Andrew Bragg (NSW, Liberal Party) Share this | Link to this | Hansard source

Mr President, my question is to the Minister for Employment, Skills, Small and Family Business, Senator Cash. Can the minister outline to the Senate how the Morrison government is supporting small and family businesses to grow and prosper?

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

I thank Senator Bragg for the question. Senator Bragg and I had the opportunity to visit Settlement Services International recently, and we met with a number of refugees who have come to Australia, and who, with the support of government, are now running their own very successful small and family businesses.

The government understands the value of small and family businesses to the Australian economy, and we understand that when you back small and family businesses you help them to prosper, to grow and, of course, to create more jobs for Australians. But you have to get the policy environment right. Implementing higher taxes, I can assure you, Mr President, is not one of those policy environments that we want to be in. On this side of the chamber, we have successfully lowered the tax rate for small and family businesses from 30 per cent to 27½ per cent, and we know it will go down to 25 per cent in 2021-2022.

We're also addressing the issue of access to finance for small and family businesses with our $2 billion Australian Business Securitisation Fund, and we have also committed to an Australian business growth fund. This will provide long-term equity funding to small businesses.

We also know, though, that being paid on time is a priority for small and family businesses. We're taking the lead, as the government, in relation to this. As of 1 July this year, the government is paying invoices up to the value of $1 million within 20 days. And the finance minister and I have recently announced that as of 1 January 2020 Commonwealth government agencies will start paying e-invoices within five days and that, if we don't, we will pay interest on any late payments.

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

Senator Bragg, a supplementary question?

Andrew Bragg (NSW, Liberal Party) Share this | Link to this | Hansard source

Minister, what action is the government taking to create new opportunities for Australian small and family businesses?

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

Building on our job-creating policies, we're also committed to creating new markets and new opportunities for Australian small businesses. As both the Minister for Foreign Affairs and the Minister for Defence know, we have a $200 billion investment in Australia's defence capability. This is providing enormous opportunities for small and family businesses. We recently held a defence industries summit in Perth, in Western Australia, where a number of small businesses came along to hear about the opportunities that they are able to get involved in. There are around 3½ thousand SMEs in the Australian defence industry, and they employ around 30,000 hardworking Australians.

What this government is doing, though, to ensure that these businesses have every opportunity to benefit from our investment, is that we're ensuring a level of Australian industry content in all new defence procurements above $4 million.

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

Senator Bragg, a final supplementary question?

Andrew Bragg (NSW, Liberal Party) Share this | Link to this | Hansard source

Minister, how is supporting small business integral to supporting a strong economy?

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

There are around 3.4 million small and family businesses in Australia. They employ around six million Australians. It's critical to support these businesses, because if we want to grow our economy we need to ensure that we put in place the right policies for them to prosper and grow and, ultimately, create more jobs for Australians.

You don't, though, just support the small business itself. You ensure that that small business is able to support its employees. Those employees of course have families, which are then supported in turn. Anyone from rural and regional Australia would know that small businesses are the lifeblood of local communities. Often, the local football club is supported by a small business—sponsoring the local football club can never be underestimated, but there is also supporting small businesses to take on their first apprentice. We on this side of the chamber understand that you need to put in place the right policy framework so that small businesses can prosper, grow and create more jobs.