Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Hansard source

Thank you to Senator Bishop. That was a very big question, not a small question, and it demands some detailed response. Yesterday I launched research which reinforces the importance of small businesses to the Australian economy, compiled by the Department of Innovation, Industry, Science and Research. It found some two million small businesses provide jobs for almost five million Australians and account for nearly half of industry employment and a third of industry value added in the year 2009-10. Small business has a major presence in all industry sectors. It accounts for 98 per cent of all businesses in the agricultural sector, 96 per cent in the services sector, 91 per cent—interestingly—in the mining sector and more than 90 per cent in tourism.

Small business will be amongst the major beneficiaries of the government's tax package funded by the mining resource rent tax, of which we are particularly proud on this side. It is a fair tax that will take a large proportion of the superprofits of the mining giants in this country and redistribute them to all Australians but particularly to small business. For small business, this will include a range of tax cuts—tax cuts for small business, funded by the mining resource rent tax. This will include improved write-offs—the current $1,000 deduction will be increased to $6,500 and there will be an immediate write-off of up to $5,000 for motor vehicles. This will provide over $1 billion in tax cuts for small business, funded by the mining resource rent tax. And, of course, the company tax, which flows to some small businesses, will start early in the 2012-13 income year. These tax cuts for small business—more than $1 billion worth—are friendly policies for small business. They will boost cash flow significantly and help create jobs. (Time expired)