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

My question is to the Prime Minister. Prime Minister, will you please update the House on how Australian small businesses can take advantage of the tax cuts in this year's budget; and what has been the response to these important measures?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Ryan for her question. I thank her for her support for the many, many thousands of small businesses in her electorate. I can inform her and the parliament that the budget is this government's latest step in our plan to build a strong and prosperous future for all Australians. I can also inform her that, tomorrow, legislation will be introduced into this House to give effect to the budget's $5.5 billion worth of small-business tax cuts. There is the 1½ per cent tax cut for incorporated small businesses; there is the five per cent tax discount for unincorporated small businesses; and, best of all, there is the $20,000 instant asset write-off for all small businesses. And, Madam Speaker, don't small businesses right around our country love the instant asset write-off, as I discovered this very morning at the Celestino cafe in Canberra. Celestino is a family-run business in Canberra that wants to upgrade its facilities, and that is exactly what it will be able to do with the instant asset write-off, thanks to this budget and this government.

Small business is the engine room of our economy. Small business provides almost 50 per cent of all the jobs in our economy. Small business is the most creative part of our economy, and every single big business in our country, everywhere, started life as a small business. That is why it is so important that small business gets a fair go. Small business people mortgage their homes to invest, to employ and to serve their community. That is why they deserve nothing but good from government, and that is what they are getting from this government, which has delivered the best budget for small business in history. What is good for small business is good for everyone. When small business flourishes, the workers small business employs flourish. When small business flourishes, big business that sells to small business flourishes as well.

I should remind the House of the response to the budget. Peter Strong, the Executive Director of COSBOA, said that 'This is a small business budget.' He says the $20,000 tax write-off is extraordinary and that:

… it will … really motivate them to go and spend and buy things, and grow their business or save their business, employ people, get cash flowing through the economy.

It's a great initiative and it's combined with a lot of other things for small business as well …

The only one who was not very happy about it was the Leader of the Opposition, who called the instant tax write-off 'a giveaway to start a fire sale at second-hand car yards and Harvey Norman'. Don't talk down a small business—pass the relevant legislation.