Karen McNamara (Dobell, Liberal Party) Share this | Hansard source

Thank you. It is good to hear more congratulations on the positive things that this government is doing. Small businesses remember how Labor treated them when they were last in government and how they did not get a tax cut. They got a jobs-destroying carbon tax. They did not get an accelerated depreciation on assets; they got a confidence-eroding mining tax. And they did not get red-tape reduction; they got a burdensome and costly red tape. That is the difference between this government and the opposition. Members opposite should know better than to try and deceive our small business community.

The small businesses of Australia hold the key to our future prosperity. Approximately 96 per cent of all Australia's businesses are small business. Collectively, they produce over $330 billion of Australia's economic output and employ over 4.5 million people. This represents almost 43 per cent of non-financial private sector jobs in Australia. I am a passionate supporter of small business because I appreciate just how much they contribute to our economy. This is particularly true in regions such as the Central Coast where, collectively, small business is our largest employer. This package will assist the electorate of Dobell's 8,707 businesses to invest more, grow more and employ more. The government is well aware that slow economic growth is impacting on the labour market. Unfortunately, this is leading to increasing unemployment in some areas, such as the Central Coast, having a severe impact on the employment prospects of our youth.

While it is businesses which create jobs, there is a need, albeit limited, for government to reduce the impediments and encourage the right conditions for Australia's small businesses to grow and become more productive. Since my election I have been working alongside small businesses in my electorate of Dobell to identify and address the barriers that prohibit growth and employment opportunities. This government acknowledges that small businesses are typically more vulnerable to changes in economic conditions than larger businesses.

As our economy is currently in a state of transition it is essential that government policy supports small business growth and innovation. Reducing the tax rate for more than 90 per cent of incorporated businesses with an annual turnover of under $2 million is definitely a 'game changer'. This will benefit 8,283 businesses in Dobell, which is 95 per cent of all businesses in Dobell. Providing small businesses with a reduced rate of company tax will allow them to retain more earning for investment and increase cash flow. When speaking with local small business operators I ask them what they would do if they had more cash flow, and I am frequently told that they would grow their business. Small businesses understand he important role they play on the Central Coast, and they want to grow and provide new employment opportunities for locals. Increased cash flow means small businesses are better placed to create new jobs. This may mean a new admin assistant to assist the owner with paperwork, allowing the owner to concentrate on growing their business or even take a well-deserved break—many small business operators do not even have the chance to have a family holiday—and it may mean the first job opportunity for a young job seeker.

In addition, small businesses with an annual turnover of under $2 million will be able to immediately deduct each and every asset costing up to $20,000 that they purchase between 12 May and the end of June 2017. Cutting the company tax rate will cost the Commonwealth approximately $1.45 billion over the forward estimates, but this translates into a $1.45 billion injection into the Australian economy. In 2013-14, Australians started over 280,000 small businesses. Our $5.5 billion Jobs and Small Business package will create the right conditions for small businesses to thrive and grow. Members on the side of the parliament understand the importance of transitioning people from welfare to work. Every Australian who is capable of working should have the opportunity to do so. These measures will assist small businesses to create new jobs and help Australia's unemployed to access these jobs.

As I stated previously, providing incorporated small businesses with a reduced rate of company tax creates more cash flow. This is essential to ensuring that a new small business can survive and prosper. This will benefit 780,000 small businesses nationwide. In 2014 we saw the highest level of new company registrations on record. Businesses both new and old can have renewed confidence that they can grow, thrive, prosper and compete. New accelerated depreciation arrangements will particularly benefit new start-up businesses, which face greater up-front costs. The Herald Sun reports that small businesses plan to purchase new computers, tools, phones, work cars, technical equipment et cetera. These new assets will boost business productivity and innovation, allowing growth and the creation of jobs.

These bills will also ensure that the maximum amount of franking credits a small incorporated business can attach to its dividends in a year will not be reduced along with the tax rate. By doing so, we are allowing small companies to distribute surplus franking credits accumulated in previous years, reducing the tax their owners pay when they receive dividends. This will benefit owners of small businesses and effectively reduce the overall tax paid by shareholders, regardless of their marginal tax rate.

In the lead-up to the 2013 federal election, small business proudly proclaimed that they were ''too big to ignore'. This government agrees with them. We believe Australia is the best place to start and grow a business. This government knows that the best way to create jobs is to build a strong and prosperous economy. This knowledge was lost on the former Labor government. Dobell's small businesses were particularly hit by the economic mismanagement of the former Labor government. In 2013 TheDaily Telegraph reported that 'more businesses had shut their doors in Dobell than anywhere else in New South Wales'. This was a damning indictment of the former Labor government and totally unacceptable.

Over the next 15 years the Central Coast is expected to grow by 100,000 people. Our region will need an additional 45,000 new jobs to address the employment needs of this growth. This simply will not happen without strong small business. Small businesses in Dobell now have a new lease on life. Small businesses will be better placed to generate local employment in a region where over 38,000 people commute out of the region daily for employment. We will see more jobs created for our youth, addressing the ongoing youth unemployment issue that has afflicted the Central Coast for many years. This is real action for small business that will deliver real outcomes. I look forward to continuing to work alongside Dobell's local businesses to expand their opportunities and increase the prosperity of everyone in our community.

I commend the bills to the House.

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