Gerard Rennick (Queensland, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Employment, Skills, Small and Family Business, Senator Cash. What steps is the Morrison government taking to support Australian jobs and build a stronger economy by ensuring small businesses get paid on time?

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

I thank Senator Rennick for his question. Cash flow is king for small business in so many ways. We in the Morrison government are committed to backing our 3.4 million small and family businesses every step of the way. They employ almost seven million Australians. As we know, they are the lifeblood and the backbone of the local communities in which they are located. They also, though, play a very important role as suppliers and service providers to big businesses. In fact, the trade between SMEs and big businesses is worth more than $550 billion per year.

We're all aware of the saying, 'Cash flow is king.' If we accept that saying, that cash flow is indeed king, then late payments to small businesses are a potential usurper of every small business in Australia. The damage that late payments can inflict on small businesses in Australia cannot be understated. That is why the government has put policies in place and is leading by example when it comes to ensuring that small businesses are paid promptly and on time. Senators will be aware that the government has introduced 20-day payment times for small businesses that have contracts with the government up to $1 million. We believe that all governments should put these policies in place, and I'm very pleased that the states have agreed through the COAG process that cash flow is crucial to any small business and that all governments should lead the way in paying small businesses on time. We're also taking action to ensure that large businesses who want to do business with government match our 20-day payment policy. Small and family businesses need to be paid on time— (Time expired)

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

Senator Rennick, a supplementary question?

Gerard Rennick (Queensland, Liberal Party) Share this | Link to this | Hansard source

What further action is the government planning to take to support small businesses to get paid on time?

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

We are introducing a new framework for reporting of large-business payment times to small-business suppliers. The government will shortly introduce legislation into the parliament that will require businesses with an annual turnover of over $100 million to publicly report how and when they pay their small-business suppliers. This is all about improving payment outcomes for small businesses. We will release the exposure draft next week and introduce the legislation at the end of March. The payment times reporting framework will create transparency and enable small businesses and, indeed, the Australian public to know how and when they will be paid by big business. I look forward to widespread support for these measures.

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

Senator Rennick, a final supplementary question?

Gerard Rennick (Queensland, Liberal Party) Share this | Link to this | Hansard source

Is the minister aware of any alternative approaches?

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

Unfortunately we are, because we know the policies that the Labor Party took to the election in relation to small business. Had those policies been implemented they would have quite literally decimated small and family business in Australia. On this side of the chamber, though, we are committed to putting in place policies that will see our small and family businesses prosper, grow and create more jobs for Australians; in particular, providing them with much-needed tax relief, something the Labor Party themselves don't believe in. We on this side of the chamber understand that the more money that small business have in their own back pockets, the more they are able to invest back into their own business. We are improving their access to finance, supporting small businesses with tax disputes, increasing their digital capability, but also—an incredibly important measure—investing in the mental health of small-business owners. They are the backbone of the Australian economy and we on this side of the chamber— (Time expired)