Dai Le (Fowler, Independent) Share this | Hansard source

I move:

That this House:

(1) acknowledges that:

(a) small and medium-sized enterprises (SMEs) are fundamental to the Australian economy, contributing significantly to job creation, economic resilience, and particularly in the manufacturing sector, where their role is vital to the national interest;

(b) manufacturing is a leading employer in the electoral division of Fowler, employing approximately 12 per cent of the local workforce, significantly higher than the national average of 5.9 per cent:

(c) hundreds of manufacturing businesses in the electoral division of Fowler produce essential goods across a variety of sectors, from food production and building materials, to medical supplies and recycling initiatives;

(d) manufacturing SMEs are grappling with rising operating costs, a shortage of skilled labour, and limited access to critical resources;

(e) the Government's Future Made in Australia plan, introduced in May 2024, does not sufficiently address the challenges facing the manufacturing sector; and

(f) manufacturing SMEs deserve a fairer share of Government support to achieve sustainable growth, scale effectively, expand employment opportunities and remain competitive amid growing domestic and international pressures;

(2) notes that the Government's recent relief measures, such as the one-year extension of the $20,000 instant asset write-off and a $325 electricity rebate for small businesses, were positive steps, however fall short of addressing the long-term, systemic challenges faced by small and medium-sized manufacturers; and

(3) calls on the Government to provide comprehensive and sustained support for small and medium-sized manufacturing businesses by:

(a) increasing the instant asset write-off to $50,000 and extending it indefinitely, to support capital investment in small and medium manufacturers and enable them to remain competitive as plant and material prices continue to rise;

(b) promoting manufacturing as a career to young Australians and migrant workers by continuing and expanding government investment in training initiatives, apprenticeships, English language training and foundational skills development to fill critical labour gaps and provide certainty for employers to boost productivity within the sector; and

(c) supporting lowering the cost of doing business by addressing the escalating costs for insurance, freight, energy, and compliance, which disproportionately impact small and medium manufacturers.

It has been a challenging year for many Australians—families, students, elderly and small-business owners—especially those living in Fowler and Western Sydney. Whether it is combatting the rise in the cost of living or striving to keep their small businesses afloat, Australians are feeling the pressure and are in need of effective policy measures that will support them during this difficult time.

I have knocked door to door within my Fowler electorate and have held numerous forums to understand the pressing issues and needs of my constituents. Recently I held a manufacturing forum and engaged with small and medium-sized businesses and enterprises—SMEs—within the manufacturing sector to discuss pain points and opportunities. These are some of the comments that the attendees shared: 'I may have to consider scaling down my business as I cannot afford to operate it.' 'How does the $325 electricity rebate provide enough support when my electricity bill is $10,000?' 'My equipment costs more than the instant write-off offered. Can the government expand this?' 'I'm having trouble attracting talent within our industry. We are short staffed.'

This was the recurring theme within the manufacturing forum: SMEs grappling with rising operating costs, shortages of skilled labour and limited access to critical resources. Steve Facer, the CEO of Chess Industries, shared how the cost of doing business is now significantly higher, impacting their ability to grow within the manufacturing industry. He said: 'It would be good to have the government provide some form of support in lowering interest rates, insurance and operative costs. This is what is affecting small manufacturing businesses' growth.' Another local food manufacturer owner, Henry, spoke about the cost of equipment being substantially higher and about there being pressure to keep up with technology to remain competitive. This is a costly exercise that not all small businesses can afford. Gus Medina, the managing director of Medina Engineering, which specialises in manufacturing purpose-built machinery, stated, 'There needs to be more funding for upskilling employees, such as digitally enhancing their ability to operate machinery utilising computers.' I have also recently shared BE Campbell's difficulty with labour gaps within their business and their struggle to attract talent within the meat industry, leaving them to consider a scale-down in business. This is just a handful of manufacturers' voices amongst the many that have reached out to me to seek representation and support.

I have spoken many times in this House about the importance of manufacturing in my electorate of Fowler, where it makes up about 12 per cent of the workforce. Hundreds of manufacturing businesses in South-West and Western Sydney produce essential goods across a variety of sectors, from food production and building materials to medical supplies and recycling initiatives. The only relief offered in the May budget was a $325 electricity rebate for individuals and, I think, $300 for small businesses and a tax deduction on the cost of eligible assets costing less than $20,000—and a couple of hundred dollars off energy bills, as I said. As we all know, the cost of equipment has gone up tremendously. In the supply chain, everything has gone up tremendously, and we need to really focus on what further support we can provide for many small businesses.

The feedback I have received from the manufacturing forum attendees was that this was not good enough from the government. There is also fear and uncertainty about whether this lifeline would be extended the year after. It is clear that we need to do better to support the SMEs, particularly those within manufacturing, so they can thrive and continue to grow the Australian economy.

This motion is to call for the government to not turn a blind eye on the struggling SME manufacturers and to take further action by (1) creating further funding opportunities for SMEs to upskill their workforce as technology continues to advance; (2) promoting a career to young Australians and migrant workers by continuing and expanding government investment in training initiatives, apprenticeships, English language training and foundational skills development; (3) increasing the instant write-off to $50,000 and indefinitely extending this initiative to give SMEs breathing room to operate without the pressures of heightened costs; and (4) lowering the cost of doing business by addressing the escalating costs of insurance, freight, energy and compliance, which disproportionately impact small and medium manufacturers. I have taken the time and effort to consult with my electorate, and the call for action is not unreasonable. SMEs in manufacturing need the government's support and they need it now; otherwise they will continue to be left behind.

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