Karen McNamara (Dobell, Liberal Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) notes that the Government is providing practical assistance to small business;

(2) recognises:

(a) the allocation of $8 million in the 2014-15 budget to establish the Small Business and Family Enterprise Ombudsman;

(b) that the Small Business and Family Enterprise Ombudsman will act as an advocate for small business, cut previous compliance burdens and reduce red-tape;

(c) that the Government has a sustainable strategy in place to cut $1 billion in red tape every year for small business workplaces; and

(d) that on Wednesday 19 March 2014, the Government introduced legislation and tabled documentation to repeal more than 10,000 pieces and over 50,000 pages of legislation and regulations, saving over $700 million in compliance costs across the economy; and

(3) commends the Government for providing real, practical assistance to small business, encouraging productivity in the Australian economy.

This government is providing practical help to assist small business. The coalition has always been a friend and supporter of small business. Our initiatives, including the allocation of $8 million in the 2014-15 federal budget to establish the Small Business and Family Enterprise Ombudsman, is a positive step to assisting business. The Small Business and Family Enterprise Ombudsman seeks to act as an advocate for small business to cut previous compliance burdens and reduce red tape. We have a positive, sustainable strategy in place to cut $1 billion in red tape every year for our small business workplaces.

I for one commend this government for providing real practical assistance to small business, encouraging productivity in the Australian economy. Australia now has a government that is making life for all small business operators easier, not harder. I firmly believe that small business is the engine room of our economy. It is business that creates job. Small business owners, who put their livelihood on the line to create jobs, deserve support from government. I resolutely believe in creating a stronger economy with more jobs and a stronger small business sector, especially for my electorate of Dobell.

This motion confirms the parliament's support for the measures introduced by this government, which strengthen and enhance prospects for small business owners Australia-wide. This government has provided solid evidence of supporting Australian small businesses, fortified by the allocation of $8 million to establish the Small Business and Family Enterprise Ombudsman in this year's budget. The ombudsman delivers on our commitment to create a single entry point for small businesses to obtain information about services and programs available to them.

Through the ombudsman's advocacy, we will see compliance burdens reduced and red tape cut. Many small businesses can get on with the job of attending to their customers, creating local employment opportunities and building a sustainable profession. As part of its key responsibilities, the ombudsman will also be a concierge for dispute resolution and a Commonwealth-wide advocate for small businesses and family enterprises, a contributor to the development of laws and regulations favourable to the needs and requirements of small businesses and a single point through which assistance and information regarding small business can be accessed.

We also have established the Fair Work Ombudsman small business helpline which, as of September, has received over 129,000 calls. With this helpline providing support to small business owners to assist in improving their knowledge and operation of relevant legislation, this essential service provides our small businesses the confidence to grow, invest and create jobs.

Everything this government is doing and has planned for small business is about making every day easier. No-one would argue that business regulation is essential for ensuring the rights of employers, employees and the general public are protected. But business regulation that is inefficient or unnecessary, unfortunately, imposes undue costs on business. When we held this parliament's first ever red-tape repeal day, over 10,000 pieces, and 50,000 pages, of legislation were scrapped and $700 million in compliance costs were reduced. It is worth highlighting that the broader economic benefit will be much greater than this. Such action was deemed necessary because the former Labor government, within six years, introduced more than 21,000 additional regulations. Labor's actions stifled investment and job creation, and burdened small-business operators with excessive compliance costs and requirements.

Without doubt, the most scandalous act of economic vandalism was the introduction of the carbon tax. Thankfully the carbon tax is now gone. The carbon tax was a handbrake on the Australian economy, with Australia's small-businesses bearing the brunt of the impact. We have done what we said we would do. We are providing real assistance to small business. This government remains steadfast in our commitment to reducing red tape in order to drive a stronger economy where small business can thrive.

Small business is the backbone of the Dobell economy. Collectively it is our largest employer. For the 8,939 businesses in Dobell and over 68,000 businesses Australia-wide we will deliver a strong and prosperous economy where business operators have confidence to grow, invest and create jobs. Small businesses in Dobell rely on me, as their federal representative, to ensure that I am doing all that I can to demonstrate my support to their continued and viable presence. By doing so, regions such as the Central Coast will prosper under a stronger economy where everyone can get ahead. This motion acknowledges the practical help provided by the government to small-business workplaces to enhance the productivity of the Australian economy. I commend this motion to the House.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

Is the motion seconded?

Andrew Nikolic (Bass, Liberal Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Bernie Ripoll (Oxley, Australian Labor Party, Shadow Minister Assisting the Leader for Small Business) Share this | Link to this | Hansard source

In 2013, it was Labor that established the role of, and appointed the first, Australian Small Business Commissioner as a voice for Australian small business. Mr Mark Brennan commenced as the inaugural Australian Small Business Commissioner, bringing to the role a strong track record of achievement in small business, including serving for seven years as the inaugural Victorian Small Business Commissioner.

It was under Labor's small-business policies that for the first time there was a direct voice to the Australian government through the appointment of the Australian Small Business Commissioner. The commissioner's role was as an advocate within the Australian government to represent the interests of Australian small businesses and to work in consultation with key stakeholders, including industry organisations and small business operators, state small-business commissioners and other government agencies, to hear the concerns of small-business people.

Labor supports in principle the government's intention to transition Labor's role of Small Business Commissioner to ombudsman; however, we will consider carefully any draft legislation when we see it. Small business needs an independent advocate or voice to act on its behalf, and we would hope that the government will ensure the independence continues under any proposal brought to this parliament.

I think it is timely to remind the Minister for Small Business that his discussion paper was released back in April and submissions closed in May. The minister issued a press release in August saying, 'Small businesses will shortly be invited to comment on the draft legislation.' It is now the end of October and we are still waiting to see the draft legislation. It is no secret that this minister has made many promises to small business since becoming minister. Let us see how long it takes for him to keep those promises. Meanwhile, small business is still waiting.

The first act of the Liberal Minister for Small Business and the Liberal government was to cut billions in tax measures introduced by Labor that delivered real, tangible, practical benefits to small business. For example, the tax loss carry back, which was designed to offset the disproportionate burdens faced by small business, was cut by this minister. It is generally accepted by governments around the world that some features of tax systems are biased against small business. Labor recognised this and we did something about it. That is why we introduced preferential taxation for small business, which would allow it to carry back losses incurred in earlier years of their operation at a time when cash flow is critical to their business.

The instant asset write-off was another tax assistance measure for small business that was expanded under Labor but was cut by the Liberals—cut by the Liberal Minister for Small Business. I say to the minister, who claims to be the best friend of small business, that there is some difference between what he says and what he does. Taking away help is not helping small business, and small business knows this because it is part of its day-to-day operation. The repeal day is another example of hype and bluster from this government and the small-business minister. If this government was serious about getting rid of red tape then why did it propose that job seekers, for example, were going to have to apply for 40 job applications per month, only to later abandon the bad policy when told by Labor and the business sector that it saddled businesses with more red tape? This Liberal government just does not understand small business. It is all talk, all ideology, but no substance. I did not hear the Minister for Small Business stand up for small business or tell the Prime Minister that this was a bad idea. But, luckily, someone did listen.

The facts are that Labor removed more than 16,000 regulations when we were in government. But the difference between Labor and the Liberals is we did not make a song and dance about it, because it is part of your job—it is part of everyday work—and it should not be a stunt, which is what we are now getting from the Liberals. They want to make a big deal about it but it is just a stunt. The Liberals have made a huge deal of this. It is akin to saying: 'Let's have a "turn up to work day". Aren't we great?—we've turned up to work today.' No, that is your job. Do it; do not keep going on about it.

The Liberals' repeal day is a joke and a bad policy. Some of the regulations that were removed under the repeal day as part of the government's work included removing consumer protections in FoFA laws and giving a fresh licence for contractors to cut the wages of cleaners. That is not good. It is not good for small business. It is not good for workers either. You cannot, in the guise of a repeal day to do anything and everything, at the same time remove good regulations that help small business or help workers. Surely removing regulations that are good cannot be good for the economy as well.

This is a government that is driven by ideology over substance and that takes away practical support for small business. If the government were serious about helping small business it would reverse some of the bad decisions it has already made and would reintroduce some of Labor's very good policies. (Time expired)

Andrew Nikolic (Bass, Liberal Party) Share this | Link to this | Hansard source

It gives me much pleasure to second this important motion by the member for Dobell. This is particularly so because her electorate, in the Central Coast region of New South Wales, and mine, in north-east Tasmania, are both strong microcosms of wider small business activity throughout Australia. In both of our seats and across the nation, the reality is that small business and the employment that flows from it hold, in large part, the key to the economic fortunes and futures of those we represent. As the member for Dobell said, it is, quite simply, the engine room of the Australian economy. This reality is made even stronger and perhaps more poignant by the practical linking of family and small business through the establishment of the Small Business and Family Enterprise Ombudsman. The ombudsman will be a national advocate for small business and will assist in the development of small-business-friendly laws and regulations.

It is clear that for too long small business has been relatively unacknowledged. It is the solid, tireless worker of the Australian economy, the quiet achiever always there but with a relatively low public profile. As such, it has been too easy for some in this parliament to take it for granted and to regulate it in ways which hurt or stifle its growth and smooth functioning, as through some of those 21,000 additional regulations that appeared during the Rudd and Gillard governments from 2008 to 2013. These regulations affect not only small business but most other Australians, either directly as small business employers or employees or indirectly as consumers or taxpayers. That is why we are so strongly committed to reducing the red-tape burden facing small business.

As the Tasmanian representative on the coalition's deregulation committee, I was very pleased to hear the member for Kooyong last week announce that we will remove nearly 1,000 pieces and over 7,200 pages of legislation and regulation as part of our spring repeal day. That follows the more than 10,000 pieces and 50,000 pages of legislation and regulation we removed from the statute books during our autumn repeal day last March. In just over a year, the coalition government has announced more than $2.1 billion in red- and green-tape savings for the business and not-for-profit sectors. This more than doubles our commitment to remove $1 billion in red and green tape from our economy each and every year. In doing so, we are saving small business owners both time and money.

We are reducing their tax compliance burden with administrative changes to GST and pay-as-you-go reporting. As the Minister for Small Business pointed out last Wednesday, this means that businesses with no GST payable will no longer be required to lodge a business activity statement, which would otherwise only record pay-as-you-go instalments. That saves more than $67 million each year in compliance costs. We want to free up that burden which has long afflicted small business and also to support the creation of a healthy and confident economy and general business sentiment. This is vitally important. In unison, both are conducive to encouraging and fostering the small business spark of sensible and prudent risk-taking, a spark that is all too easily extinguished by ham-fisted government intervention.

Finally, what we are discussing now has a wider and even darker strategic context. After 2008 Australia was indeed fortunate to escape the very worst of the GFC. At the time the current Labor government, perhaps understandably, floundered in their initial response to it but were later much quicker to opportunistically and shamelessly seize credit for saving Australia and to parade themselves as some sort of economic exemplar on the world stage.

More objective pundits were gracious enough to acknowledge that the true foundations of this survival stemmed not from increasing financial handouts to all and sundry but from the creation of a sound economy, the eradication of national debt and the building of a national surplus, which was then available to meet and ameliorate the challenge to Australia and for all Australians. It was a case of conservative foundation building by the Howard government towards a national and enduring strategic financial objective: a truly prosperous Australia. We, the coalition, remain absolutely committed to this goal, which includes this motion and supporting legislation as important milestones on this journey. It therefore gives me much pleasure to support and to second the member for Dobell's motion and to note in closing that its impacts will in no way be confined simply to small business but rather will flow naturally and constructively to the benefit of all Australians.

Gai Brodtmann (Canberra, Australian Labor Party, Shadow Parliamentary Secretary for Defence) Share this | Link to this | Hansard source

I am pleased to have the opportunity to speak on this motion because there is no underestimating that micro and small businesses are the engine room of our economy, and they deserve support and recognition from government and from parliament. We need to ensure that we develop the policy environment for them to thrive in. Micro and small businesses employ more than five million Australians, and they contribute almost 50 per cent of private sector employment. Labor is committed to engaging with small businesses and small business groups, and micro businesses and microbusiness groups, right across the country and taking feedback on potential new small business policy ideas.

Members will be aware of my passion for small and micro business, because before entering parliament I ran my own small business for 10 years. Since entering parliament I have established the Parliamentary Friends for Small Business and microbusiness with the member for Herbert—and I just want to do a plug for tomorrow night's Shop Small event. I have also established the Labor for small business group here in Canberra. Also since entering parliament I have spent a great deal of time talking to the small business operators in my electorate of Canberra and advocating for their needs and interests.

Since being elected, I have conducted what I call business walk-arounds, where I go out to the community—usually industrial enclaves in my community in Hume, in Fyshwick, in Phillip, in Woden, in Weston Creek—and I talk to the small and micro businesses about the issues that they are concerned about. Quite often they can be ACT government issues. They can be federal issues. One of the many challenges that small businesses have here is the notion of harmonisation, because Queanbeyan is not very far from the border here. Usually businesses do cross-border activity, so the issue of harmonisation is usually front and centre for a number of businesses in my community.

But the most frequently occurring concern I hear is the concern about Public Service jobs cuts and how the uncertainty this government's budget has placed on Canberra is leading to an economic downturn. According to the Canberra Business Council chief executive, Chris Faulks:

The big issue for the Canberra economy is the ongoing fragility of business and consumer confidence, which impacts on consumer spending and business investment.

While I welcome the allocation of $8 million in the budget to establish the Small Business and Family Enterprise Ombudsman, which is essentially a transition of a concept we introduced, I would like to see the government take the concerns of micro and small businesses in my electorate seriously. Those opposite say they stand for micro and small businesses, but how does taking the axe to Public Service jobs help small businesses in Canberra? Many Canberra businesses are struggling, and that is a direct result of the government's cuts to the Public Service.

The budget outlined the biggest staff cuts to the public sector since the 1990s. Let me remind you of what happened to Canberra in 1996. The Howard government slashed 15,000 jobs here in Canberra. That meant 15,000 people no longer spending on Canberra's micro and small businesses, buying their products and using their services. Non-business bankruptcies jumped sharply in 1995-96 by 38 per cent and again in 1996-97 by 17 per cent, while business bankruptcies jumped in 1996-97 by 38 per cent.

I was affected too because I lost my job, so I know firsthand the devastation of mass job losses. I recall in 1996 going round to local shopping centres, and they resembled ghost towns. The newsagent had closed. The hairdresser had closed. The video store had closed. The milk bar had closed. They closed because incomes and wage earners simply disappeared. They left town. We had a mass exodus from Canberra as a result of the 15,000 job cuts here in Canberra in 1996.

Labor is serious about small business. It was us that introduced the instant asset write-off threshold. We also introduced the loss carry-back scheme. I know from speaking to micro and small businesses in my community that that was greatly appreciated. It was Labor that commissioned the first national Small Business Commissioner in this country because we knew that micro and small business needed a direct national voice to government.

I know that Canberra businesses are suffering as a result of the mass job cuts here. I know that they are very concerned about what is to come in the future, particularly with MYEFO. I ask those opposite to think about Canberra small businesses when they are introducing these cuts. (Time expired)

Nola Marino (Forrest, Liberal Party) Share this | Link to this | Hansard source

I commend the member for Dobell for this private member's motion. She is entirely correct that small business is the engine room of the Australian economy and the heart and soul of employment. It is very easy to say that, but as a small business owner and operator I know it very, very personally. It was on the day that I married my husband that we bought our first dairy and beef property and business. Debt and hard work were synonymous with what we had to do as small business people. I see this right around Australia wherever I go—the amount of commitment that small business people make to be able to engage. They often follow a passion. They follow a dream sometimes, or they are just really commercially focused. There are over two million actively trading businesses in Australia, and almost 96 per cent are small businesses.

I was interested in the comments of the member opposite about decisions made by government. I remember back when the mining tax was announced and, three to four months later, the very first iteration. I remember, when I was out and about in my electorate, the range of businesses from services to suppliers to the mining sector, even right down to the retail sector, who were all directly impacted. Two of those businesses disappeared within six months of that announcement—right down to a fencing contractor, who said the mid-cap miners had put their hands back in their pockets. He said, 'I've got eight people employed, and I've only got two weeks work left.' So the decisions made at this level have a real impact on small business right across Australia and are felt very, very directly.

Of course, we know that small businesses with fewer than 20 employees account for 46 per cent of all Australia's workers in the private sector. Small business is a major employer, offering opportunity to young people in part-time or full-time work. It is often the mums and dads in small business who do this and give young people a go. That means that small business employs 38.5 per cent of all Australian workers. It is why small business is so important to us as a government, and it should be important to everybody in this House—not to just say it. If you live it, if you invest and if you commit, you know that small business is really tough. It involves all of your time, all of your energy, all of your passion—and that does not even guarantee that you are going to stay in business. The commercial focus is required, but often decisions are made that can affect you quite directly.

We have an economic strategy to remove the burdens from business, to make not only those small businesses but the whole nation, because of that, more competitive and to drive more jobs and higher living standards for all Australians, as the member for Dobell has said, especially those in small businesses. The protections that they will actually achieve will be the same as for consumers when it comes to unfair contracts imposed by big businesses: $1.4 million to extend unfair contract relief from consumers to small businesses. Currently only consumers are protected from unfair terms in standard-form contracts. But small businesses have told us that they have also been subject to unfair terms in standard-form contracts, often presented as take it or leave it. Small businesses often have insufficient ability to negotiate changes to contracts.

We also need to increase certainty, confidence and productivity, and that is what is underpinning the $8 million to establish the Small Business and Family Enterprise Ombudsman. This is part of our election commitment to establish a one-stop shop for small business. It is really important. If you are in small business, you are so busy working in your business that it is quite often difficult to work your way through all of the issues—all of the compliance—because it is tough to work on your business while you are full-on in your business. It is the small business people who are up at night doing the accounts and keeping up with all of the latest trends and issues—but also keeping up with their compliance. I think this is a very strong issue that we are offering small businesses: the reduction in the red tape burden.

As we heard, 21,000 new or changed regulations were having an impact. The number of businesses who literally said: 'Look. I am drowning under the weight of this. It is taking me away from my customers and from what I am actually here to do as a small business.' I think this is going to make a major difference to small business. We are committed to removing that burden. I commend the member for Dobell for this particular private member's motion.

Ed Husic (Chifley, Australian Labor Party, Shadow Parliamentary Secretary to the Shadow Treasurer) Share this | Link to this | Hansard source

Good on you, member for Dobell! Good on you for bringing this resolution! Not only do I commend this resolution, because it gives effect to what Labor did, but I am going to make a recommendation for the very first order of business for this small business ombudsman: to investigate the deceptive and misleading conduct of the Abbott government.

You say all the time you are in favour of small business, but reality never matches the words. It is like watching an Oprah show. The coalition are ringing their handkerchiefs telling us how much they love small business. They are the best people. We are their best friends. They do fantastic things for the economy, and we are going to be there to help them. And what is the first thing they do when they get into office? They stop a whole range of measures—billions taken away from small business: instant asset tax write-off; accelerated deduction for motor vehicles, which gave small businesses a boost in their cash flow; and also the further cash flow measure we brought in that allows for carry back of tax losses. All these things are affected by those opposite—the ones who are telling us in their words how much they are a friend of small business, but in their deeds are hurting every small business in the country.

And how many did they rip off? In taking the axe to assistance for small business from the abolition of the asset write-off, that is $3 billion. Billions wiped off. But that is not the worst. That is not the worst of what they did. The worst is that they made it retrospective. They made it retrospective. If these people ever confronted us doing that when we were in government, we would have an uproar. They have done something that retrospectively takes and disables the ability of small business to claim those measures. They have not only ripped it out of the future, they have ripped it out now, when businesses have counted on that benefit. Gone—by them. Why does your small business ombudsman not investigate that deceptive and misleading conduct? There are a whole stack of things you are doing now that you never said you were going to do before the election. You never had the guts to tell these people—the people to whom you say, 'We are your best friend'—that you are going to rip these billions off them retrospectively.

I have 9,000 small businesses in my electorate and I am proud to represent them. They are all having a crack. A lot of them hardly employ people at all. There they are working the long hours and we are here telling them what they will have the ability to write off—for example, a small cafe's refrigerator display that busts, as I have seen and I have heard from businesses in my area. Instead of them having to rely on their premiums or taking a hit on their cash flow, we were able to help them. We provided them with that assistance; you took it away from them. All you give us are your Oprah moments, the moments when you put hands on hearts and tell us you are such great friends of small business—but you are not there backing them up at all.

Then you talk about the mining tax. We had the member for Forrest in here before talking about all the small businesses affected. Tell me: what happens, when you literally chase General Motors out of the country? The auto components industry, made up of all these small businesses, is gone, wiped out—50,000 employees, all these small businesses. I have never, ever heard a Liberal or National party member come in here and talk about what impact that decision had on small businesses—all gone, all affected by your decisions. In the other instance, for example, in the tech sector, you went around the country saying for ages that you would fix the employee share ownership program. We started the process of pushing the review to Treasury. You then went around the country claiming that you would fix it. You have been in office for more than a year, making all these suggestions about how you would fix it, and you have finally got to it now?

What about crowdfunding? Again, we started the process—

Matt Williams (Hindmarsh, Liberal Party) Share this | Link to this | Hansard source

You stuffed it up years ago.

Ed Husic (Chifley, Australian Labor Party, Shadow Parliamentary Secretary to the Shadow Treasurer) Share this | Link to this | Hansard source

We stuffed up crowdfunding? We stuffed up something that just came in? That is pretty impressive! Thanks for that, Member for Hindmarsh! You go back to sleep, and I will go back to telling the facts that people deserve in this debate. In the regulatory framework for crowdfunding, people want to get access to capital to help their start-ups. Again, in the report handed up in May, the Minister for Small Business said he is a big fan of it—and what do we see? Nothing. Nothing but delay. Nothing but words. Whenever it comes to deeds, there is a failure to actually follow through. This is the legacy of those opposite. They tell us hand-on-heart that they are in favour of small business, but they never, ever deliver.

Matt Williams (Hindmarsh, Liberal Party) Share this | Link to this | Hansard source

We do have a couple of things in common, Member for Chifley, including the good Arnott's workers in the Arnott's factories. But, in terms of the Trade Practices Act, I think he got a bit carried away on 'misleading and deceptive conduct'. I would rather hear him talk about the utility bill increases for his 9,000 small businesses, the red tape and all those things that really matter. He tended to gloss over that, if he even mentioned it.

We are doing what small businesses want; we are reducing taxes for small businesses. Company tax is going down, the compliance burden is being reduced and, importantly, the carbon tax is gone. If there was one thing that small businesses always mentioned when we talked to them in the electorate, it was the higher utility bills, the higher electricity prices. We are helping them on that important front.

But our agenda for small business is far broader than that. As we have heard from the member for Dobell and other speakers on the coalition side, it focuses on the effectiveness of government engagement with small business, including the ombudsman, but also on encouraging start-ups. Again, this is where the member for Chifley was a bit misleading, making out that Labor were all for start-ups and entrepreneurialism when they were the ones that actually changed the employee share ownership scheme. We are the ones that are putting it back on the agenda. We are encouraging entrepreneurial behaviour because we need more entrepreneurs and more successful businessmen creating growth, creating jobs and creating wealth for our economy so that we can fund the necessary services like health, education and other social services going forward.

For the Small Business and Family Enterprise Ombudsman, as we have heard, there is $8 million over four years, which is a significant commitment to this advocate for small businesses and family enterprises—those family businesses that are so important to our society and to our economy. My wife runs an allied health practice with a number of others, and we know from speaking to other hardworking families that run their own businesses that they put their households on the line week in, week out to help their own family business and to help other employees associated with the companies. This ombudsman will contribute to laws and regulations that are friendly to small businesses and will help them—a concierge, if you like, for dispute resolution.

We have also talked about a number of other things, like small business access to contracts. So often, small businesses say it is hard to get access to government contracts. We are making it easier. That is why we are providing almost $3 million for small businesses to do business with government. They want access. They want the opportunity. They want a better playing field.

Whether it be export market development grants worth $15 million over four years, we need more exporters. We need people to look internationally, to go beyond our borders, to go into Asia, where there is the growing middle class, and also other areas around the world to do more with exporting the fine goods and services we produce in Australia.

Tourism is another good or service where there are a growing number of Chinese in particular who are coming out and looking for the great products that Australia has to offer. There is $43 million over four years for the tourism infrastructure grants program because these are some of the growth areas: tourism, food and wine. There are many great wines from my own state of South Australia as well as from others. There are not too many in Queensland, but you have great tourism there. I know the member for Ryan is a passionate advocate for tourism and, importantly, has a very significant background in tourism.

It was actually pleasing to hear the member for Canberra speak about her background in small business, because we do not often hear that from the opposition's side, whereas on our side small business runs through our blood and a better business environment is part of our DNA.

We have talked about red tape and compliance a bit and will hear more about that in the House this week. We know we have a lot of work to do, but we are making significant inroads. There are now over $2.1 billion in red tape reduction—a great achievement, some real runs on the board in this significant area to make it easier for small businesses to reduce their compliance costs, reduce the time they are filling out form and get on with doing what they do best: serving their customers those fine goods and services.

We have a range of endorsements from third parties, whether it be Gail Kelly of Westpac, the Brotherhood of St Laurence or Universities Australia. They all appreciate that this red tape reduction is so important for their members and a better functioning economy.

Clare O'Neil (Hotham, Australian Labor Party) Share this | Link to this | Hansard source

I was very keen to participate in the debate today because I was hoping that it might actually shed some light on this much-announced policy of the Small Business and Family Enterprise Ombudsman. The reason I hoped to be enlightened was that, looking into this matter and reading up on it as I have done, it looked very suspiciously like the Australian Small Business Commissioner with a new name. I am somewhat disappointed to find through the debate today that there is actually not much more to it than that. There is some minor broadening of responsibilities beyond what the commissioner had. These will be positive moves, I have no doubt about that, but it is not exactly the coalition setting the world on fire. Fundamentally, what we are doing today is spending an hour of the House's time commending the coalition on changing the name from commissioner to ombudsman. If there is any symbol of the approach the coalition takes to small business, it is the idea of slogans without much substance. It is all talk and no real action.

The debate today does give me some opportunity to talk about an alternative approach, and that is the one that Labor took while we were in government. I think it is fair to say that when we talk about slogans or substance we fall very much on the side of substance and are not so concerned with all the rhetoric in the debate from the other side of the House. We are concerned about making real changes that will really impact on people who run small businesses in Australia.

I note at this point that we have had on all sides effusive statements of how important small businesses are to Australia, and there is no way that we can really overstate that. There are two million small businesses around the country. More than five million Australians are employed in these organisations. When we look at how much our economy has changed in the last generation or so in Australia, this enormous growth in the number of small businesses is such a good example It is one of the pillars of the changed economy. I say that because, when we look at two million small businesses in Australia, what I see is evidence of inventiveness, of creativity, of ordinary Australians who have a great idea and say, 'We're going to take a risk on this.' That is exactly what we want the economy in Australia to look like. That is exactly what will take us forward into this next century.

An honourable member: Hear, Hear!

I am getting endorsements from the other side of the House and I am pleased about that, but I have to say that, so often, when the government talks about business what they are really talking about are the oligopolies that dominate so much of big business in Australia. It is actually Labor people who genuinely stand beside these ordinary working people who are taking capital into their ownership, having a great idea, banking on themselves, and going out there and starting small businesses. As evidence of this, you need look no further than the series of really significant reforms that was undertaken by the previous government.

Labor in government were able to give real priority to small business. We know that, for the first time since 2001, the small business minister was a cabinet minister. When we talked to people who work in small businesses, especially those peak bodies that are really close to the operations of government, we could see how much difference that made—having a small business minister at the table, helping to make decisions. We created the position of Small Business Commissioner, the name change of which takes up the attention of the House today. We included the council of Australian businesses in COAG discussions. We appointed a deputy chair to the ACCC who has significant and extensive experience in small business. Those things were about giving small business a seat at the table and a voice in the central discussions of government.

There were also critical changes to the tax system which were such an important boost to small business, especially during the period of the global financial crisis. I think the member for Chifley talked about $3 billion in assistance that instant asset write-offs gave to small businesses, just by allowing businesses to write off assets that were worth up to $6½ thousand. We introduced a loss carry-back so that, if in one year a small business made a loss, they were able to counter that with a profit from the year before and get a tax refund from that. These were really significant financial reforms.

The third thing were the practical measures introduced under Labor. For the first time, all government agencies were required to settle bills with small businesses within 90 days—a practical thing that only people who have that experience and that sort of commitment to small business would think of.

Small businesses in Australia are and incredibly important part of our economy, but reform must be real and it must be genuine. I commend the previous government for the work that it did, and we will continue to fight for small businesses around the country.

Jane Prentice (Ryan, Liberal Party) Share this | Link to this | Hansard source

I rise to speak in support of this motion and I commend the member for Dobell for bringing to the House's attention the importance of small business. I also join with my colleagues the member for Hindmarsh, the member for Forrest and the member for Bass; many of us have a background in small business, so the coalition genuinely understand the contribution that small businesses make to our economy. They are the driver of our economy. They are the engine room, as even the opposition acknowledged. These people are risk takers, innovators and, most significantly, employers of 43 per cent of the Australian workforce. We should try our best to reward their dedicated work by lowering their compliance load and giving them more time to spend creating wealth for themselves, their employees and, ultimately, Australia.

Already, with just two repeal days, the coalition have saved Australian business $2.1 billion, more than double our original target in dollar savings. The spring and autumn repeal days have seen 11,000 pieces of obsolete legislation struck from the books. The time saved just by having to no longer read those outdated rules and regulations—and indeed many are incredibly irrelevant—is extraordinary. Many of the businesses I speak to complain to me that they do not even know what they do not know, there are so many regulations tying them up in red tape.

As well as these repeal days, our government is looking at other ways to relieve the burden of compliance for small business relating to existing laws. For example, businesses that have no GST payable will no longer be required to lodge a business activity statement. This will save $67 million a year in compliance. Just to get a handle on that, there are 32,000 small businesses that do not pay GST. So there is immediately a positive impact on 32,000 businesses, because they do not have to lodge a BAS. Tax will still be recorded under the pay-as-you-go system but, as this already has to be done, there is no sense in doing it twice for no good reason. If you sign up to the myGov site, you can enter your information once; and, when you have to fill in duplicate forms, the information is automatically fed into it. It saves hours and hours for those mum-and-dad business operators who go home tired at the end of the day and then have to turn around and fill in more forms for government.

Our government has made amendments to the Export Finance and Insurance Corporation to make it easier for small and medium-sized businesses to capitalise on overseas opportunities. Giving our small and medium businesses access to overseas markets is vital for Australia to compete on a regional and global scale. As franchising offers an opportunity to people to enter into business with certain risk minimisation, this government is recognising the importance of this sector by reforming the outdated Franchising Code of Conduct. We are streamlining the code and making the obligations of both franchisor and franchisee easier to understand and more business-friendly. A new Small Business and Family Enterprise Ombudsman is being established to assist in the development of small business-friendly laws and regulations.

Why is the government doing these things? It is because the coalition values and understands business. We understand the person working the longest hours is a small business owner. We understand the person who gets paid last in business is a small business owner. We understand that the person who puts their house on the line to support their business is the owner of that business. Unlike those opposite, who see business as the enemy that must be fought at all costs, the coalition sees business as a beacon of hope.

Business can lift people out of poverty. It creates a sense of achievement and accomplishment. It gives you a sense of pride in doing a job that is worth doing, and you carry others with you, whether it is your family or your employees. Small business lifts this nation to places it might not otherwise achieve. That is why I support the measures to cut red tape for small businesses. Indeed, as a small business operator for 20 years, I know just how that compliance and regulation strangled the time I had to put into the business. Small businesses are the builders of our nation and as such we, as a responsible government, must provide them with a solid foundation on which to build.

This government understands the needs of small businesses in a way those opposite will never do. Business is not a burden on Australia, as those opposite would have you believe, but the reason our country does not have the economic woes of so many others. The coalition government will continue to support small business in the best ways it can, by lessening compliance to free up time and money. I support the motion by the member for Dobell. I also look forward to state and local governments following the leadership of the federal government in lessening the burden for small business and reducing red tape.

Lisa Chesters (Bendigo, Australian Labor Party) Share this | Link to this | Hansard source

There is a pattern of uncertainty for our small businesses that has been created by this government. Today's motion perpetuates more of the great myths of this government, particularly when one of the last comments in the motion states that they are the government delivering real and practical assistance. I go out and talk to local businesses in my area. I am the daughter of small business owners. I grew up spending a number of weekends and Christmas holidays working for small businesses.

The challenge for small businesses has not really changed that much. Where this government is hurting small businesses in my electorate is around issues like the NBN and being able to connect properly to not only the local market but also the global market. This is one of the practical problems in my electorate. What have we seen since this government got elected? They tore up the NBN plan for my electorate. It is completely halted. There is no plan right now to roll out fast speed broadband to the Bendigo electorate. That means for small businesses in Maldon, Heathcote and Kyneton—everywhere that is on the map—they have been taken off and they have no idea when they are going to connect. These communities are also struggling under the current infrastructure because of the lack of ADSL ports available. It is a practical problem which this government has no solution for.

Another problem that small businesses have in my electorate is around Australia Post. Again, we have seen this government scale back support for Australia Post. There is a big finance area in my electorate and a number of solicitors. They are saying it is taking a week for vital paperwork and forms to get from Bendigo to Melbourne because of cutbacks in Australia Post. Again, that is another practical problem that this government is not addressing.

We talk about government procurement. Bendigo is home to the Bushmaster. The Bushmaster is built at Thales in Bendigo. At the moment, over 120 small businesses are part of the supply chain. We are not sure whether Bendigo Thales will get the opportunity to build the Hawkei. It is another defence manufacturing contract. We do not know whether this government will do the right thing not only by those workers but also by the small businesses that could benefit from this work by ensuring that they get that contract.

There is no point coming in here and talking about how great you are in opening up and allowing small businesses to compete for contracts if there are no contracts for them to compete for. Time and time again, this government is making decisions based upon price and sending defence contracts overseas. This is another failure of this government to do something practical to help small businesses.

Another example of one of these contracts just recently made that is going to hurt small businesses in my electorate is ADA, Australian Defence Apparel. Part of the most recent contract that they won was all manufactured overseas. So it is great that ADA gets to be the importer—not the producer, not the builder and not the manufacturer but the importer!

When it comes to the RET, this government's indecision and its want and push to water down the RET are hurting small businesses in my electorate—not just the small manufacturers that we have but the installers. People are saying that, until this government comes clean and actually declares its intention around the RET, business will continue to stall.

Another area that other speakers have mentioned where this government has backed away from real and practical assistance to business is repealing the $5 billion worth of tax assistance allowing cash flow for small businesses. Cash flow is critical to small business. I remember that from when I used to work in my parents' small business. It is all about cash flow. Providing assistance which supports cash flow is the reform that this government has repealed. It has repealed the instant tax write-off, which helped cash flow. It has repealed the carry-back tax loss write-off. These are practical measures that this government has repealed. This government keeps talking about being the best friend of small business, but we have failed to see any real reform to suggest that. Instead, we have just seen further attacks in other areas that help small business.

Debate adjourned.