James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

My question is to the Minister for Employment, Skills, Small and Family Business, Senator Cash. Small business is the engine room of our economy, with over 600,000 small businesses in my home state of Queensland, and nationally employing approximately six million Australians. Can the minister please inform the Senate how the Morrison government's 2020-21 budget is delivering an Australian response to the COVID-19 pandemic and recession by making crucial investments to support small businesses to invest, grow and employ more Australians?

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

I thank Senator McGrath for his question. Senator McGrath, as you'd be aware, small and family businesses are the backbone of the Australian economy, and that is why the Morrison government backs them every step of the way. Certainly, they have been greatly impacted by COVID-19. But that is also why the budget in 2020-21 is a budget that firmly invests in our small businesses in Australia.

Our $74 billion JobMaker plan puts small and family businesses at the heart of our economic recovery because they are the job makers in this country. As a government, we are continuing to put in place incentives for small businesses to prosper, grow and create more jobs for Australians; programs to help them to innovate, because COVID-19 has shown small businesses that they must have the ability to innovate to survive; and, of course, reforms to make it easier for small businesses to do business.

We're also incentivising small businesses to invest and employ through investments that minimise risk. We've implemented temporary full expensing and temporary loss carry-back. We've also put in place wage subsidies, because we want small businesses out there to be able to bring on new Australians into the workforce. We've put in place around $5.2 billion in wage subsidies, including helping small businesses to take on their first apprentice, which is so important, or, alternatively, to give a young person the chance to return to the workforce. Our extension of the small-business tax concessions to around 20,000 small businesses will also remove disincentives for them to invest in training in their current workforce.

As I've said, small businesses are the backbone of the Australian economy. The Morrison government will always back them, every step of the way.

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

Order, Senator Cash. Senator McGrath, a supplementary question?

James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

How does this build on the coalition government's strong record of assisting Australia's small businesses to invest, employ more Australians and pay less tax since 2013?

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

That's right. This is a government that, since the day we were elected back in 2013, has continued to put in place the policy framework to allow small and family businesses across Australia to prosper, to grow and to create more jobs for Australians. Small businesses are the backbone of the Australian economy. The coalition has a strong record on delivering policies that assist small businesses to grow and to employ more Australians. One of those policies, of course, is to fast-track tax relief for small and medium businesses so that they can invest and create more jobs. We know that if they can take back a bit of the money that they've paid to the government they will invest it back into their business. We're improving small-business access to finance so that they can access the money they need to invest back into their business to grow it and create more jobs for Australians, and importantly, we're ensuring that they are paid on time. Cash flow is king for small businesses, and that's why we're ensuring they're paid on time.

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

Order, Senator Cash. Senator McGrath, a final supplementary question?

James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Minister, why is putting in place the reforms, incentives and programs to support small business essential to economic recovery and job creation?

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

It is because the government understands that it is small and family businesses who are out there creating jobs. The government puts in place the policy framework that businesses can lever off to prosper, to grow and to create more jobs for Australians, and that's why we back small and family businesses every step of the way. They are the key to Australia's recovery from COVID-19 and to our future economic prosperity. If you look at Australia's 3.5 million small businesses, they make up almost 97.4 per cent of all businesses and they contribute 32 per cent of all private sector economic output. On top of that, they are the great employers of our nation, employing now around six million Australians. They are, in fact, one of the biggest employers in Australia. We also back them because we know they work tirelessly, and they deserve a government that backs them.

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

Order, Senator Cash. Senator Waters.