Chris Hayes (Werriwa, Australian Labor Party) Share this | Link to this | Hansard source

A couple of weeks ago I joined with many state and federal colleagues and took part in an event organised by the Small Business Council of New South Wales, Pollies for Small Business. It is a remarkable program. On this occasion I spent a few hours at The Beer Shed at Leumeah, a small boutique brewery that operates in my electorate. A family owned and operated business run by Tim Eggert, it provides assistance to those in the Macarthur area who have an interest in making their own beer using a commercial brewing facility.

I support the Pollies for Small Business program as it puts us, as members of parliament, at the coalface and gives us the opportunity to spend a bit of time in our communities working with local businesses and getting a feel for the issues that they face. The quid pro quo for those businesses is that they have the opportunity to raise matters directly with their local members. I have participated in this program for many years now and will continue to promote its success. I believe that it helps to level the playing field, leading to an improved understanding and mutual respect between businesses and members of parliament.

Even though many of us here may have run our own business, as I had the opportunity to do, the reality is that small business is under constant pressure, facing ever-changing circumstances. That is why we should take the opportunity to understand the major issues that impact upon the business community and what they experience and find out how we can assist.

We on this side of the House recognise that small business plays a key role in providing local jobs and driving recovery during these difficult economic times, and it is for this reason that government will continue to work hard to help small business. In the short time I have available, I would like to outline some of the initiatives that the Rudd government has introduced to support and assist small business during this globally challenging period.

Firstly, we are providing direct assistance to small businesses through an expanded and enhanced small business tax break. This initiative is wonderful news for the many local small businesses—currently almost 10,000—in my electorate of Werriwa. Small businesses with a turnover of less than $2 million a year will have access to an additional 50 per cent tax deduction for eligible assets. This is great news for my electorate, with 94 per cent of local businesses falling into that category. This tax break provides small businesses with an even greater incentive to invest in new capital items such as computer hardware and business vehicles and to undertake capital improvements to existing machinery and equipment. All other businesses will be able to access the tax break at 30 per cent for eligible assets.

Next I would like to refer to the $720 million tax reduction to provide cash flow relief for small business during 2009-10. Maintaining cash flow is critical to the viability of small businesses. To help boost cash flow, the government is reducing quarterly pay-as-you-go, PAYG, instalments for small businesses during 2009-10. This $720 million in cash flow relief comes on top of the boost provided by the government’s discounted December-quarter 2008 PAYG instalment, giving a further benefit for small businesses during this difficult time.

So that small businesses have access to the advice and support they need, the government is investing $46 million to fund 90 small business advisory services delivered through business enterprise centres, chambers of commerce and other not-for-profit business organisations. These small business advisory services provide much needed assistance to small business during the global financial crisis on matters such as preparing business plans and on applications for finance and cash flow management. I am fortunate enough to have one of these centres located in my electorate.

During these difficult economic times, the Macarthur and Liverpool BEC is providing guidance and support to hundreds of small business across Campbelltown and Liverpool. They have been doing this successfully for more than 15 years. David Waudby, CEO of Macarthur and Liverpool BEC, has recently said to me that during these current economic times and a direct result of the government’s Nation Building and Jobs Plan they have seen an increase in new ventures and, equally important, the creation of new employment opportunities. (Time expired)