David Coleman (Banks, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister update the House on the response from small business to the government's budget? How will cutting taxes for small business strengthen the economy?

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

I do thank the member for Banks for his question and I can assure him and the small business people in his electorate that the Australian economy is fundamentally strong. We have 2½ per cent growth. There have been 250,000 more jobs created since September 2013. In the March quarter, export volumes were up by a remarkable five per cent. Housing starts are at near-record levels. The budget builds on all of this. Since the budget, we have seen a surge of confidence, not just in the statistics but in the testimony that so many people are giving to members of this government. I want to cite a letter I have just received from a business owner in Kingsgrove in the electorate of Banks who said:

I wanted to write to thank you for the recognition given to small business in the last budget. The measures you have taken will make a difference to us, and there is already an optimism spreading through my small business customer base.

Dr Neville Steer from Mornington has just emailed the small business minister to say:

Your budget measures supporting small business are going to be very helpful for our medical practice. We are in the process of spending about $45,000 to refresh our whole IT system as it is now over five years old. The announced measures will assist in achieving this and allow us to fit additional equipment purchases into our practice. As a small business owner, these are the types of policies that give confidence.

This is the best budget ever for small business. It is the biggest budget boost that small business has ever received. There is the 1½ per cent corporate tax cut for incorporated system businesses. There is the five per cent tax discount for unincorporated small business. Best of all, there is the $20,000 instant asset write-off for all small businesses. Because the Leader of the Opposition finally, in question time yesterday, agreed to pass this through the parliament, if you want to take advantage of the $20,000 instant asset write-off, you do not have to wait. You can go out and spend now, confident that the parliament will support this measure. Small business is the engine of our economy. It is the locomotive of job creation.

Ms Owens interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Parramatta!

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

Small business is the heart of innovation. Small businesses are the people who are having a go so that everyone can get the fair go that every Australian deserves. So that is what we are doing. We are encouraging the people who are out there having a go because we want every Australian to get a fair go.