Brett Raguse (Forde, Australian Labor Party) Share this | Link to this | Hansard source

While I understand the concerns of the member for Mayo, a lot of what small business needs in this country is encouragement. I want to talk about the encouragement which the government is putting forward through the stimulus package. The Rudd government is committed to supporting Australia’s small businesses through the global recession. The government recognises that small businesses are often the first to feel the effects of an economic downturn. In my electorate of Forde, the small business community appreciates the federal government’s support in this time of economic downturn.

Small business will benefit from the government’s $42 billion Nation Building and Jobs Plan introduced to support jobs and to invest in Australia’s long-term economic growth, and a $2.7 billion small business and general business tax break providing small businesses with a turnover of $2 million or less a year. Small business will benefit from a 30 per cent investment allowance in the form of an additional tax deduction equal to 10 per cent of the cost of an eligible asset. This is a great incentive for small business to continue investing in their local businesses. A 20 per cent discount on the pay-as-you-go tax instalment, payable by 3 March 2009, will provide an immediate boost to cash flow. There is a share in the $12.2 billion stimulus package for low- and middle-income households and individuals. The government will make a direct investment in schools, housing, energy efficient homes, roads and other local infrastructure. There is a $4 billion Australian Business Investment Partnership to support the commercial property sector and the thousands of small businesses, independent contractors and tradespeople who service it. And there is a $46 million investment in small business advisory services.

This list of measures will ensure that small business is well supported into the future and, with the Nation Building and Jobs Plan, will help to support and bolster the economy in the short term. The groundwork in laying these foundations has been set in place for the Australian economy to grow stronger for when the nation emerges from the global recession. In fact, the Hon. Craig Emerson, Minister for Small Business, Independent Contractors and the Service Economy, on 6 March this year, convened a roundtable with small business organisations and bank representatives to discuss small business access to credit during the global financial crisis. The Minister for Small Business, Independent Contractors and the Service Economy has established a small business banking complaints clearing house in the minister’s office to receive complaints about access to and the cost of bank finance to small business operators.

I would like to thank the minister for his support of small business in my community and encourage any small business operator who is having difficulty accessing credit to provide their details to the minister’s office. On 6 March 2009, the small business roundtable undertook to seek to maintain the level of funds available to the small business sector and to continue to make loans to small businesses. It also undertook to pass on to small business customers, to the maximum extent possible while maintaining prudential standards, reductions in the cost of funds and, on a case by case basis with respect to customer’s cash flows and their agreement, consider loan-restructuring options so that business can continue to trade. Those are the highlights of what we as a government have put forward in our support for small business.

In this chamber just last week I spoke about the Gold Coast region, my seat being in the Gold Coast hinterland. We have a lot of things happening on the Gold Coast which are problematic in terms of the downturn in the construction industry. As I said last week in this chamber, there is a view that the Gold Coast are doing okay. I am here today to say that they are not doing so well. They certainly would like me to pass on to this House the concerns and note their push to put in $100 million of their own to get things going again on the Gold Coast.

In the nature of the Gold Coast—the commercial interests and certainly the tourism market—in a downturn, particularly a global downturn, the tourism industry usually suffers very much. The Gold Coast also has a very large manufacturing base in the marine sector in the building of boats and other marine services. It is really feeling the pain right now. The government’s measures which I have just outlined will help and encourage small business to continue. I must congratulate the Gold Coast City Council on putting forward their $100 million stimulus package in a number of areas, similar to what the federal government has done on a larger scale. Communities and larger local government agencies on the Gold Coast are coming together, working within their regions, to understand the Rudd government stimulus package and how it can be of benefit to them. This is an endorsement of what the Rudd government has been able to do. I congratulate the Gold Coast for their efforts and offer every support we can give as a government.