Carol Brown (Tasmania, Australian Labor Party, Assistant Minister for Infrastructure and Transport) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

At the 2022 election, Labor committed to improving payment times to small businesses, emphasising that payments to small businesses should be made within 30 days.

As part of delivering on that commitment, the Government commissioned Dr Craig Emerson to undertake a review of the Payment Times Reporting Act 2020.

The Review by Dr Craig Emerson found that in its current form, the Payment Times Reporting Scheme is ineffective.

Which is why this Bill overhauls the Payment Times Reporting Act 2020 to level the playing field and encourages large businesses to treat their small business suppliers fairly.

This is yet another action the Albanese Government is taking to deliver a better deal for small businesses.

Small businesses are the backbone of the Australian economy, employing more than 5 million people and contributing more than $500 billion to the national economy.

Our Government knows how important cash flow and payment times are to small businesses.

For small businesses who supply goods and services to large companies, it's simply unfair for those big corporations to delay paying the invoice.

Imagine walking into your local café, getting a coffee and saying, "I'll pay for that in 90 days."

It's simply unthinkable.

Just as it should be unthinkable for big businesses to create long delays when paying their small business suppliers.

This is a matter of fairness.

Fairness for Australia's small businesses.

And our Government will always back a fair go.

Dr Emerson's Review found that, while the Payment Times Reporting Scheme had merit, certain requirements in the Act impose unnecessary regulatory burdens on reporting entities, compromise the effectiveness of the Regulator, and limit the accuracy and accessibility of the data.

The reforms I introduce today will reduce regulatory burdens for reporting entities with obligations under the Act, incentivise large businesses to improve their payment times and streamline processes and remove inefficiencies in the Act.

These reforms include:

These new reforms will be a shot in the arm for small businesses with faster payment times improving cash flow, alleviating administrative burdens and reducing financing costs.

Better payment times benefit everyone with resulting gains to productivity, supporting higher wages and profits, and expanding employment opportunities.

These reforms are an important part of the Albanese Labor Government's better deal for small business.

We are delivering for small business, helping them to bounce back from challenges and improve their long-term resilience.

Our Budget is helping to ease the pressure on Australia's small businesses by providing more than $640 million in practical and targeted support.

We are extending the $20,000 instant asset write-off, making it easier for small businesses to invest in their business.

We will provide further targeted energy bill relief of $325 to around 1 million eligible small businesses through the Energy Bill Relief Fund, which builds on the up to $650 rebate that is being provided in this financial year.

The Government is investing $18.3 million in two new programs, the cyber health check program and the Small Business Cyber Resilience Service, to help small businesses build their resilience to and bounce back from cyber attacks.

This is in addition to the existing $23.4 million our Government is committing to the Cyber Wardens program delivered by the Council of Small Business Organisations Australia.

We have delivered $18.6 million to help support small businesses adapt and build resilience through digital technology through the latest round of Digital Solutions.

We are strengthening this vital sector by investing an additional $10.8 million to extend access to free mental health and financial counselling support for small business owners.

This new funding builds on the $15.1 million we have already invested in these programs.

We have updated the Commonwealth Procurement Rules, and small businesses are getting a big slice of the $75 billion in contracts the Australian Government spends every year, with a 20% target.

Unfair contract terms are now illegal thanks to our action, so small businesses can negotiate fairer agreements with large partners.

We have responded to Dr Michael Schaper's review of the Franchising Code of Conduct.

Our Government's response will help to ensure a fairer franchising sector by requiring all franchise agreements to provide a reasonable opportunity for franchisees to make a return on their investment and provide greater access to low-cost legal advice if disputes occur.

The Minister has also held three meetings of Small Business Ministers, with a fourth scheduled in June, to ensure all levels of government are working together to support the sector.

These measures sit alongside the Albanese Government's wider agenda that benefit small businesses.

Fee-free TAFE, cheaper childcare, expanded paid parental leave and small business grants for energy efficiency.

The Albanese Government knows small businesses are vital to Australia.

They are at the heart of communities across the country, and they will always be at the heart of this Government's decision making.

The introduction of this legislation today demonstrates this commitment again.

Full details of the measure are contained in the Explanatory Memorandum.

Debate adjourned.

Ordered that the resumption of the debate be made an order of the day for a later hour.