Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann, representing the Treasurer: will the minister update the Senate about the benefits of the government's small business package?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Canavan for his question and his strong interest and advocacy for small business, in particular in his home state of Queensland. The small business and jobs package is a central part of our economic plan for stronger growth, more jobs and to ensure that everyone across Australia has the best possible opportunity to get ahead.

Since budget night, my colleagues and I have travelled across the length and breadth of Australia, meeting with small business owners and their employees. It has been a truly humbling experience to see the people at the coalface who are generating our economic success and employing more Australians as they become more successful.

What we are hearing from small business around Australia is that they feel energised by the small business measures in our budget, including and in particular small businesses in Senator Canavan's home state of Queensland. It has given them the confidence to carefully invest in growing their business and to take just a number of examples in Senator Canavan's home state of Queensland—Rockhampton—we have had feedback from Sarah Becker from Becker James & Co accountants who told us about her many clients who are taking advantage of the small business package and the $20,000 mini tax deduction for small business by purchasing a series of assets and pieces of equipment to invest in their future capacity. Mr Chris Harris from C.T. Harris and Co, who is also in Rockhampton, has applauded the small business tax package explaining that many of his clients are already taking up the $20,000 immediate tax deduction and bringing forward the acquisition of items that were previously only on their wish list. They are small businesses who of course will use the purchased assets to generate income, employ more staff and boost struggling regional economies along the way. (Time expired)

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question: will the minister inform the Senate how the government's budget initiatives for small business will help farmers and graziers?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Certainly our small business and jobs package has been widely welcomed by rural and regional communities. For example, Ken McCaffrey, a well-known livestock agent in Senator Canavan's home state of Queensland, has told us that he has been talking to a number of property owners who are ordering new fencing and getting started on boosting their water storage capabilities. Thanks to some welcome showers of rain in parts of central, western and southern Queensland in recent days, they may well have a little more water to store along the way.

Overall, Mr McCaffrey tells us, the fact that farmers can fully deduct the cost of water facilities and fencing the year they purchase and deduct the cost of water storage assets over three years has meant not just a boost for those farmers but also for related businesses in rural communities that will be supplying the fencing materials and other equipment required.

It is fair to say that businesses across rural and regional Australia have very much welcomed this budget initiative. (Time expired)

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Mr President, I ask a final supplementary question: can the minister also outline for the Senate how these and other government budget measures will continue to benefit small businesses right around Australia?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I am pleased to inform the Senate that the tax deductions the government legislated last week with the support of the Senate will continue for a full two years. That means small businesses will be able to continue to instantly write off purchases up to $20,000 until June 2017.

As I have indicated, small business feedback has been very positive. They have told us that allowing the tax offset for two full years was a wise decision, because it allows small businesses the time to consider their decisions so they can make the best choices in the long-term interests of their business.

As you know, the Senate has also voted to support our 1.5 per cent tax cut for small business for those small businesses with a turnover of less than $2 million. This will mean, as of 1 July 2015, that small business will have the lowest tax rate since 1967. With the passing of these measures, we have delivered the lowest tax rate to small business since 1967. (Time expired)