Mark Arbib (NSW, Australian Labor Party, Minister for Sport) Share this | Hansard source

I thank Senator Bilyk for her interest in small business. I also thank Senator Conroy for his answer today on the NBN and the support it will provide for small businesses across the country, particularly in remote and regional areas. It will provide big support for small businesses to compete with other businesses across the country but also globally. There are over two million small businesses in this country. Small businesses are important to the Labor Party because they employ five million Australians, or 96 per cent of the Australian workforce, contributing 20 per cent of our GDP. That is why we are so supportive of small business and small business people.

This year the government is helping Australia's two million small businesses by making the tax system simpler and providing tax relief to reduce compliance costs and improve cash flow. From 1 July this year, small businesses can immediately write off multiple new assets valued at under $6,500, an increase from the current threshold of $1,000. There is no limit to the number of items that can be written off in a financial year. If a small business buys assets under $6,500 like computers, printers, desks—you name it—then in the next tax return they can write off the full value of each item. Many farmers are small business owners and it is important to note that they can access the write-off for multiple assets they buy in a year, such as water pumps or trailers. This change to the instant asset write-off threshold is worth $1 billion to small businesses in 2013-14 alone. For small businesses this means increased cash flow, which the Labor Party understands is vital for their success and vital to them employing Australians.