Lucy Gichuhi (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Small and Family Business, Skills and Vocational Education, Senator Cash. Can the minister update the Senate on how the Liberal-National government is able to fast-track its tax cuts for businesses with a turnover of less than $50 million?

Michaelia Cash (WA, Liberal Party, Minister for Small and Family Business) Share this | Link to this | Hansard source

I thank Senator Gichuhi for her question, and the answer is very simple: it is because of good economic management. Because of the good economic management of those of us in government, millions of small and family businesses will now pay less tax sooner because we are able to bring forward our tax cuts five years earlier than planned. How have we been able to do this? It's by putting in place economically responsible policies.

For example, under the economic stewardship of the coalition government, the economy has now grown 3.4 per cent throughout this year. That is actually the best since the mining boom. It is also a fact that, as a result of the policies that the coalition government has put in place, in excess of 1.1 million jobs have been created. Our economy is getting stronger, and our budget position is improving. The policies that have been implemented by our government will ensure, as well, that we're able to guarantee the essential services that Australians rely on. We will bring the budget back to balance sooner rather than later. But we will also be able to provide tax relief to small and family businesses in Australia five years earlier than planned.

These are types of policies you as a government are able to deliver when you put in place responsible economic management. You are able to build a strong and a resilient economy that gives every single Australian—in particular, those who are out there having a go—the opportunity to pursue their dreams. It's because of our responsible economic management that small and family businesses in Australia will receive tax cuts five years earlier than planned. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Gichuhi, a supplementary question.

Lucy Gichuhi (SA, Liberal Party) Share this | Link to this | Hansard source

What other policies has the government put in place that benefit small and family businesses and enable them to prosper and grow?

Michaelia Cash (WA, Liberal Party, Minister for Small and Family Business) Share this | Link to this | Hansard source

It's only the Liberal and the National parties—the coalition government—that support small and family businesses in Australia. We acknowledge that they are the engine room of our economy and we will always foster an environment in which these small and family businesses are able to prosper and grow, because, when they prosper and grow, they create more jobs, and that is a win for all Australians.

In the 2018 budget, we continued to put in place policies that will improve the economic conditions for small and family businesses. As you'd be aware, we extended the $20,000 instant asset write-off for another 12 months. As I travel around Australia, I have the opportunity of meeting so many small and family businesses that have told me about—or, at least, shown me—the equipment they have invested in, again as a result of this government's policy. Those of us on this side of the chamber will back small and family business every step of the way.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Gichuhi, a final supplementary question.

Lucy Gichuhi (SA, Liberal Party) Share this | Link to this | Hansard source

In fast-tracking our tax cuts for small and medium businesses, can the minister outline what this will mean for these businesses?

Michaelia Cash (WA, Liberal Party, Minister for Small and Family Business) Share this | Link to this | Hansard source

When you actually get a tax cut, like we're giving, bringing them forward five years early, it means you as a business keep more of the money that you have generated. We want to see businesses being able to keep more of the money that they work hard to generate. For example, if you're a small business and you're turning over a profit of around half a million dollars a year, as a result of this government, the Liberal-National government, bringing forward its tax cuts you will have an additional $7½ thousand in 2021 to reinvest back into your business and your staff and to help manage cashflow. The following year, when the 25 per cent tax rate cuts in, these businesses with half a million dollars profit will have approximately $12½ thousand extra. We will back small and family business every step of the way. We want to ensure they have, and they keep, more of their money, which they work so hard to generate.