Vince Connelly (Stirling, Liberal Party) Share this | Hansard source

I was just making the point that in my wonderful electorate of Stirling there are 19,818 small to medium businesses. So for me, this policy is absolutely relevant and I look forward to its implementation.

Those businesses in Stirling will continue to thrive with strong and ongoing support from the Morrison government. Our support to small and medium enterprises is broad and it is detailed. To contextualise this new legislation, it's worthwhile to briefly reflect on just how extensive this government's support is for SMEs—support which includes tax cuts, instant asset write-offs, red tape reduction and cash flow improvements.

Ahead of the election we announced increased support to SMEs through the instant asset write-off scheme, which enables businesses to invest in machinery and equipment up to the value of $30,000. The tax rate for small businesses with a turnover of less than $50 million has also been reduced from 30 per cent to 27½ per cent, and this will be reduced further to just 25 per cent. When it comes to cash flow, the Morrison government is setting an example to make sure that small businesses are paid on time. From January 2020, the government has started paying invoices within five days for contracts up to $1 million. We will also require large businesses seeking to tender for government contracts to match this policy.

Now let's talk about trade. With regard to trade and export opportunities, the Morrison government has boosted the Export Market Development Grants scheme by $60 million for small and medium Australian exporters. We have provided more opportunities for Australian businesses with China, with Japan and with North Korea, as well as via the Trans-Pacific Partnership. We've signed the Pacific Agreement on Closer Economic Relations and agreements with Indonesia, Peru and Hong Kong.

Just last week I visited ADENCO, a water management and civil engineering company in my electorate of Stirling. This company is supporting the crucial mining sector in Western Australia. I was really pleased to congratulate them also on securing an Export Finance Australia loan. ADENCO proudly display an award they received from BHP iron ore called an 'Oresome effort' award. It's displayed in their reception because it's in recognition of their contribution to BHP's charter values, including sustainability and safety, which they are very passionate about.

Increasing opportunities for Australian businesses to sell goods and services overseas and partner with larger corporations forms a critical part of the Morrison government's plan to deliver a strong economy and another 1.25 million new jobs over the next five years. But we are not stopping there. It's our intention to improve SMEs' access to finance as well. That is because we on this side of the chamber understand what businesses need to thrive and understand that when SMEs thrive they create local jobs; they invest in the local community. Many small and family businesses find it difficult to attract passive equity investments without additional debt or giving up control of their businesses. The Business Growth Fund will provide long-term capital, enabling small businesses to grow while their owners retain control of their business. The Business Growth Fund will invest in established Australian small and medium-sized enterprises with revenue between $2 million and $100 million and a track record of three years of revenue growth and profitability. The Business Growth Fund will have a diverse portfolio, investing in a range of industries in both urban and regional areas. The final investment mandate for the Business Growth Fund will be agreed upon by shareholders within the next few months.

By contrast, Labor took an atrocious handful of policy settings to the last election—policies that would have taxed Australians and hurt businesses. Our coalition government's support for small and medium-sized businesses is steadfast, and we will continue as long as we have breath in our bodies because we are the party of small businesses and of local jobs.

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