Fiona Scott (Lindsay, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Small Business and Assistant Treasurer. Will the minister explain to the House how the government will protect small businesses from unfair contract terms?

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Small Business) Share this | Link to this | Hansard source

I thank the member for Lindsay. She understands the challenges and rewards that come from working in small business, having worked alongside her parents in their small business. I am pleased to inform the House that the government is delivering on its election commitment to extend the protections for consumers that exist in relation to unfair contracts in standard form contracts to small businesses. This is indeed a very significant measure, and I would like to acknowledge the great work of the former Minister for Small Business, Bruce Billson. I would also like to acknowledge the very significant discussions that have taken place—

Mr Husic interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Chifley.

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Small Business) Share this | Link to this | Hansard source

with the crossbench senators, who have indeed been very informative as to the importance of the extension of the thresholds.

Ms Plibersek interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

I remind the member for Sydney that she has been warned.

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Small Business) Share this | Link to this | Hansard source

The protections will apply to standard form contracts where one party employs fewer than 20 people and where the up-front contract price is less than $300,000 or $1 million in the case of contracts that extend beyond a 12-month period. Unfair contract terms could be those terms that unfairly restrict a small business's right to terminate the contract or indeed those that allow one party to change the terms of that contract without the other party's consent. This will be very, very significant for the majority of small businesses that will fall within these thresholds. We are giving the ACCC significant dollars—

Mr Husic interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Chifley is now warned!

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Small Business) Share this | Link to this | Hansard source

in order to help small businesses to transition—$1.4 million in the last budget—and it will be really appreciated by the more than two million small businesses in Australia.

The CEO of the Council of Small Business, Peter Strong, in a press release on this announcement—a press release entitled 'Fairness, transparency, productivity and retail diversity achieved all in one decision'—said:

This decision by the government will be received with joy by many, many small businesses …

I think that says it all. The government is supporting small business. We have been supporting small business from day one. In the last budget we were able to deliver a historic $5.5 billion package that supports small business and jobs. We have cut the tax rate for small business by more than 1.5 per cent. We have also been able to allow small business to invest in their businesses with the instant asset write-off for those assets of less than $20,000. We are doing it this year; we are doing it next year. We back small business and we hope those opposite do too. (Time expired)