Bruce Billson (Dunkley, Liberal Party, Shadow Minister for Small Business, Competition Policy and Consumer Affairs) Share this | Link to this | Hansard source

My question is to the Treasurer. I remind the Treasurer that the Australian Chamber of Commerce and Industry small business pre-election survey—this one—states that the abolition of the carbon tax is a priority for small business. Why won't the government reverse the planned five per cent increase in the carbon tax due next Monday in order to give small business some relief?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

What can I say? I do welcome any question on the economy and any question on investment, particularly when it comes to Australia's small businesses, because we have got in place a fundamental piece of public policy called the instant asset write-off, which is a major benefit to millions of small businesses right around our country. Of course, ironically, it is something that is opposed by those opposite and would get the axe if they were in government—

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

Madam Speaker, I rise on a point of order. The question had nothing to do with the instant asset write-off nor was it a general question about the economic conditions facing small business. It was about scrapping the tax increase on 1 July. I would ask you to ask that—

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The Manager of Opposition Business will resume his seat. The answer is to the entirety of the question. The Treasurer has the call.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

The instant asset write-off is a major boost to cash flow to millions of Australian small businesses. I am not surprised that those opposite would not acknowledge what an important boost it is to the cash flow of small businesses, because they want to get rid of it. They are not going to tell people about it and be honest about it. Loss carry back is also very important to many small businesses. This is opposed by those opposite as well.

I have been asked about the carbon price. The carbon price is working and it is having a dramatic impact on emissions. That is a good thing for our country. We on this side of the House understand the importance of dealing with dangerous climate change, unlike those opposite. The Leader of the Opposition has called it absolute crap. He said he has been a weathervane when it comes to climate change. On this side of the House we have conviction. We have conviction about jobs and growth. We have conviction about doing something about dangerous climate change. We have conviction about doing something to increase the resources available for the education of our children. There is a very clear contrast.

So when it comes to small business and the rest of the business community there is nothing more fundamental that we can do for business than to support jobs and growth. Growth in our economy is solid: 0.6 and 2.5 through the year. Where else do you see those sorts of growth levels in developed economies around the world? Indeed, many of the developed economies are going further backwards. Where else do you see an economy which is 14 per cent larger than it was at the end of 2007? The Canadians are only up to about six per cent.

The fact is that the most fundamental thing we can do for business is to make sure we are supporting jobs and growth so we have consumers who can spend a dollar and keep the doors of those businesses open. That is what drove us when responding to the global financial crisis and the global recession—to keep the doors of small business open when global demand fell off a cliff. And guess what? We were pretty successful at that. We are successful at it now because we understand the importance of jobs and growth. You do not. The people who will suffer, if you ever get the chance to take the axe to public expenditure, will be the small businesses of our country.