Nola Marino (Forrest, Liberal Party) Share this | Hansard source

Like the previous speaker, I would like to acknowledge the work of the Minister for Small Business, the Treasurer and the Prime Minister in relation to their commitment to small business—and we have seen that very graphically displayed throughout this budget. The Australian Small Business and Family Enterprise Ombudsman Bill 2015 addresses the relationship between Commonwealth and state small business laws. Small business and family enterprises, as we know, play a very significant role in the Australian economy. The Australian Bureau of Statistics—which defines a small business as being one with fewer than 20 employees—has indicated that small businesses represent approximately 97 per cent of all Australian businesses and employ around 4.6 million Australians. Many small businesses are also family enterprises and they represent approximately 70 per cent of all Australian businesses. Of the over two million actively trading businesses in Australia, almost 96 per cent of them are small businesses and 3.8 per cent are medium-sized businesses.

Small businesses alone—those with fewer than 20 employees—account for 46 per cent of all of Australia's workers in the private sector. That is the reason I commend the work of the small business minister. That is why we in the coalition understand how important small business is and it is why we have placed such a strong focus on the needs of small business. Of course, small businesses know very graphically that they have never had a better friend in Canberra than the coalition. When I look around Western Australia, I see that 97 per cent of all privately-owned businesses in WA are small businesses and that they account for around one-half of private sector industry employment. There are 210,000 small businesses in Western Australia making up 43 per cent of all goods exported. Of course, the number of small businesses offering flexible hours has increased and there are a number of other real benefits through working for a small business.

In my own electorate there are 12,716 small businesses, and there are over 14,000 in the broader south-west. I looked at the breakdown of those businesses and there are: 3,550-plus in business services, 2,766 in construction, 1,990 in agriculture, 1,669 in distribution services, 1,236 in personal services, 682 in social services, 550 in manufacturing, 49 in mining and 31 in utilities. When you consider the services sector, the Treasurer talks about the fact that the services sector makes up 70 per cent of our economy but only 17 per cent of our exports. There is a great opportunity for many businesses in the south-west in relation to export and in relation to our free trade agreements. This is certainly facilitated by the decisions that we have made throughout this budget.

Even with this particular piece of legislation, we know that small businesses—those small and family enterprises—absolutely need a strong advocate who can represent their interests. A strong advocate can help small businesses and family enterprises by advocating on, for example, red tape, taxation and other issues and problems that they may face. A good regulatory regime can make a considerable difference to the productivity of businesses and decisions about when, or whether, a business should proceed with an investment—a critical decision that every small business makes because they invest their own money, they often mortgage their homes and they take huge risks.

The activities which the small business ombudsman may undertake to reduce the regulatory burden at the Commonwealth level include reducing administrative burdens—perhaps by suggesting simplifications to administrative forms and processes—by minimising the costs businesses incur in complying with regulations. We hear constantly from small businesses about the burden of red tape. It is the bane of their lives. They are so busy working in their businesses; the last thing they need is layer upon layer of red tape. When you see that we have taken $2 billion worth of regulation and cost out of the business sector, you know that we are certainly focused on business across the board and small business in particular.

The small business ombudsman could provide advice on matters affecting the interactions of small businesses and family enterprises with Commonwealth agencies. For those of us who are members of parliament, we understand that some of those people often knock on our doors. Another role for the ombudsman is to conduct investigations into industry sectors, in which small businesses and family enterprises face particular problems—and there are some particular problems. The ombudsman could make recommendations on practical solutions. What we want to hear from the ombudsman is practical solutions to reduce burdensome regulation.

The ombudsman presents a positive opportunity to establish a highly regarded advocate—someone whom small businesses can trust, perhaps like they trust this government, particularly after this budget. The ombudsman will act as a conduit for issues that small businesses and family enterprises face at the Commonwealth level and will promote a nationally consistent and coordinated approach to these issues. The ombudsman will also play a valuable leadership role in collaborating with the state small business commissioners, as well as coordinating with other state and territory officials in the small business space and with peak industry bodies. The ombudsman will raise the concerns of small businesses and family enterprises in interactions across both the public and private sectors. In this expanded role, as a Commonwealth-wide advocate for small businesses and family enterprises, the ombudsman will have information-gathering powers and this will be particularly important. The ombudsman will have the power to conduct hearings, to investigate matters and to make recommendations to the government. They are particularly important powers of the—Time expired.

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