Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Hansard source

I think this is the amendment around linking retention of employees with business assistance. Labor won't be supporting this amendment. We have consistently raised concerns about the design of some measures in the stimulus package, such as the cash-flow boost not being linked specifically with the retention of employees. We have made it very clear that we have concerns around that. While we appreciate the intent of this amendment, there could be unintended effects. We already know that small businesses are reluctant to take on more debt, particularly in uncertain times. We saw that with the loans offered in response to the bushfires. This proposed requirement, whilst also being hard to enforce, could heighten the reluctance of struggling businesses to take on more debt, choose to end the business completely or retrench any remaining staff completely, which would be an even more diabolical situation.