Zali Steggall (Warringah, Independent) Share this | Link to this | Hansard source

My question is to the Treasurer. Small businesses make up 97.5 per cent of businesses in Australia, and they are facing a perfect storm of impossible cashflow situations, with high interest rates and increased levels of debt from COVID and delayed rents now falling due and also rising. Add to this high energy prices, supply and staff shortages, and a downturn in consumer confidence and spending, and many are facing closure. What additional measures will the government consider—including delaying ATO reporting requirements—to assist them through this difficult period?

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Thank you to the member for Warringah for her question and also for the opportunity to speak with her about some of these issues in recent days. We know that Australian small businesses are doing it tough; I agree with you. This is because of, as you rightly identify, the inflationary pressures that they are under and the ongoing impact of higher interest rates.

While we know that the vast majority of Australian businesses meet their obligations, we do understand that, for different reasons, some are struggling to do that. There was a pause in collections during COVID, and this year the ATO has increased its engagement to try and help businesses catch up on their tax and superannuation obligations. We understand that this can be difficult, but it ensures that businesses that don't meet their tax obligations don't get an unfair advantage over those that do follow the rules.

The ATO does provide support to businesses who need help meeting their tax obligations, including payment plans. There are also a number of steps that they can take to help businesses stay on top of their obligations: SMS messages, myGov, phone calls, overdue letters and the like. So, if a small business is struggling, whether it's in the member for Warringah's area or indeed in any of the communities represented here in this House, I encourage them to reach out to the ATO as soon as possible to discuss what payment options might be available. The ATO is willing to work with businesses to help them meet their obligations, but in order for that to happen we need the small business to reach out to the ATO. They will always try and work with people who are genuinely trying to meet their obligations.

The member for Warringah asks me about new measures to support small business. Here I pay tribute to the Minister for Small Business for the new measures that we are funding in recognition of the difficult circumstances that small businesses face, whether it is the small business energy incentive, the targeted energy bill relief that those opposite voted against in this place, the instant asset write-off, the Industry Growth Program in the industry minister's portfolio, or the cyber wardens. This comes on top of all the support we're already providing by developing digital solutions; changing the Commonwealth Procurement Rules to favour small businesses; providing help with unfair contract terms; making sure small businesses are paid on time; and continuing the work we're doing on the franchising sector. All of this is in recognition of the genuine pressures that small businesses in particular are under. We are grateful for the representation of the member for Warringah. We encourage small businesses to reach out if they need help as the ATO continues its important work.