Jason Falinski (Mackellar, Liberal Party) Share this | Hansard source

I rise today to speak in favour of the Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2018, which is in favour of supporting Australian small businesses. Nine out of 10 Australian businesses are small businesses. They make up over 33 per cent of Australia's GDP, employ over 40 per cent of Australia's workforce and pay over 12 per cent of total company tax revenue. We are, in short, a nation of small businesses. My electorate of Mackellar is full of hardworking and enterprising Australians who are committed to making a difference. From the boutiques of Pittwater Place to the coffee shops of Narrabeen, Mackellar, like the rest of Australia, thrives when its small businesses are performing well. Never before has supporting small business been so important. Small businesses create jobs and investment and add so much to the Australian economy. However, they are often confronted with issues such as cashflow problems and disproportionately higher compliance burdens. This is where there is a role for government to conduct sensible policy and to create the conditions for good performance and growth.

This bill will amend tax laws to extend the period during which small businesses can access expanded accelerated depreciation rules by 12 months, to 30 June 2018. This includes the availability of an immediate deduction for depreciating assets, amounts included in the second element of a depreciating asset's costs and small business pools, with a $20,000 threshold still available rather than a $1,000 threshold. The amendment specifically focuses on businesses with an aggregated annual turnover of less than $10 million to ensure that there is scope for a variety of small businesses to make the most of the changes. Such amendments will facilitate and boost the capacity of small businesses to operate for another year by providing cashflow benefits and reducing red tape.

Depreciation can be a major issue for small businesses. Given that many are asset-reliant and have very little extra cash following asset purchases, the initial years of a business are when it is often most vulnerable and prone to failure, which is why it is important that the government enacts sensible policy to assist. Asset depreciation schemes are used around the world, such as those outlined in section 168 of the United States tax code. Other countries' providing such concessions requires us to match them in order to remain internationally competitive and to encourage investment in our small businesses and industries.

The coalition has a proud track record of supporting small businesses and giving all Australian entrepreneurs a fair go. We understand that the economy will not function to its full capacity without a thriving small-business sector. We also understand that it can be tough as a small-business owner to meet demands and to survive financially. The coalition is committed to reducing red tape in order to give small businesses a fair go. I know from experience how difficult it can be to go out on your own by starting a business and I know about the stress and uncertainty that can come with it. This is particularly the case when it comes to purchasing assets and the large costs associated with their maintenance. When Australians back themselves to start businesses they often make spending sacrifices in other areas of life so as to be in a position to buy those assets that are crucial to success. This can be extremely stressful and risky, and often puts individuals off pursuing business ideas in the first place.

Unfortunately, our contemporaries in the Labor Party do not share our passion for small businesses and the opportunities that start-ups create. Bill Shorten and his union bosses are not committed to jobs and growth. They are not committed to supporting hardworking Australian entrepreneurs.

Mr Rob Mitchell interjecting—

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