Scott Buchholz (Wright, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Small Business. Could the minister update the House on our Ten Year Enterprise Tax Plan and the effects it will have on small business in Australia and, in particular, the effects on small business in my electorate of Wright?

Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Link to this | Hansard source

I thank the honourable member for Wright for his question. He is a good member. He understands the importance of small business because he ran one and continues to do so—CQX Transport with 10 trucks. It is a good small business in the electorate of Wright. The member understands, as do all members on this side of the House, the importance of small businesses and what they mean to our economy.

There are more than 13,000 small businesses in the electorate of Wright. It is great to hear, in Wright, of regional businesses opening, expanding and, perhaps most importantly, growing. Our Ten Year Enterprise Tax Plan will assist them to do just that. It will relieve compliance on Tom Plunkett of Paint Place in Beaudesert, so he can get on with what he does best—supporting local tradespeople and offering a high quality service to customers. For the local Beaudesert grocer, Antonio Bufalino of The Big Pumpkin fruit and vegetables, our plan will free up capital for him to reinvest and develop his business.

Just an hour ago I met with the Council of Small Business of Australia chairman, Paul Nielsen He spoke of how critical our enterprise tax plan is to enable small business to drive innovation and growth. They were his words. The Coalition understands just how important this plan is to create the right conditions for small business to grow and prosper.

Opposition Members:

Opposition members interjecting—

Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Link to this | Hansard source

You might think it is a joke, but this is important. That is why I was so pleased that this legislation was introduced as a priority by the Treasurer in the first week of the 45th parliament. Over the past 15 years Australia has gone from having the ninth lowest corporate tax rate amongst advanced countries to now having the sixth highest out of 35 OECD countries. Australia must remain competitive as an attractive destination to invest in. That is why we have delivered a tax plan targeted to provide opportunities, to boost jobs and growth. Our Ten Year Enterprise Tax Plan will support up to 3.2 million small businesses, who employ more than 5½ million Australians. As of this financial year, companies with turnovers of less than $10 million will have a tax rate of 27.5 per cent, the lowest it has been since 1967. That is around 870,000 additional businesses which will benefit and have access to a range of small business tax concessions.

Just yesterday the member for Kingsford Smith stated that he and his Labor colleagues are opposed to changing the threshold turnover for small businesses to beyond $2 million, saying, 'There is no economic benefit and it will do social detriment.'

Why do you hate small business?

I say this to the member for McMahon, the shadow Treasurer—and this underlines one of the golden rules of Australian politics—

Ms Plibersek interjecting—

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

I am trying to help the member for Sydney stay in the chamber.

Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Link to this | Hansard source

when the Labor Party gets its hands on important pieces of economic policy, sensible people should be very worried.