Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Hansard source

Thank you, Senator Marshall. This is a very, very important question, and I have heard already from the opposition their view about these things. Once again we see them in action: before the question is asked, they of course have the answers. They do not really appreciate that small business is the backbone of the economy; that there are some 2.4 million small businesses in Australia and they generate the jobs and the wealth right across the economy. It is quite clear that the opposition are not interested in their welfare.

Small business is an engine of innovation and a critical source of fresh ideas and new techniques. That is why this government has been working to support and strengthen small businesses since day one. That support continues in the government’s tax plan for our future. This is a plan that includes an early tax cut for small companies which will see a fall from 30c to 28c in 2012-13, two years ahead of a similar reduction in the general company tax rate. This measure will benefit some 720,000 small companies. It will deliver a direct financial benefit and a direct boost to cash flow. Importantly, it will give small companies an incentive to retain profits and to use them to build capabilities and to expand their activities. The government’s tax plan for our future will introduce an instant asset write-off for small businesses. Under this plan, small businesses will be able to get an immediate write-off of items worth up to $5,000. That means that—(Time expired)