Michelle Landry (Capricornia, National Party) Share this | Hansard source

The Australian Small Business and Family Enterprise Ombudsman Bill 2015 and the Australian Small Business and Family Enterprise Ombudsman (Consequential and Transitional Provisions) Bill 2015, are about providing a better service to our nation's small business owners. This sector is the backbone of the economy. Today's bills outline the appointment of an Australian Small Business and Family Enterprise Ombudsman. I will talk in more detail about this shortly. But first, let me highlight how the ombudsman's role will further complement the great things our government has already announced in the recent federal budget.

A few weeks ago the federal coalition government announced that mum-and-dad businesses will benefit from the biggest small business initiative in our nation's history. It is called our Growing Jobs and Small Business package. Small businesses, including Capricornia tradies, sole traders and partnerships, will get a tax cut to help boost the local economy. These tax cuts form part of the $5.5 billion Growing Jobs and Small Business package to help small businesses in places like Capricornia invest more, grow more, and employ more local people.

Significantly, small businesses with a turnover below $2 million can claim an immediate tax deduction for every asset they acquire that is valued up to $20,000. This is a substantial increase from the previous $1,000 threshold. For example, if a small takeaway shop in North Rockhampton needs to buy new kitchen equipment, a new coffee machine, hot food display boxes, gas stoves or fridges, the owner can take advantage of this generous tax-related incentive. Any item under $20,000 is immediately 100 per cent tax deductable in its first year.

A business is not restricted to just one item but can purchase multiple items of up to $20,000 each. From 1 July, the government will cut the company tax rate for incorporated businesses with annual turnover up to $2 million from 30 per cent to 28.5 per cent. From 1 July, the government will also provide a capped tax discount of up to five per cent for sole traders, trusts and partnerships which are unincorporated businesses and have an annual turnover under $2 million. As a result, small businesses—including those in Capricornia—will have the lowest company tax rate for public and private companies since 1967. These and other measures are significant in a time when small business has been doing it tough.

As a former bookkeeper, I have been a small business owner myself. I know, as any other small business owners do, that the maze of paperwork and recordkeeping, not to mention the various business laws that one must follow, can be confusing. In particular, the differences between state and Commonwealth jurisdiction and legislative requirements can sometimes cause conflict between a small business and government bureaucrats, particularly at a state level. That is why our government is delivering legislation to the House that will create an Australian Small Business and Family Enterprise Ombudsman.

I commend to the House the Australian Small Business and Family Enterprise Ombudsman Bill 2015 and the Australian Small Business and Family Enterprise Ombudsman (Consequential and Transitional Provisions) Bill 2015. These bills fulfil an election promise to help small business further. Let me borrow from my colleague, the Minister for Small Business, and his outline of this legislation during its second reading in the House. The minister indicated that there are more than two million actively trading small businesses in Australia. He said that 96 per cent of all Australian businesses are small businesses. This sector produces more than $330 billion of economic national output and employs over 4.5 million people. However, the minister acknowledges that small businesses are often treated as if they were large organisations with all the resources of major corporations. They face the same compliance demands in areas such as workplace relations, competition policy, contract law and business and tax law; but, while large corporations have teams of lawyers, accountants and experts, small business operators—which are often run by a mum-and-dad partnership—have to wade through this maze on their own. That is why the Small Business and Family Enterprise Ombudsman is an important role.

In short, the Small Business and Family Enterprise Ombudsman will be: an Australia-wide advocate for small enterprises; a single entry-point agency allowing access federal small business programs and support; an adviser to help ensure Commonwealth laws and regulations are more user friendly for small business; and a mediator for dispute resolution. One of the big benefits from the appointment of the ombudsman is in addressing inconsistencies and duplication of Commonwealth, state and territory laws, and state red tape that impacts on small business.

Government reports on this legislation indicate ways in which the bill will assist. Under an advocacy umbrella the ombudsman: undertakes research and inquiries into legislation, policies and practices affecting small business; reports and gives advice to the minister on these matters; contributes to inquiries by others into these matters; contributes to developing national strategies on small business matters; reviews proposals relating to small business matters and advises the minister on them; and promotes better practice in dealing with small business. The ombudsman will also have the power to require people to give evidence at hearings and provide information or documents to assist with research and inquiry activities. The ombudsman will respond to requests from small businesses for assistance by referring them to the appropriate Commonwealth, state or territory agencies.

The ombudsman will also play a role in dispute resolution by referring conflicting parties to mediation. This is expected to result in fewer costly disputes being pursued through the Federal Court system. As a result, the net economic savings from the ombudsman's function is estimated to be $18.395 million per year. In short, such a role will provide a strong advocate for small business owners in the 'David and Goliath' battles they sometimes face while trying to adhere to the complex laws and regulations that apply to the business world.

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