Cassandra Fernando (Holt, Australian Labor Party) Share this | Hansard source

Small businesses represent opportunity for people to take control of their work lives, create jobs and provide for their families. For multicultural communities like mine, starting of small business is more than just a way to make a living. It is a pathway for new migrants to build generational wealth, to establish roots and contribute to the broader Australian economy. Our government is aware that small businesses are facing significant pressures at the moment. As the member for Holt, I'm regularly in contact with small-business owners across my electorate in suburbs such as Hampton Park, Narre Warren South, Lynbrook, Lyndhurst, Cranbourne, Clyde, Botanic Ridge, Pearcedale and Tooradin. Their stories are proof of resilience and a reminder of the challenges they face. The owners of Spin a Yarn, a cafe and a yarn store run by two mothers next to my office in Cranbourne West, have spoken honestly with me about the difficulties they are currently facing with escalating electricity costs and the reduction in sales as people struggle with the cost of living. Pressure like this has made many small-business owners consider selling. That's a heartbreaking prospect for any family that has poured their heart and soul into their livelihood.

It is for small businesses like Spin a Yarn that this year's budget includes more than $640 million dollars in practical and targeted support. This support includes measures such as a $325 energy bill rebate and the extension of the instant asset write-off. These initiative are designed to ease the burden on small businesses, helping them to stay afloat and continue contributing to our communities. Small-business owners are also set to benefit under Labor's stage 3 tax cuts. With the average small-business owner in Australia earning approximately $76,000 a year, they are set to save an extra $1,600 per year than they would have under the coalition. These are practical steps the Albanese Labor government is taking to support small businesses.

Let me address the claims made by the opposition. They've attempted to paint a picture of unprecedented business bankruptcies under this government, but this is simply misleading. What we are witnessing today with business bankruptcy is a delayed consequence of the COVID-19 pandemic. Government policies during the pandemic kept insolvency rates historically low, as businesses were shielded from the full effect of the economic downturn. The Reserve Bank governor, who the opposition is fond of quoting, recently stated, 'If you look at the trend of insolvencies over time, we are not even back to where we were trend-wise pre-pandemic.' Let's be clear: no business going under in this country is good. Every closure represents a family, a dream and a loss for our community.

However, the opposition's attempt to twist the facts for political gain is not only unhelpful; it is also disingenuous. They are more interested in scoring political points than in genuinely supporting small businesses. This is the same opposition that ignores expert advice when it suits them, whether it's the advice of Reserve Bank governor or scientists at the CSIRO or the security concerns raised by the Director-General of Security at ASIO. The Albanese Labor government remains committed to backing Australia's 2.5 million small businesses. We understand the challenges they face, and we will continue to provide the support they need to thrive in these difficult times.

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