Jason Wood (La Trobe, Liberal Party) Share this | Hansard source

I rise to speak in strong support of the Tax Laws Amendment (Small Business Measures No. 1) Bill 2015. It is great to see that the opposition is strongly supporting this budget measure. Sadly, the Labor Party has never been a friend of small business. We on this side know that small businesses are the engine room of the economy. It is great to see all the young ladies up in the gallery—they are waving to me—and I am sure that a lot of them will one day own a small business. It is a national economic, cultural and community reality that 96 per cent of all Australian businesses are small businesses. Combined, they contribute over $330 billion to our national economy, an incredible amount of money. They employ an amazing 4.5 million Australians. Everywhere you go in my electorate of Latrobe—whether it be driving through the suburbs of Emerald, Cockatoo, Gembrook, Boronia, Fern Tree Gully, Upper Gully or Berwick—there are a small businesses. All the shops there are small business people. There are a small business people in the houses too. In fact, one in three Australians active in our economy is employed in small business and more than four of every 10 private sector jobs rely upon hardworking small business people.

These enterprising men and women—and it is great to see so many women taking up small business these days—represent what it is like to be Australian. They are truly out there having a go. They are taking a risk and giving their best efforts to succeed in life not only for themselves but for their children. They display an extraordinary work ethic and a deep commitment to our country. They are prepared to mortgage their house. They are prepared to take a risk. That is what Australians are all about. Small business people are an amazing lot, because they are prepared to put their homes on the line to create jobs for their family. And they do without; they would rather put money into the business to see it grow. They apply all they have when it comes to finance and support to drive their venture and provide opportunities for themselves and the people they employ. They put dinner on the table for Australian families each night. They serve them, they feed them and they clothe them.

I congratulate the Treasurer, Joe Hockey, and also the Minister for Small Business, Bruce Billson. He has been an incredible ambassador for small business. We had him out in my electorate for a breakfast function. He makes small business very exciting. The company tax rate will decrease from 30 per cent to 28.5 per cent for small businesses with an annual turnover of under $2 million. That is fantastic news. Small companies will pay less tax for every financial year commencing on or after 1 July 2015. I recently had a small business event in my electorate. I was guest speaker with St Margaret's School. The principal, Doug Bailey, and the school community are doing a great job. Ron Wienzerl was another guest speaker there. These changes went down really well. They were excited about this government's changes to small business—in particular, the $5 billion injection to get small business right back on track and leading the economy.

This package will provide accelerated depreciation arrangements to small businesses and primary producers. This change is the centrepiece of the budget's small business package. Incorporated small businesses make an important contribution to the Australian economy. They, along with the unincorporated small businesses, account for the vast majority of active private businesses in the country and represent a large share of its employment. The Australian economy is facing significant structural adjustments. Small businesses are typically more vulnerable than larger businesses to shocks and changes in economic conditions. This makes it particularly important that, during this period of economic transition, the policy settings support small business growth and innovation. That is precisely what this budget does. This bill will amend the small business simplified depreciation rules in the tax law to increase the threshold for immediate deductibility from $1,000 to $20,000. This is a significant increase in the threshold and a massive gain to cash flow for small businesses. It is estimated that up to 780,000 companies could potentially benefit from this measure.

Looking specifically at my electorate of La Trobe, there are many local examples that demonstrate the benefits of this bill on the whole. I have spoken with many local business owners who welcome the support and recognition that the federal government will give in this bill. I know that Karen Rook, from Piccaninny Recycled, will be glad to have the $20,000 tax write-off available to her so that she can re-fit her store if she chooses to do so. I know that Michael Muaremov, from Michael Muaremov & Associates, will be pleased to have the 1.5 per cent tax cut. It will allow him more room for investment and further employment of even more local staff, as he already has been doing for the last 15 years, and I am sure he will be advising all his clients of the changes. I know that Ron Wienzerl from APT Engineering will be happy to see growth in our local small business development, thus providing a boost for the whole locality. I know that Christina and Anthony from Mountain Harvest Foods will be happy to immediately deduct all eligible capital expenditure on fencing and water facilities in their farming area. I know that Graeme Bulte of Aquaterro will be happy to hear of increased employment in our area as a result of tax reductions, thus improving productivity in our whole region.

In conclusion, because I want to allow more speakers to speak on this bill, this is fantastic in order to get the Australian economy moving again. Small businesses are the people who cut our hair and our keys, sell our meat and our clothing, make our coffee and our furniture, do our taxes and our laundry, fix our cars and our roofs, and grow our flowers and even our potatoes. There is virtually no industry that small business does not operate in. Small business is the backbone of the Australian economy. It is the backbone of our nation. And the coalition recognises this with the Tax Laws Amendment (Small Business Measures No. 1) Bill 2015. This bill helps our nation prosper and grow, and I proudly support this bill in the House.

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