David Bradbury (Lindsay, Australian Labor Party) Share this | Hansard source

The shadow minister at the table is asking whether any of these measures have delivered any additional jobs. I was talking a moment ago about the first home owners grant. Specifically on that point, the Minister for Housing was pleased to report to the House the other day that recently at Ropes Crossing, Delfin Lend Lease, in response to the uptake in demand for the housing as a result of the first home owners grant, have now had to put on an extra 36 people in my local community—36 extra people. So, as to whether I am able to produce evidence of one job, I have produced evidence of 36. Clearly, there are many more jobs in my local community that are being delivered as a result of the stimulus efforts of the government, but that is just one example.

I also wish to comment briefly on some of the other measures that complement the 20 per cent reduction in PAYG instalments by directing my comments towards the small and general business tax deduction, which was originally announced at 10 per cent but then was increased to 30 per cent as a result of the most recent stimulus package announcements. I mentioned earlier the good work of the Penrith Business Enterprise Centre. John Todd reported to me recently that his office has received numerous phone calls requesting more information about this particular measure. He said, ‘It’s clearly a measure that’s getting out there. I think it is being promoted by the accountants as something that will assist local small businesses and, as a result of that, there is real interest in this measure.’ It is a significant measure because it will not only encourage businessowners not to defer making an investment in a capital item for a business but also enable people to bring forward some of those purchases. It is significant because of the flow-on effects from that investment having been made. I note that the opposition has been critical of this proposal. At the time of the announcement, the Leader of the Opposition made some comments in relation to the stimulus package, and I quote him from a doorstop, where he said:

You see what he has offered—

and I am assuming he is referring to the Prime Minister—

small business, the only thing he has offered small business in this package is a 30 per cent depreciation, a tax deduction in effect, for equipment purchased this year. But if you’re a small business and you don’t need any new equipment, maybe you’ve got all the equipment you need, or you’re struggling with your own cash flow problem, that actually isn’t much help at all.

I would not expect the Leader of the Opposition to acknowledge the benefits that flow from the PAYG initiative, the reduction in instalments required to be paid. It is not his job to promote the good aspects of government policy, but I certainly wish to ensure that the positive benefits of that measure are noted here today.

Let us look at what the Leader of the Opposition said. He said, ‘This is of no real benefit to small business and certainly does not provide any immediate or direct stimulus to the economy.’ I find it extraordinary that, just a few days earlier, the Leader of the Opposition made some comments in relation to his own proposals for depreciation allowances and various tax deductions and he made a completely contradictory point. On that occasion, a journalist asked him a question in relation to his proposals:

That won’t have any short-term stimulus effects, will it, or even medium-term?

Mr Turnbull’s response was:

… with great respect you are completely wrong, because if you provide accelerated depreciation and an incentive for people to invest in more efficient buildings, more efficient water systems, more efficient lighting systems, they’ve got to hire a contractor to do the work. And so immediately people are put to work. So that’s the type of policy that will get you an immediate pay-off in economic activity and in employment.

What I fail to understand here—and I think I fail to understand it because of the logical inconsistency in what the Leader of the Opposition has said—is how the Leader of the Opposition’s depreciation allowance is going to create economic activity, short-term stimulus and jobs, yet our proposal is not going to deliver that. (Time expired)

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