Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

First I think it is important to get some facts on the table in relation to small business and the carbon price. The truth is that there is no small business which is directly liable for the carbon price. The truth also is that the electricity cost of a small retail business is estimated to make up less than two per cent of total costs. On the basis of Treasury modelling, therefore, the cost increase of the carbon price would be only 0.2 per cent of overall expenditure of a typical small business.

Obviously the government has also made provision in the previous budget for assistance to small business, and also in the clean energy package. We have increased the small business instant asset write-off from $1,000 to $6,500. This is a significant tax break for small business when they buy equipment for themselves. It is disappointing that the party of small business, those opposite, want to take back that tax break. If those on the opposition benches are not aware of that promise, that was a promise that Mr Robb, my counterpart, made. You are in the cart for making sure you take back the tax cut that this government is providing to small business. In addition, you would be aware that the government has included a new loss carry-back scheme in the previous budget. We estimate about 90 per cent of the beneficiaries of that to be small business.

I think it is important in this debate to recognise that there is a cost impact on small businesses as a result of electricity price impacts, but let us recall that the largest component of electricity price increases in this country has not been as a result of carbon. I know that is not something Senator Abetz wants to hear. (Time expired)