Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Small Business, Senator Arbib. Can the minister please outline to the Senate what the government is doing to support small businesses? In particular, what benefits will the government's minerals resource rent tax, introduced into the Senate yesterday, provide for small businesses?

Mark Arbib (NSW, Australian Labor Party, Minister for Sport) Share this | Link to 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.

Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Recognising that red tape is a key concern for small businesses, can the minister please outline to the Senate what the government is doing to reduce regulation for people running small businesses?

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

Motor vehicles are also capital items for many small businesses, so the extra tax relief will help them. The government is providing relief for an instant asset write-off of up to $5,000 for motor vehicles worth over $6,500. We are also reducing red tape, reducing the regulatory burden for small business. Just last night in the other place, the government introduced the Government Excise Amend­ment (Reducing Business Compliance Burden) Bill and the Customs Amendment (Reducing Business Compliance Burden) Bill, which are worthwhile steps in reducing the burden on small businesses. What did the shadow minister for small business, Mr Billson, say? He said it was a:

… worthwhile step by this government in reducing red tape and compliance burdens, particularly on small business.

So the Labor government is acting; it is working. This is just one of the things we are doing. Another thing is a superannuation clearing house. (Time expired)

Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. On 1 January the government introduced its historic Paid Parental Leave scheme. Can the minister outline how this scheme is supporting small businesses and is he aware of any alternative policy proposals that exist to provide paid parental leave?

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

Of course, we have introduced the Paid Parental Leave scheme and over 100,000 families have benefited. It is also working well for businesses, but there is a threat. The Liberal Party have tried to hide their own paid parental leave plan, because they know that by putting it into place they will tax businesses 1.5 per cent, which will be passed on to medium-sized businesses and small businesses, increasing their costs without any compensation whatsoever. The losers under the Liberal Party's scheme will be small businesses. Using the opposition's $5 million company income threshold that they want to introduce, 400 businesses with fewer than 20 employees will be forced to pay while massive businesses who can reduce down their profit will get off scot-free. That is the future of Liberal Party: taxation on our businesses. (Time expired)

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.