Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Small Business and Minister Assisting the Minister for Tourism, Senator Sherry. Can the minister outline to the Senate how the Gillard government is helping—

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Wait a minute, Senator Bishop. I cannot hear the question. When there is silence, we will proceed.

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister outline to the Senate how the Gillard government is helping small businesses grow, increase productivity and create jobs? Can the minister outline how the government's strategy of tax cuts and incentives, workforce education and technological development will ensure a more prosperous future for Australia's small businesses and their millions of employees?

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

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question to the minister, arising out of that response. Can the minister outline how the Gillard government is helping small businesses go online to take advantage of the enormous growth in e-commerce? How is the Gillard government assisting small businesses to address labour and skills shortages and ensuring the professional development of Australian workers?

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

First, and most obviously, through the National Broadband Network, a visionary project supported by this Labor government to strengthen the economy but particularly to strengthen small business in this country—and always so well outlined by my colleague Senator Conroy. What better example could there be than the National Broadband Network—strengthening the economy, particularly in regional Australia, and of particular relevance to small business?

And, of course, we have had changes to research and development tax incentives—so well outlined by my colleague Senator Carr. These are particularly beneficial to small business.

We have tax cuts—more than $1 billion worth of tax cuts—that benefit small business directly. We have the National Broadband Network. We have research and development tax incentives. (Time expired)

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the minister aware of any alternative policies to the Gillard government's business- and worker-friendly programs? Do these alternative policies pose risks to Australia's long-term prosperity?

Opposition Senators:

Opposition senators interjecting—

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Yes, do they? Tell us whether they do.

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

As I mentioned, $1 billion worth of tax cuts—

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

How much?

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

One billion dollars worth of tax cuts for small business, funded by the mining resource rent tax, which the Liberal and National parties oppose. They oppose the mining tax. They want to pay the money back to mining companies, who actually want to pay it to the government. They also will increase taxes for small business. They are going to have to remove the $1 billion in tax cuts that we are providing for small business. But it gets worse: they are opposed to the National Broadband Network. They want to disconnect—unplug—small business from this important initiative. We have nothing from the Liberal Party and the National Party other than increasing taxes on small businesses and unplugging the Broadband Network. Where are the positive policies? (Time expired)