Maria Kovacic (NSW, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Minister, what is the total number of company insolvencies since you came to government in 2022, and can you confirm whether this number has grown or shrunk over this period?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank the senator for the question. I don't have the numbers that the senator has asked for before me. There were some reports from COSBOA this morning in the media. We understand that many businesses are under the pump because of the result of higher interest rates and some of the challenges that we talk about in this chamber from time to time in relation to our economy.

That's why the government has looked to find measures to support small business, including the energy bill relief. I note, from the media reports, that one of the most pressing challenges for business was energy costs, which is why we targeted that measure by giving every small business $325, from memory, to assist with some of those increasing costs. We're also responding to representations from COSBOA around investing in cyber preparedness and cybersecurity, as that has been identified by small business as another area of pressure for them.

Cybersecurity, cyber resilience—Senator Ruston, thank you. I am talking to you about the ways the government is looking to support small business through some of the challenges that they have raised with us. They have raised energy, and we've responded to energy. They have raised cyber, and we're responding to cyber. On the instant asset write-off, the $20,000 instant asset write-off for small businesses, that relief is helping. So we are focused on ensuring that we can support small business where we can. Insolvencies, unfortunately— (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Kovacic, first supplementary?

Maria Kovacic (NSW, Liberal Party) Share this | Link to this | Hansard source

Minister, ASIC statistics have revealed company insolvencies hit 11,053 in 2023-24, with overall insolvencies since Labor was elected skyrocketing to 22,800 businesses. ASIC analysis shows these figures represent the worst average number of insolvencies per quarter under any government since records began in 1999. Minister, how are sticky inflation and record-high interest rates contributing to record insolvencies? (Time expired)

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I responded to this in my first question, acknowledging that inflation in the economy has been a challenge for small business. I accept that. I don't think anybody who follows the economy wouldn't have a view about that. But when we look at the rate of insolvencies—and I'm not saying this to dispute the fact that we acknowledge businesses are feeling the pressure of the current economic circumstances—insolvencies have averaged 0.24 per cent under the Albanese government, the lowest on record for any government. That's lower than they were under Prime Minister Howard and lower than they were under Prime Ministers Abbott, Turnbull and Morrison. So we will continue to look at ways to provide support for small business where the budget can find room for it and respond to the priority areas that they have raised with us.

Hollie Hughes (NSW, Liberal Party, Shadow Assistant Minister for Mental Health and Suicide Prevention) Share this | Link to this | Hansard source

Why don't you just tell them to work harder?

Sue Lines (President) Share this | Link to this | Hansard source

When you're quite finished, Senator Hughes—Senator Kovacic, second supplementary?

Maria Kovacic (NSW, Liberal Party) Share this | Link to this | Hansard source

The COSBOA Small business perspective report launched today states, 'Operating conditions are arguably the most challenging in living memory,' and 57 per cent of small-business owners reported high stress due to financial strain, with one in three not paying themselves, due to cash flow issues, and 25 per cent using personal savings to keep afloat. Minister, why should Australia's small businesses have to pay the price for the Albanese Labor government's poor economic management?

Sue Lines (President) Share this | Link to this | Hansard source

Before I call the minister, I'm going to remind all senators that I expect senators to listen in respectful silence. Minister.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

My response to that question is that we are doing what we can to support small business and to drive down inflation in this economy. The people that are seeking to block that and stop that are those opposite, so it's a bit rich to come in here and go, 'What are you doing? What are you doing?' when every vote you have in this chamber is to oppose a measure the government is putting in place to support people through a period of higher inflation. So you can sit there and raise questions, but the real measure is how you vote. When you vote in this place, you vote against energy bill relief. You vote against the cost-of-living measures that we have put in place. That is the reality, and your voting record showings it while we on this side get on with responding to challenges, engaging with COSBOA, looking at ways that we can support small business as the engine room of our economy. We will continue to do that, including in the renewable energy space, which is a real opportunity for small business in this country.