Zali Steggall (Warringah, Independent) Share this | Hansard source

I rise to speak on the Treasury Laws Amendment (2020 Measures No. 6) Bill 2020. This bill, amongst other things, amends the temporary full expensing and backing business investment provisions in the income tax law to provide greater flexibility for entities to access concessions. The temporary full expensing measures were a cornerstone of the budget in getting businesses investment going again, and were very much welcome. They were the biggest single measure in the budget, worth an estimated $26.7 billion. Its focus on encouraging businesses to invest freely through full asset write-offs is a positive step to get the money flowing.

The tax incentives for businesses are an opportunity for businesses to drive real change towards their net zero targets. The temporary full expensing measures enabled by this bill combined with other measures, such as the instant asset write-off and the extension of the research and development tax incentive, allowed businesses to invest in their green recovery. These incentives total an investment opportunity of nearly $30 billion according to Treasury estimates. Businesses can invest in green energy through installing solar, batteries and smart meters. They can invest in their transport through electrifying their vehicle fleet to bring down their operating and maintenance costs. They can install electric vehicle charges to attract more customers to their business. They can reduce waste through investing in new and more precise technologies, such as laser cutting tools or deploying in-office paper recycling systems. These initiatives, and many more like them, will make so many businesses more competitive. Businesses have a time-limited opportunity now, over the next two years, to write them off.

I recently participated in a webinar, hosted by the Smart Energy Council, which reinforced the value of the green recovery and how the incentives can be used to help local businesses improve their efficiency and reduce long-term costs. The webinar was also attended by the CEO of the Council of Small Business Organisations Australia and by local businesses in Warringah, such as Colourmaker, who are making the most of these opportunities and spreading the word about the value it has created for them.

I encourage all businesses to look at the opportunities presented by these temporary full expensing measures. This legislation adds additional means for businesses to qualify for the temporary full expensing measure, so I urge the government to consider also making changes to the criteria for the cashflow boost payment that was rolled out to support small businesses through the pandemic. I've written to the Treasurer regarding this, in particular on the eligibility for the cashflow boost. Many businesses in my electorate have written to me, expressing their disappointment because they've been deemed ineligible for the cashflow boost due to the timing of their BAS lodgement forms. The two companies in particular that have written to me fell through the cracks of the eligibility for the program because of complications with mergers and acquisitions, causing a delay in the lodgement of their BAS. So I urge the Treasurer to consider the case of WOTSO, who operate a flexible business office space and, due to a de-merger, were not eligible for the cashflow boost, despite meeting all other criteria. Similarly for Elite Woodhams Relocation, who were formed as a merger between Woodhams International and Elite Executive Services—both of which had been in operation for over 20 years, with 13 staff between them. But their merger occurred on 1 March 2020, hence Elite Woodhams Relocation was not able to lodge on or before 12 March 2020. Accordingly, the merger of EWR would be eligible for a maximum payment of $100,000, should an exception be granted from the 12 March 2020 lodgement date. Clearly, these are just the cases where the technicalities of timing are making very legitimate businesses that would otherwise be eligible fall through the cracks. These businesses do require the support of the government to make it through the pandemic. Their operations have been severely curtailed by the government-imposed restrictions. Deeming businesses 'ineligible' goes against the stated purpose of the measure, which was to support businesses through the pandemic by providing cashflow boosts. I urge the Treasurer to consider amending this eligibility criteria to extend that cashflow boost to these businesses.

There are also some amendments in the bill to consumer data rights. Consumer data rights provide consumers, both individuals and businesses, with a right to effectively and efficiently access specified data, in relation to them, held by the business. The bill changes the administration of this right from the independent Australian Competition and Consumer Commission to bring the primary responsibility closer to the government in the Treasury department. There's no explanation in the explanatory memorandum for why this change is being made. However, to change the governance of the data right rules framework after just a year of its operation deserves, I would say, more explanation than is currently provided by the bill.

In conclusion, I thank the government and I support these measures, but I do urge businesses to look closely at the opportunities that they present, in particular for a green recovery through the temporary full expensing measure. I urge the government to review the eligibility of businesses for the cashflow boost to businesses, with a focus on those who have been through a merger or acquisition and, as such, the timing provisions make them fall through the crack. Again, an explanation in respect of the logic of the transfer of responsibility for the CDR rules from the ACCC to the Treasury would be welcome.

See this speech in context