Dai Le (Fowler, Independent) Share this | Link to this | Hansard source

I move:

That this House:

(1) acknowledges that:

(a) small and medium-sized enterprises (SMEs) are fundamental to the Australian economy, contributing significantly to job creation, economic resilience, and particularly in the manufacturing sector, where their role is vital to the national interest;

(b) manufacturing is a leading employer in the electoral division of Fowler, employing approximately 12 per cent of the local workforce, significantly higher than the national average of 5.9 per cent:

(c) hundreds of manufacturing businesses in the electoral division of Fowler produce essential goods across a variety of sectors, from food production and building materials, to medical supplies and recycling initiatives;

(d) manufacturing SMEs are grappling with rising operating costs, a shortage of skilled labour, and limited access to critical resources;

(e) the Government's Future Made in Australia plan, introduced in May 2024, does not sufficiently address the challenges facing the manufacturing sector; and

(f) manufacturing SMEs deserve a fairer share of Government support to achieve sustainable growth, scale effectively, expand employment opportunities and remain competitive amid growing domestic and international pressures;

(2) notes that the Government's recent relief measures, such as the one-year extension of the $20,000 instant asset write-off and a $325 electricity rebate for small businesses, were positive steps, however fall short of addressing the long-term, systemic challenges faced by small and medium-sized manufacturers; and

(3) calls on the Government to provide comprehensive and sustained support for small and medium-sized manufacturing businesses by:

(a) increasing the instant asset write-off to $50,000 and extending it indefinitely, to support capital investment in small and medium manufacturers and enable them to remain competitive as plant and material prices continue to rise;

(b) promoting manufacturing as a career to young Australians and migrant workers by continuing and expanding government investment in training initiatives, apprenticeships, English language training and foundational skills development to fill critical labour gaps and provide certainty for employers to boost productivity within the sector; and

(c) supporting lowering the cost of doing business by addressing the escalating costs for insurance, freight, energy, and compliance, which disproportionately impact small and medium manufacturers.

It has been a challenging year for many Australians—families, students, elderly and small-business owners—especially those living in Fowler and Western Sydney. Whether it is combatting the rise in the cost of living or striving to keep their small businesses afloat, Australians are feeling the pressure and are in need of effective policy measures that will support them during this difficult time.

I have knocked door to door within my Fowler electorate and have held numerous forums to understand the pressing issues and needs of my constituents. Recently I held a manufacturing forum and engaged with small and medium-sized businesses and enterprises—SMEs—within the manufacturing sector to discuss pain points and opportunities. These are some of the comments that the attendees shared: 'I may have to consider scaling down my business as I cannot afford to operate it.' 'How does the $325 electricity rebate provide enough support when my electricity bill is $10,000?' 'My equipment costs more than the instant write-off offered. Can the government expand this?' 'I'm having trouble attracting talent within our industry. We are short staffed.'

This was the recurring theme within the manufacturing forum: SMEs grappling with rising operating costs, shortages of skilled labour and limited access to critical resources. Steve Facer, the CEO of Chess Industries, shared how the cost of doing business is now significantly higher, impacting their ability to grow within the manufacturing industry. He said: 'It would be good to have the government provide some form of support in lowering interest rates, insurance and operative costs. This is what is affecting small manufacturing businesses' growth.' Another local food manufacturer owner, Henry, spoke about the cost of equipment being substantially higher and about there being pressure to keep up with technology to remain competitive. This is a costly exercise that not all small businesses can afford. Gus Medina, the managing director of Medina Engineering, which specialises in manufacturing purpose-built machinery, stated, 'There needs to be more funding for upskilling employees, such as digitally enhancing their ability to operate machinery utilising computers.' I have also recently shared BE Campbell's difficulty with labour gaps within their business and their struggle to attract talent within the meat industry, leaving them to consider a scale-down in business. This is just a handful of manufacturers' voices amongst the many that have reached out to me to seek representation and support.

I have spoken many times in this House about the importance of manufacturing in my electorate of Fowler, where it makes up about 12 per cent of the workforce. Hundreds of manufacturing businesses in South-West and Western Sydney produce essential goods across a variety of sectors, from food production and building materials to medical supplies and recycling initiatives. The only relief offered in the May budget was a $325 electricity rebate for individuals and, I think, $300 for small businesses and a tax deduction on the cost of eligible assets costing less than $20,000—and a couple of hundred dollars off energy bills, as I said. As we all know, the cost of equipment has gone up tremendously. In the supply chain, everything has gone up tremendously, and we need to really focus on what further support we can provide for many small businesses.

The feedback I have received from the manufacturing forum attendees was that this was not good enough from the government. There is also fear and uncertainty about whether this lifeline would be extended the year after. It is clear that we need to do better to support the SMEs, particularly those within manufacturing, so they can thrive and continue to grow the Australian economy.

This motion is to call for the government to not turn a blind eye on the struggling SME manufacturers and to take further action by (1) creating further funding opportunities for SMEs to upskill their workforce as technology continues to advance; (2) promoting a career to young Australians and migrant workers by continuing and expanding government investment in training initiatives, apprenticeships, English language training and foundational skills development; (3) increasing the instant write-off to $50,000 and indefinitely extending this initiative to give SMEs breathing room to operate without the pressures of heightened costs; and (4) lowering the cost of doing business by addressing the escalating costs of insurance, freight, energy and compliance, which disproportionately impact small and medium manufacturers. I have taken the time and effort to consult with my electorate, and the call for action is not unreasonable. SMEs in manufacturing need the government's support and they need it now; otherwise they will continue to be left behind.

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

Is the motion seconded?

Andrew Gee (Calare, Independent) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Dan Repacholi (Hunter, Australian Labor Party) Share this | Link to this | Hansard source

There is no government that prioritises manufacturing more than this Labor government. It's true that manufacturing today is not what it was in its glory days, and that is deeply concerning not only to me but also to the Australian Labor Party. A strong manufacturing sector is vital for a strong economy and a stronger Australia. Manufacturing creates jobs for Australians and ensures the high quality standards that come with products made right here at home. Unfortunately, times have changed, and our manufacturing industry is now a shadow of its former self. We no longer produce the mighty Holden Commodores or Ford Falcons or ship steel from the port of Newcastle. It's a shame. We stand here in a building that is more than 90 per cent made from Australian made products, from the steel used to make the flagpole, made in Newcastle, to some of the furniture, but Australian manufacturing has declined.

But this government is determined to change that. Through our $22.7 billion Future Made in Australia package, we are taking decisive action to revive this sector and secure its future. Our plan includes the transformative National Reconstruction Fund, which will create secure, well-paid jobs, support regional development and strengthen Australia's sovereign capability. Closer to home in my electorate, we're investing $1 billion into the Solar Sunshot program, which includes our SunDrive solar-panel-manufacturing facility and the opportunity to produce the most efficient solar panels in the world right there in the Hunter on the site of the old Liddell Power Station. This will produce more than 500 jobs in stage 1 and up to 5,000 jobs in stage 2. This isn't just about making things we need; it's about positioning Australia as a leader in the global push towards renewable energy.

But let's not forget the challenges. The member for Fowler has raised concerns about labour shortages and resource access in manufacturing, but she conveniently overlooked the government's proactive solutions, including fee-free TAFE. More than half a million Australians have already taken advantage of this program to gain skills in critical areas like manufacturing.

Let me be clear: these opportunities would vanish under those opposite. We have recently seen exactly what they think of fee free TAFE. Last week they voted against fee free TAFE, and the opposition leader has already said it's wasteful spending and he will cut it. The Deputy Leader of the Opposition recently claimed that people don't value fee-free TAFE because, as she puts it, 'If you don't pay for something, you don't value it.' That might be true if you've never struggled to make ends meet, but, for hardworking Australians, this could not be further from the truth or reality. The opposition's record speaks for itself. They drove our car-manufacturing industry offshore, ignored skills shortages and left our manufacturing sector in disarray.

Labor is delivering real solutions. Our $400 million Industry Growth Program is already supporting emerging manufacturers across the country. This program feeds directly into the $15 billion National Reconstruction Fund, the largest investment in Australian industry in living memory. It provides matched grants, advisory services and expert guidance to small and medium businesses, with more than 1,100 innovative companies already signing up.

We're not just investing in manufacturing; we're building a resilient small-business sector. Small business employs over five million Australians and contributes more than $500 billion to our economy each year. That's why this government has rolled out more than $640 million in targeted support, including energy rebates, and extended the $20,000 instant asset write-off. Under this government, insolvencies have remained at record lows of just 0.25 per cent, compared to the 0.32 per cent averaged under the last government. We have also improved cash flow for small businesses, with reforms that name and shame big businesses that fail to pay on time or create, while celebrating those that do the right thing.

Our Future Made in Australia plan is about maximising the economic and industrial benefits of the global transformation to net zero. We're creating secure jobs, attracting private investment and ensuring our economy is powered by renewable energy, not nuclear reactors that will only drive up prices. This government understands that Australians' future lies in a strong, diversified economy. We're creating the conditions for manufacturing to thrive, for small business to grow and for Aussies to succeed. The question is: will we seize these opportunities or let those opposite take them back and take us backwards? The choice is clear. This Labor government shows that the Labor Party is the only party committed to reviving Australian manufacturing and securing a stronger and more prosperous future for all.

Andrew Gee (Calare, Independent) Share this | Link to this | Hansard source

I commend the member for Fowler for bringing this very important motion to this House. I also commend the contribution of the member for Hunter, who mentioned the manufacturers and builders who made the very house which we're standing in today. It reminds me that Eugowra, that very extraordinary town in the electorate of Calare, contributed the granite to this place. Eugowra, of course, was devastated by the storms and floods in November 2022. But the fact that the member for Hunter harks back to the building of this place makes us appreciate not only the role that manufacturing has in the electorate of Calare, through Eugowra granite, but also the role of manufacturing around Australia, including in the member for Fowler's electorate, which she's very concerned about.

The issue here is that manufacturers and manufacturing represent production, and, to my way of thinking, the wealth of this country must always be based on what we make, grow and sell. That means manufacturing, and, if we want manufacturing to continue in this country, we need to make it easier for manufacturers to do business and to thrive, employ people and keep production going, along with our other sectors like agriculture, so that we can continue to have the unbeatable quality of life and prosperity that we enjoy in this nation, which we need to hand down to future generations.

As the member for Fowler rightly points out, this is a very difficult business environment that our manufacturers find themselves in—and, indeed, that all of our business operators find themselves in at the moment. The cost of doing business is actually very high. We have labour shortages. We have a lot of red tape, which is difficult for small to medium-sized businesses to deal with. We have the high cost of materials and inputs and the high cost of power. I don't think it's an exaggeration to say that many of our manufacturers are at breaking point.

In the Central West, we have many manufacturing operations that would be struggling with these high costs. We also have a lot of food manufacturing and processing taking place in the Central West. We have, for example, Simplot, which makes the iconic Chiko Roll for Australia and, indeed, the world. We have Ferrero, which makes Tic Tacs and Nutella. We have flour milling and canola oil manufacturing in Manildra. We have pet food manufacturing in Blayney, through Nestle Purina, and in Bathurst, through Mars. In Bathurst, we've got Devro, which makes sausage casings. And there are many, many more food and other manufacturing operations that are struggling with the high cost of power. We need to be taking concrete measures to make life easier for them so that they can continue to drive economic growth and prosperity.

The member for Fowler has come to this place and put forward the proposal that the instant asset write-off should be increased to $50,000 and extended indefinitely. I think that is a very worthy and worthwhile proposal, and I think many of our small and medium-sized manufacturing operations—and, indeed, businesses everywhere—would benefit from that. What it would mean is that businesses can make a purchase—an investment in, for example, machinery or equipment—and get the tax benefit in the year that they make the purchase, rather than having it written down over several years. We have seen in the past how important the instant asset write-off is for driving growth and investment, so I think it's very commendable that the member for Fowler is thinking about new and innovative ways that we can be helping small to medium-sized businesses.

Her motion also talks about 'lowering the cost of doing business by addressing the escalating costs for'—for example—'insurance, freight, energy and compliance, which disproportionately impact small and medium-sized manufacturers', and she's right about that. We also need to be promoting manufacturing as a career to young Australians by expanding government investment in training initiatives and apprenticeships, including for new Australians—something which I think is really important. The member for Fowler has put a lot of thought into this motion, and her words resonate across Australia and to manufacturers everywhere. We, as a nation, need to be doing more to help our struggling manufacturing sector. I commend this motion to the House.

Tania Lawrence (Hasluck, Australian Labor Party) Share this | Link to this | Hansard source

I too agree with the member for Fowler. Small- and medium-sized enterprises are fundamental to the Australian economy. They contribute significantly to job creation and economic resilience. So does the preparation of a skilled workforce, with appropriate training available to everyone. Small- and medium-sized enterprises need skilled workers just as large ones do too. Skilled workers can, and do, create small- and medium-sized enterprises of their own. All they need is opportunity, and that's precisely what the Albanese Labor government is giving them.

Nine out of 10 of the new jobs of the next decade will require post-secondary qualifications. Almost half of them will come through VET pathways. When we came into office in 2022 Australia was experiencing the biggest skills shortages in more than half a century after years of coalition neglect and worse than neglect. We have already created more than half a million free TAFE positions, on their way to filling the shortages across the areas of need. And we have created a manufacturing sector fit for 21st-century purpose. Now, we're committing to at least 100,000 free TAFE places every year. Many of those workers will be going into and later creating new manufacturing enterprises and new manufacturing jobs across Australia. Labor has provided them, and all of us, with a $400 million Industry Growth Program, a program we created to support emerging manufacturers everywhere, including in the electorate of Fowler. The program directly links with the National Reconstruction Fund with a $15 billion investment—that's the largest investment in Australian history in living memory. The Liberals and their friends don't like to talk about that. Perhaps it's because they are embarrassed. This is a direct encouragement of homegrown Australian business, providing finance to support projects that drive high-value industry transformation.

The Industry Growth Program invests in small businesses across the National Reconstruction Fund's seven priority areas: resources; transport; medical; science; defence capability; renewables and low-emissions technologies; agriculture, forestry and fisheries; and enabling capabilities. It's a declaration of faith in our country and the capacities of our people. We encourage small and medium enterprises everywhere in Australia to apply for this funding, which will help them to commercialise and grow their ideas. The program also provides an advisory service to give them access to the experts who can work beside them to help them plan that growth. The expert advisers are available in every state and territory. Innovative SMEs aren't shy. More than 1,100 have already signed up.

Matched grant funding, from $50,000 to $5 million, is also available for SMEs looking to grow. All of this is part of our determination to create a future made in Australia, by Australians, for Australians, and that's why we created the free TAFE positions that are already changing the lives of more than half a million Australians and will do so for years to come. That's a thought that never seems to have occurred to the Liberals. Even today they scorn it—a great policy they won't match.

The Albanese government believes in all of Australia. It's why we're building a stronger, more diversified and more resilient economy. It's already happening in the less than three years in office. If only the Liberals had played a part in this during their nine years, we would be much further along the way. Thought bubbles like their absurd nuclear pipe dreams won't do the trick.

Everywhere, except in the coalition party rooms, people understand that there's a global movement towards net zero. This is a global transformation which stands to provide enormous economic and industrial benefits to Australia. Our Future Made in Australia plan is a plan, not a pipe dream. It's already at work, creating secure, skilled and well-paid jobs. But the Liberals have never been particularly interested in secure, well-paid jobs, although I know many Independents are, like the member for Fowler. The Liberals never saw a pay rise application they liked, and they have repeatedly acted to weaken the power of Australian workers to advocate for improved conditions. We know that our future growth prospects lie in the intersection of Australia's industrial, resources, skills and energy bases. They all have to be strengthened and brought together.

I absolutely agree with the member for Fowler on the importance of small and medium-sized business enterprises, and I speak from direct and personal experience. There's a world of opportunity out there, and the Albanese Labor government is working for all Australians to ensure that we open up all of them.

Milton Dick (Speaker) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned, and the resumption of the debate will be made an order of the day for the next sitting.