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

I thank the member for Forde for bringing this motion to the House. I join with my colleagues on this side of the House today on the second anniversary of the best thing to happen for small business—the election of the Abbott coalition government. We join today to acknowledge the small business owners of Australia.

Owning and operating a small business is not an easy task, and on this side of the House we represent a government doing everything possible to assist the small business sector. Those opposite, unfortunately, left a tragic legacy on Australian small business. During the six years of the previous Labor government, around 519,000 jobs were lost in small business. This meant that around 1,544 jobs were lost each week. In contrast, in the two years since this government was elected, 335,000 jobs have been created. Labor promised a one-in, one-out approach to regulation, but they introduced more than 21,000 new and amended regulations and only repealed a fraction of this number. Under the current government to date, we have delivered a total deregulatory saving of $2.45 billion.

As to whom to acknowledge for this total contempt for small business, it is difficult as the previous Labor government had six different small business ministers, five of those within a 15-month period. This is an indication of how little commitment Labor had to this sector. When the Howard government left office, with regard to government regulation Australia ranked 68th on the Global Competitiveness Index. After six years of Labor, Australian business was so tangled up in red tape that we slid down the ladder to 128th place. This meant that 127 countries had less of a regulatory impost and government red-tape burden than Australia.

This kind of environment was disastrous for the Australian economy and only with the economic management of the Abbott coalition government has the situation improved. Part of the 2015-16 budget was the delivery of the largest small business package in the nation's history, worth $5.5 billion. This package builds on what we have already achieved for small business and will assist small businesses to invest more, grow more, and employ more.

The package includes tax cuts for all Australian small businesses to encourage investment and growth. These tax cuts include a 1.5 per cent company tax rate cut for incorporated small business, resulting in the lowest company tax rate since 1967. Further tax relief is provided in the package for unincorporated small businesses, by way of a five per cent tax cut. Providing incorporated small businesses with a reduced rate of company tax will improve small business cash flow. It will also promote growth and help small business compete more effectively with larger businesses and create jobs. It is estimated that up to 780,000 companies could potentially benefit from this measure.

The raising of the threshold at which small businesses can immediately deduct business assists is another initiative within the Growing Jobs and Small Business package. The threshold previously stood at $1,000. However, as of 12 May 2015 assets worth up to $20,000 can be immediately deducted.

I reflected earlier on the damage done to the small business economy in Australia by the multitude of former Labor small business members, but it would be remiss of me not to acknowledge the contribution of the Leader of the Opposition. The Leader of the Opposition should be ashamed for making unfounded announcements to small businesses in his budget reply speech. The most deplorable point is that his announcements ignored the two-thirds of small businesses which are not structured as companies.

Ninety-six per cent of all Australian businesses are classed as small businesses employing over 4½ million people and producing over $330 billion of our nation's economic output per year. There is no doubt small business is at the forefront of Australian jobs and growth, and the coalition is delivering for small businesses now and into the future.

Over 8,000 small businesses are based in the Dobell electorate, with this sector collectively our largest employer. Recently I had the opportunity to meet with small business owners Brendan and Nancy Small, owner-operators of family business SpotGo. Businesses like SpotGo have never had support from the federal government to the extent they are now. They are now receiving assistance. They are even exploring exporting opportunities into China, under the China FTA.

Unlike the previous Labor government, which neglected small business, this government is providing unprecedented opportunity. I commend the Prime Minister, the Treasurer and the Minister for Small Business, as well as paying tribute to the small business owners of Dobell and thank them for their contribution to the Dobell economy.

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