that they can attend their child's dance performance or, again, just miss out on attending—these are just some of the hard decisions that small- and family-business owners in my community are having to make daily due to the appalling support and outdated regulations that are offered by this Albanese Labor government. I rise tonight to speak of the challenges that these small- and family-business owners across our communities are facing.

Since this government came to power in 2022, it has never been harder to start, run or grow a small business. We are seeing increased red tape and regulation for both new and existing businesses; more obligations when it comes to wages, tax and superannuation; increases to the cost of wholesale products, largely due to both global and political uncertainty; and increases in both electricity and water charges, with no long-term policy solutions to bring these under control—all of this and more, while inflation has been out of control, causing interest rates on loans to also increase. This combination of poor government support and tough economic times has strangled businesses and squeezed their profit margins, and as a result we have seen more than 30,000 small business insolvencies under this Albanese Labor government. This includes those across an array of industries, including construction, hospitality, retail and manufacturing.

This already alarming figure becomes even more critical when it's realised that almost half of Australia's workforce is employed by our 2.6 million small and family businesses. Again, that's almost half of our workforce and their families that are reliant on the success of their businesses. Recent research suggests that 50 per cent of them are concerned about their long-term survival. It's important to remember here that we are not talking about big businesses and corporations. We're talking about hardworking Australian families who drive the economic activity in this country. With these figures in mind, you would think that, instead of mandating more costs and more red tape for these businesses, we could implement long-term solutions and policy decisions that enable their growth and encourage their success. However, the proof is in the numbers, and the fact is that there are more business insolvencies happening per quarter under this government than ever before. This has surpassed the previous record set by the Labor government led by former prime minister Julia Gillard in 2013, whose term saw an average of 2,648 business insolvencies per quarter.

Businesses in my home state of Tasmania have not been immune to these challenges. I have met with many who are calling for urgent regulation reform for the industry. Recently, Launceston has seen the closure of multiple businesses that have been stalwarts of our city. They include a newsagency that operated for almost 50 years. Prior to closing the owner had not had any personal or annual leave in nine years and highlighted increased costs and tough economic times as the reason for closing. This message has been echoed by other business owners that I have spoken with in our community, who have mentioned the nationwide skills shortage as another key concern. I have met with small-business owners who have worked through illnesses and grievances so that they can make ends meet. Even more recently, I spoke with multiple small-business owners who, due to the latest wage and superannuation increases, have had to drop staffing hours and increase their own time on the ground to minimise this added cost. This means that our already time-poor small-business owners must stretch themselves further to offset record-high costs to their businesses—all of this in a desperate attempt to make a living and turn a profit.

What makes matters worse is that this Albanese Labor government are making these decisions without consulting the small business industry or key stakeholders. In other words, they are failing Australian families. Recent figures released by the Council of Small Business Organisations Australia, COSBOA, revealed that 73 per cent of respondents want more government support for small businesses, while 80 per cent of respondents say that red tape is holding their business back.

Bandaid solutions like temporary tax cuts and one-off electricity rebates do not meet the needs of these brave people who are battling through business conditions that they have never seen before. Small businesses are being hit with a new compliance burden almost every month under Labor. To date, we have seen 35 major Fair Work Act changes under this government, 34 of which disproportionately affected small business. Business owners are spending 15 hours a week on compliance, taking them away from running their businesses, impacting on their family life and often their mental health. It's time for the Albanese government to stop letting unions influence policy that is strangling business and start implementing industry guided policy and reform that will, in turn, enable business growth and business confidence. (Time expired)