Michael Keenan (Stirling, Liberal Party, Shadow Minister for Justice, Customs and Border Protection) Share this | Hansard source

Over the last several years, Australia has witnessed a number of momentous and devastating natural disasters. Local communities in every state and territory have faced physical, emotional and financial struggles in the aftermath of these disasters, with the pressures themselves exacerbated by a government that all too often focuses on its own political agenda in complete disregard of disaster resilience investment. The coalition understands the importance of ensuring disaster assistance not only reaches those individuals and communities affected by disaster for clean-up and recovery purposes but also reaches workers, employees, employers, small businesses and farmers who have lost income as a result of the devastating event.

Whilst constitutional responsibility for disaster prevention, preparedness, response and recovery is primarily vested with the states and territories, the significant detrimental effect large-scale disasters have on communities, households and individuals often calls for the provision of further assistance from the Commonwealth government. The coalition does not take disaster assistance mitigation or resilience measures likely. We will help small businesses get back on their feet more quickly after a natural disaster by providing the additional support they need.

The Social Security Legislation Amendment (Disaster Recovery Allowance) Bill 2013 will establish a new payment, the disaster recovery allowance, by replacing the current disaster income recovery subsidy. The bill amends the Social Security Act 1991, the Social Security (Administration) Act 1999 and the Income Tax Assessment Act 1936 to implement the assistance. The disaster recovery allowance consists of a short-term fortnightly income support payment for an individual whose income has been affected by a major disaster whether natural or otherwise. If passed, the measure will come into effect on 1 October this year.

The disaster recovery assistance package seeks to formulate the payment of ongoing assistance following a major disaster, which has until now been done by way of ex gratia payments and is separate from the Australian government disaster recovery payment. It is intended that either or both disaster recovery assistance and the Australian government disaster recovery payment could be activated in the event of a disaster, depending on the nature and effect of the particular event. The disaster recovery assistance is payable for a period of 13 weeks. If a person is still in need of income support after this date, they will need to qualify for another payment such as special benefit or Newstart allowance.

At this point, I would like to note the coalition's plan for small business emergency assistance. The coalition's plan recognises that small business, with the local community, plays an essential role in the recovery from natural disasters. There are three crucial aspects to our plan. Under our plan, a small business that has not experienced physical damage as a result of a natural disaster but still suffers a loss of income as a consequence will be eligible for a loan up to $100,000. Eligible businesses will be able to pay back these low-interest loans over a period of up to seven years at an interest rate of four per cent, consistent with the existing commonly used guidelines.

The second aspect of this plan is that the coalition will provide a GST and pay-as-you-go tax holiday to small businesses in disaster affected areas. Under current arrangements, small businesses are required to provide quarterly business activity statements by set dates each year. Instead, these businesses should have the option of a three-month extension for filling their business activity statements and not be required to remit their GST and pay-as-you-go payments until that time.

The third aspect of this plan is that a coalition government will waive, for a period of six months, any penalty interest for disaster affected small businesses failing to estimate their pay-as-you-go obligation accurately. This plan will help to stop viable and profitable businesses going bankrupt and keep local people employed. These are practical steps to assist disaster affected areas get back on their feet. We certainly look forward to having the opportunity to implement that plan to help small business if we do win the forthcoming election this year.

I am about to conclude my contribution, which makes me think that the Labor Party might want to get a speaker in here at some stage in the not-too-distant future. This particular bill is worthy of our support and it receives it. We look forward to being able to enhance disaster recovery assistance, in particular for small business, should we get a chance to form the next government after the election.

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