Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

in reply—I thank all honourable members who have participated in this debate. The members for Blair, Wakefield, Oxley and Corangamite gave very worthwhile contributions, as did, I must say, the members for Herbert and Casey. The member for Casey, my shadow minister, gave a well-considered and thoughtful presentation, as is usually the case. Unfortunately, we cannot say the same for the member for Moncrieff, the shadow minister for small business, who engaged in his normal bluff, bluster, sophistry and factual inaccuracies. (Quorum formed)

I will just take a few moments of the House’s time to run through the member for Moncrieff’s argument. Firstly, he said that the government’s changes to the PAYG repayment regime were his idea. He said, ‘They are just copying our policies.’ That is an interesting contribution from the member for Moncrieff, because I looked back at all his press statements and at all his speeches—I even consulted with my honourable friend the Minister for Small Business, Independent Contractors and the Service Economy—and I found that he had never called for change to the PAYG regime. Never did he call for the inflator to be reduced.

He did have a policy of changing the variation allowed, from 15 per cent to 30 per cent, but that is very different to our policy—that is on application and would still leave small business potentially open to a very large tax bill at the end of the year. As the minister for small business points out, it has not made their six-point plan on small business. So the member claims credit for the government’s initiatives but the policy he refers to is not even in the opposition’s six-point plan for small business.

He acknowledged that the government’s small business and general business tax breaks for investments might help a small number of small businesses—he says that it may have a small impact on the margin. In the last week, along with other economic ministers, I have been out in the electorates and in the regions of various parts of Australia talking to small business. Every single small business group that I spoke to congratulated and thanked the government for the small business and general tax break. We saw the thumbs up from the small business groups across the country. I am sure the minister for small business would agree that, in his activities over the last week, he had the same feedback. Unfortunately, the shadow minister for small business appears to be a little out of touch on that one.

We find the shadow Minister for Small Business covering the lack of opposition policies by always making the same speech. He could send in a cardboard cut out and press play on the DVD player, because we always get the same speech about small business issues. But he never points out that their other policy, part of their six-point plan, on loss carry-backs would increase the budget deficit by $1 billion. This is the opposition that is concerned about the budget deficit and argues so forcefully that we must have a lower deficit and a lower debt, and yet this policy of theirs would increase the budget deficit by $1 billion. And it would not provide any cash flow relief to small business until 1 July 2010, not 1 July 2009. We could live with 1 July 2009; that would be good; that would be fine. But as for 1 July 2010, I do not think that small business, which finds itself in cash flow difficulty, would appreciate a policy which provides relief from 1 July 2010. That is a long time to wait for cash flow relief.

The contributions from all the other honourable members—the members for Casey, Herbert, Blair, Wakefield, Oxley and Corangamite—were very worthwhile contributions. Unfortunately, I cannot say the same for my honourable friend the member for Moncrieff.

Schedule 1 makes amendments to ensure that there are no inappropriate tax consequences arising from payments made under the financial claims scheme which this parliament enacted in October last year. Under that scheme, APRA can make payments to account holders in failed financial institutions and to claimants under general insurance policies with failed insurance companies. This is a very important measure for that reason.

Schedule 2 increases access to the small business CGT concessions for taxpayers owning passively held CGT assets. These amendments will extend access to the small business CGT concessions to circumstances that do not currently meet eligibility requirements. Taxpayers who own a CGT asset used in a business by an affiliate or entity connected with the taxpayer and partners owning certain CGT assets used in a partnership business will have access to the small business CGT concessions via the small business entity test from the 2007-08 income year. This schedule also makes a number of minor amendments to clarify aspects of the existing small business CGT concession provisions so that they operate flexibly and as intended.

Schedule 3 amends the law to provide a general exemption from CGT for capital gains or capital losses arising from a right or entitlement to a tax offset deduction or similar benefit. This amendment will ensure that a capital gain or loss would not arise for taxpayers in such circumstances or in other circumstances where taxpayers have a right or entitlement to a tax offset deduction or other taxation benefit.

Schedule 4 provides refundable tax offsets for eligible projects under the government’s $1 billion National Urban Water and Desalination Plan. Under the plan, eligible projects may receive a rebate of 10 per cent of the eligible capital costs up to a maximum of $100 million per project. This schedule implements the refundable tax offset component of the plan and delivers on the government’s election commitment.

Schedule 5 amends the Income Tax Assessment Act 1997 to specifically list four new organisations as DGRs and to extend the time period of three existing listings. Organisations with DGR status can collect tax deductible gifts. This schedule specifically lists or extends the listing of the Australasian College for Emergency Medicine, the Grattan Institute, the ACT Region Crime Stoppers Ltd, the Parliament of World Religions of Melbourne 2009, Yachad Accelerated Learning Project Ltd, St George’s Cathedral Restoration Fund and the Bunbury Diocese Cathedral Rebuilding Fund.

Part 1 of schedule 6 improves the integrity and efficiency of the Australian Business Register or ABR and helps position the registrar of the ABR to take on the role of a multi-agency registration authority. Part 2 of schedule 6 enables representatives of businesses to be identified by the registrar of the ABR for the purpose of communicating electronically with multiple government agencies on behalf of their respective businesses. These amendments facilitate the standard business reporting program, which aims to reduce reporting burdens for business by eliminating unnecessary or duplicated reporting and to improve the interface between businesses and government agencies.

Schedule 7 amends the Fuel Tax Act 2006 and related provisions elsewhere in the tax law to remove provisions that businesses must be a member of the Greenhouse Challenge Plus program to claim more than $3 million of fuel tax credits in a financial year. Without this amendment to the Fuel Tax Act, businesses would be able to claim fuel tax credits in excess of $3 million in a financial year after 30 June 2009. This would be inconsistent with the policy intent of the fuel tax credit system. The Greenhouse Challenge Plus program will cease after 30 June 2009. This outcome will be able to be achieved through the government’s Carbon Pollution Reduction Scheme.

Schedule 8 provides an exemption from tax for the clean up and restoration grants paid to small businesses and primary producers affected by the Victorian bushfires. This measure recognises the extraordinary hardship suffered by small businesses and primary producers in affected areas.

The bill was referred to the Senate Standing Committee on Economics, which reported on 7 May 2009 recommending that the bill be passed. I thank the opposition for their support, despite the comments of the member for Moncrieff, and I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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