Zaneta Mascarenhas (Swan, Australian Labor Party) Share this | Hansard source

I'm talking about manufacturing—

An opposition member: How would you know? You weren't even there.

I was in Australia, and I have firsthand lived experience, okay. What we saw in Western Australia was that we didn't have enough face masks in our hospitals. Do you know who built them? We couldn't get them from overseas. We had local manufacturers that decided to actually do that. So what we're in the process of doing is building up our advanced manufacturing capability.

The other thing that we also saw was skills shortages, and the truth is that what we saw under the coalition, from an immigration perspective, was that skills were cut out of the department. We had a reduction from 1,200 to 800 staff members. What did we see in the immigration system? We saw a massive backlog, and that's something that we've been actively working on.

The other thing that we saw was a coalition government that was denying that climate science was a reality and that we needed to act on our energy policy. That's something that this government did within the first two weeks of government. We went in and we basically said that we wanted to see action on climate change. We legislated that we would reduce greenhouse gas emissions by 43 per cent. If we had had a government 10 years ago investing in renewable energy and offsetting some of the issues that we have seen with gas prices in the Ukraine, we would have been in a better position. What this government is doing is investing in our energy infrastructure to make sure that small businesses, large businesses and households can have a decarbonised electricity grid that is not dependent on the opinion of a dictator over in Russia.

What I would also say is that when we saw these issues across Australia we said that we wanted to bring community groups, small businesses, large businesses, unions and the governments together—and we had a Jobs and Skills Summit. It was the first time that we had brought these disparate groups across Australia, and we went: how can we make Australia better to make sure we have great businesses with great jobs, with the skills that we need to deliver? So we did that.

The truth is that what the Albanese Labor government want to do is make sure that we support small businesses. That's why I'm very excited to speak in favour of the treasury laws amendment bill, which is about support for small businesses and charities.

There is no doubt that small businesses are the engine room of the Australian economy. Small businesses employ a huge number of Australian people, and this is why this government is delivering significant reforms to support small businesses across Australia.

The reforms announced by the government in last year's budget will help to boost resilience for small businesses. The range of practical new measures contained in the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill will help small businesses across the nation to prosper. When small businesses prosper, families prosper. When small business prospers, the economy prospers. When small business prospers, the whole nation prospers. But small businesses have a unique challenge that the government is aware of. That's why the government is taking proactive action to support small business with important measures.

Schedule 1 of this bill will implement a $20,000 instant asset write-off for one year. The new measure will operate to improve cash flow and reduce compliance costs for small businesses. What it means is that small businesses will aggregate annual turnover of less than $10 million and be able to immediately deduct eligible assets costing less than $20,000. This will be effective from the 2024 financial year. The $20,000 threshold will apply on a per asset basis. This means that small businesses can instantly write off multiple assets. It's targeted, it's responsible and it will help small businesses continue to grow—and growth means stability and jobs and security.

Schedule 2 of the bill will introduce the small-business energy incentive. The incentive was also announced in the 2023-24 budget. The measure is designed to help small businesses and medium sized businesses electrify and save on their energy bills. The new measure will affect up to 3.8 million small to medium sized businesses with an aggregated annual turnover of less than $50 million. These businesses will have access to a bonus 20 per cent deduction for eligible assets supporting electrification and more efficient use of energy. The truth is the thing that we're going to see, as electricity prices are reduced because the amount of renewables that we have in the grid, is that there will be a shift in businesses from using gas to using electricity. So the electrification of these businesses is really important, and it's also a step in the right direction to reducing our greenhouse gas emissions.

The new tax incentive applies from the 2024 financial year. Up to $100,000 of total expenditure will be eligible for the incentive, with a maximum tax bonus of $20,000. The new small-business energy incentive builds on the Albanese government's measures to help small businesses become more energy efficient. The program will ease pressure on their energy bills. It's another example of the Albanese government ensuring that we're supporting many Australians with expenditure relief so that they can enjoy the rewards from their work.

The Albanese government are taking action where the previous government didn't. The previous government overlooked the needs of small business. It didn't foster an environment for growth. Instead it stifled productivity through inaction, apathy and indifference—indifference to the needs of small businesses, indifference to the needs of Australian families and indifference to the needs of the nation. We now have a government that's responsive, proactive and focused—focused on the needs of small business, focused on the needs of Australian families and focused on the needs of the nation. We will continue to incentivise the nation's growth and make real benefits for all Australians.

This bill also introduces measures to support charities, and I think that all of us in this place can agree that we need to support charities better. In my electorate of Swan, there are over 400 charities. They range from religious organisations to those supporting the homeless, animal rescues, Indigenous support organisations and RSLs. Charities not only provide a valuable resource for vulnerable people; they also play a role in bringing the community together. They are an outlet for people to overcome loneliness by getting involved in volunteering.

The government recognises the importance of charities across the country, not just in Swan, and it has set itself a goal of doubling philanthropy by 2030. To do this, it needs a legislative framework to achieve this goal. Schedule 3 of the bill provides a pathway for up to 28 community foundations to be endorsed by the Commissioner of Taxation as deductible gift recipients. Their endorsement will be subject to them complying with ministerial guidelines setting out the purposes for which these gifts may be used. They will support foundations to undertake important work in their communities.

Schedule 4 of the bill amends the income tax law to specifically list Justice Reform Initiative Ltd and Transparency International Australia as deductible gift recipients and extends the existing listing for the Australian Sports Foundation Charitable Fund and Victorian Pride Centre Ltd. The Australian Sports Foundation is a valuable pathway for grassroots organisations to fundraise. It has significant success in supporting many local clubs and individual athletes achieve their dreams of competing on the national and international stage. I welcome the amendment that will further extend the capacity of organisations, such as the Australian Sports Foundation, to support our local clubs and junior athletes. This encourages philanthropic giving and supports the not-for-profit sector, as donors may claim income tax deductions for donations to organisations with DGR status.

Schedule 5 of the bill extends the Global Infrastructure Hub's income tax exemption for an additional year. It will mean that it will be extended from its current expiry date of 30 June 2023 to 30 June 2024. The extension will ensure that contributions and other income that the GI Hub received during the FY24 period will be exempt from income tax. Tax exemption status is granted to avoid subjecting these payments to income tax, because the GI Hub is funded by contributions from G20 members. This one-year extension will cover the GI Hub while it utilises current funding from its G20 members.

Amendments to the income tax law with respect to general insurance, to maintain broad alignment between accounting and tax, are implemented by schedule 6 of the bill. It's a provision that avoids the income tax compliance burden on the general insurance industry. The burden would be caused by the misalignment between the new accounting standard and the existing tax requirements. However, the government anticipated the impact and addressed the problem. It is a thoughtful, responsible and well-managed reform.

The current non-arms-length expense rules for superannuation entities is replaced by schedule 7 of the bill. It's a measure contained in the bill that will introduce new arrangements for general expenses and better target the application of these provisions. I'm pleased that these measures will operate to address the potential for very disproportionate outcomes. But, importantly, at the same time, it maintains the broader integrity of the superannuation tax system. Again, they are thoughtful, responsible and well-managed reforms.

The last provision, in schedule 8, clarifies the authority and jurisdiction of the Australian Financial Complaints Authority, AFCA, to consider complaints that relate to superannuation. The measure is required to provide a legislative response to the Federal Court's decision in MetLife v AFCA. Consumers will gain greater access to external dispute resolution, and I will say this: they're thoughtful, responsible, well-managed reforms, with the consumer at the forefront.

These measures form part of a reform package that will incentivise and foster growth among small businesses. This is a package that will support the role of community foundations and allow them to grow and explore new opportunities for funding and donations. These are foundations that are reliant on donors for their survival, to fund the important work they do in the community. Many of them are supporting vulnerable community members. This bill is an example of the Albanese government thinking broadly about the flow-on effect for the wider community, with smart, effective reforms.

Being responsive to the needs of the Australian people is what this government is about. What this government is not about is sitting back and doing nothing, which I feel is what the previous government did. It coasted at the expense of all Australians. This is a government that acts. These reforms will help small businesses, charities and community foundations continue to grow, to support jobs growth and support families. The bill will help contribute to stronger communities and better services, through small business and supporting our local clubs and charities. This is a goal for this government, and we are committed to achieving it. That's why this legislation is here today.

I commend the government for its advocacy and efforts to make sure that we respond to the needs of Australians, not sit back on our hands like the previous government did. I congratulate the ministerial team who have brought this forward today. I commend the legislation to the House, and I look forward to contributing further to the debate on this important legislation by a government that's not afraid to take action and make Australia a better place.

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