Melissa Price (Durack, Liberal Party) Share this | Hansard source

I rise to speak in support of a motion by the member for Casey, which correctly points out that Australia's small business sector is at breaking point. They're at breaking point because of the economic incompetence of those opposite and because of their cost-of-living crisis. Small businesses are not immune to higher rents, higher energy bills, higher prices for goods and, of course, the dozen interest rate rises that have occurred under this government.

All of this cost-of-living pain has led to another record being set by the Albanese Labor government and, once again, it's not a record to be proud of. Data released by the Australian Securities and Investment Commission show the number of businesses that entered into insolvency last financial year was 11,049. That is the highest number ever recorded. By contrast, the number of insolvencies in 2020-21, when we were in government and we were combatting a once-in-a-century pandemic, was 4,235. In my home state of Western Australia, 733 businesses entered into insolvency last financial year. Not surprisingly, businesses linked to the construction sector accounted for the most insolvencies, which, of course, only exacerbates our housing crisis. This was followed by insolvencies in the accommodation and hospitality sectors.

Unfortunately, it doesn't seem like this will be a record for long. Gayle Dickerson, who sits on the Turnaround Management Association board has said:

We're not at the peak yet. The consensus and my view is we've probably got another 12 months really kind of still ramping up before we hit the peak.

This is reinforced by results from the Chamber of Commerce and Industry's WA business confidence survey, conducted earlier this year. That survey found that 18 per cent of businesses believed they were at risk of closing or were significantly scaling back their operations this year. Think of it: that's almost one in five businesses.

At a time when businesses are hurting more than ever before, you would think those opposite would do something in their power to put downward pressure on inflation and provide support to the sector. Unfortunately, they are not. In fact, under those opposite, as we know has been well reported, inflation is heading in the wrong direction, with Australia an outlier amongst advanced economies. Instead of providing support to businesses, Labor has chosen to make it harder by adding further costs, confusion and complexity to the industrial relations system.

I recently wrote to the small businesses across my Durack community about these reforms. I also sought their feedback on what issues they would like to see us address in this place. The top five issues raised with me were (1) cutting and simplifying red tape, (2) rising insurance premiums, which are a big deal in WA, particularly across the north, (3) lower, simpler and fairer taxes, (4) difficulty finding skilled staff and affording wages costs, and (5) ensuring affordable and reliable energy.

Let's consider whether Labor are addressing these concerns. In regard to red tape, the industrial relations reforms of those opposite have only made an already far-too-complex system even harder to navigate. One of the biggest issues for small business is that casual employment has been redefined. Before these changes, a casual employee was defined solely by reference to the terms of the employment contract. The new definition consist of 15 factors that consider the real substance, practical reality and true nature of the employment relationship. These changes would effectively stop casuals working regular patterns of work. We know this will disproportionally impact small businesses, as they employ 80 per cent of Australia's casual workforce.

What about taxes? The coalition has proposed extending the instant asset write-off to $30,000 and making this an ongoing for businesses. Labor voted against this proposal, leaving the scheme at $20,000 and due to expire. I also note when we were in government we reduced the small business tax rate from 30 per cent to 25 per cent. This meant that the tax rate was at its lowest level in 50 years.

They are no good on red tape and no good on taxes. What about ensuring affordable and reliable energy? I don't think I really need to say much more about that. Labor, you need to do better.

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