Ted O'Brien (Fairfax, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Trade, Tourism and Investment. Will the minister update the House on how the government's small business tax cuts are supporting exporters in my electorate to grow and employ more hardworking Australians? Are there any alternative approaches to this policy?

Steven Ciobo (Moncrieff, Liberal Party, Minister for Trade, Tourism and Investment) Share this | Link to this | Hansard source

I thank the member for Fairfax for his question. Like those on this side of the House, he understands that you must have a national economic plan that is about making Australia's small- and medium-sized businesses more competitive. He also understands what the coalition has been focused on about opening up more trade export opportunities for Australian small- to medium-sized businesses.

On the tax enterprise plan, we were very pleased, as part of the Turnbull coalition government, to put through the first tranche of tax cuts, because we on this side of the House believe that we should do everything we can to make Australia's small- and medium-sized enterprises as competitive as they can be. That is why, as a result of our tax enterprise plan, businesses with a turnover of less than $50 million will ultimately have their tax rate cut to 25 per cent. This is an important step alongside opening up export markets for all Australian businesses that are keen to grow exports or to move into exports, because, fundamentally, that drives economic growth and drives jobs.

One of the key export beneficiaries that we have seen is in fact a business in the member's electorate—Buderim Ginger. Buderim Ginger have been enjoying increased export success as a direct consequence of this government's export policies. This is a business that is taking advantage of those increased export opportunities by further investment. Buderim Ginger recently acquired a Victorian bottling factory to help grow their exports of ginger beer and cordial to export into China. But there is a small hitch: Buderim Ginger have a turnover of more than $50 million and, although they employ 400 Australians in their business, under Labor's plans, they will be denied a tax cut that will enable them to keep growing their business and enable them to be more competitive.

When the member asks whether there are alternative plans, our side would say, 'What alternative would you sensibly put forward for a tax cut?' But Labor has an alternative. Labor's alternative is to increase taxes. The Leader of the Opposition is actively promoting a policy to increase taxes on Australia's small- and medium-sized business. That is Labor's plan: to increase taxes. The fundamental problem with Labor's approach is this: they are a policy-free vacuum when it comes to a way to take this nation forward. This Leader of the Opposition stands for absolutely nothing. Four years ago he argued for tax cuts for small businesses; now he argues against them. Four years ago he said that the China-Australia Free Trade Agreement was a dud deal.

The simple fact is that Labor cannot be trusted on trade policy, they cannot be trusted on lower taxes and they certainly cannot be trusted to create the right business conditions for stronger economic growth and more jobs for Australians.