Julie Collins (Franklin, Australian Labor Party, Minister for Small Business) Share this | Hansard source

The Albanese government is delivering a better deal for small businesses, easing current cost pressures and helping them to improve their long-term resilience. This bill delivers on two key elements to support small business.

Schedule 1 will implement a $20,000 instant asset write-off for businesses with a turnover of up to $10 million. This will help small businesses to invest and grow, for example, through buying a new piece of machinery, or upgrading their assets. The $20,000 threshold will apply on a per-asset basis, so small businesses will be able to write off multiple assets. Assets that are first used or installed, ready for use, between 1 July 2023 and 30 June 2024 can be immediately deducted under this measure. Whether it's a coffee machine for a cafe, a computer to manage a business or a trailer for a tradie, this measure will provide real support for small businesses. We estimate this will provide around $290 million in cash flow support to small businesses right across the country.

Schedule 2 of the bill will implement the Albanese government's small business energy incentive and complement the instant asset write-off. This is a 20 per cent bonus tax deduction to help small and medium businesses invest in energy efficient assets and upgrades to improve their long-term resilience and to save on their energy bills. We estimate up to 3.8 million businesses with a turnover of up to $50 million will be able to claim a 20 per cent tax deduction for total expenditure of up to $100,000. This will help pay for upgrading heating and cooling systems, installing batteries and switching to energy-saving electrical goods, such as efficient fridges and induction cooktops.

This incentive helps ensure small and medium sized businesses share in the benefits and opportunities of the energy transition that's now underway. It will support investments that deliver ongoing power bill savings for businesses, while at the same time helping Australia lower our emissions. Eligible assets or upgrades will need to be either first used or first installed and ready for use between 1 July 2023 and 30 June 2024. This measure is expected to provide around $310 million in support to SMEs over the forward estimates. The incentive has been specifically timed to help small businesses lay the foundations for their future growth. These are targeted, responsible support measures to help Australia's small businesses continue to grow.

This builds on a range of measures that we're taking to support small businesses more generally: targeted energy bill relief of up to $650 for around one million small businesses, in partnership with the states and the territories; making unfair contract terms illegal so small businesses can negotiate fairer agreements with larger partners; the $23 million that we've put aside to help small businesses build their resilience to cybersecurity attacks, through a new Cyber Wardens program; $18.6 million to help small businesses adapt and build resilience through digital technology, through the latest round of the Digital Solutions program; $15 million for small-business owners across Australia to access free mental health and financial counselling support; and ensuring small businesses get a bigger slice of the $80 billion the Australian government spends each year on contracts, with a 20 per cent target for government procurement.

This year I have met with small businesses in every state and territory, in the cities and in the regions. I've already brought together small-business ministers on three occasions to ensure we're working together to support Australia's small businesses. Our last meeting, which was held in Cairns last month, was the first one hosted outside a capital city. This is after the previous government failed to hold such a meeting for eight years. This just shows how our government is delivering and working with states and territories to deliver a better deal for small businesses. I'm proud that the measures we're introducing today will directly help many businesses. Backing in small businesses is part of the Albanese government's plan to build a stronger, sustainable and more resilient economy that delivers more opportunities for Australians. I commend the bill to the House.

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