Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Minister, last week, in response to a question from Senator Canavan, you disputed recent ASIC figures which indicate insolvency rates in Australia are at a record high. You stated:

… what we're seeing at the moment is not at a historical high.

…   …   …

I'm just putting some facts on the table.

Minister, unfortunately the facts show that the average number of business insolvencies per quarter is the highest of any government since records began in 1999. The Albanese government has managed to drive more businesses into the ground per quarter than even Julia Gillard or Kevin Rudd did in the GFC. This comes on top of the latest monthly data, which shows Labor has now broken its previous September record for the highest number of business insolvencies in a single month, rising to more than 1,300 in October. Minister, will you apologise for misleading the Senate and, more importantly, to those Australian businesses hitting the wall, for whom you've said, apparently, 'It could be worse', even though that's not true?

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

Thank you, Senator Birmingham. I did not say, 'It could be worse', so don't verbal me.

No, I did not say the language that you used, as much as you'd like to argue that.

I did acknowledge that some businesses are becoming insolvent and that it's a really difficult time for many businesses. I also made the point that we've seen many new small businesses start in the same period. The point I was making was that corporate insolvencies as a proportion of total companies stood at 0.37 per cent for the period from November 2023 to October 2024. This rate is lower than the long-term historical average of 0.42 per cent—that's the point I was making last week; that was data from November 2001 until October 2023—and the pre-COVID average of 0.46 per cent. That is the point I was making, so my answer to Senator Canavan was correct. It remains higher than the COVID period averages, when a lot of companies were supported by taxpayer support during that time—and for good reason.

I went on to make the point that the Albanese Labor government have been working hard to make sure we are investing and supporting small business where we can. We've done that with energy bill rebates. We had a bit of a stand-off here about the instant asset write-off, but small businesses tell me that that is an important tax measure for them. We will continue to support small business. (Time expired)

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

Senator Birmingham, first supplementary?

Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

The recent COSBOA Small business perspectives report revealed that surging operating costs have crunched margins, with 46 per cent of businesses experiencing increased expenses and 57 per cent of small-business owners reporting high stress due to financial strain, with one-third not paying themselves due to cashflow issues. With a record number of small businesses hitting the wall, what's it going to take for your government to acknowledge that your plan isn't working and is hurting?

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

I think I made clear in the last answer that in our budgets we have been looking at what we can do to support small business, including by providing energy bill rebates—something that small businesses have argued for. There are our investments in cyber wardens programs, which, again, is an area small businesses have argued for. We've got the $20,000 instant asset write-off. I draw attention to the fact that we had 2.6 million small businesses in the June quarter—which is up on the number of small businesses from when we came to government, which was 2.44 million.

I'm not disputing some businesses are finding it tough right now, which is why the government and the minister, Minister Collins, have been so focused on responding to those areas of need. I would say the worst thing for small business would be a $315 billion cut to the federal budget, which would force them into even more difficult times. (Time expired)

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

Senator Birmingham, second supplementary?

Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

Actually, in the same COSBOA report, small businesses reported the worst thing for them was rising energy costs followed by increasing costs of doing business, inflation and the impact of interest rate increases.

Prior to the last election, Mr Albanese promised cheaper mortgages and cheaper energy bills and promised not to touch multi-employer bargaining. Does the government accept any responsibility for the fact that its broken promises are what are truly hurting Australian businesses?

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

I would draw the Leader of the Opposition's attention to the statistics that I read out earlier. Whilst those opposite would like to paint the bleakest possible picture, I think it is important to look at the numbers as they stand and as they compare to previous records. In terms of energy bill rebates—we brought it in, and you opposed it. You come in here and you complain about small-business energy costs, and then, in the same breath, you oppose providing that support. And then you go and complain about government spending when that spending is targeted to helping small businesses with some of their costs. You threatened to cut it. The worst possible thing that could happen to the economy and to small businesses, who rely on a strong economy to ensure customers and growth, is the $315 billion worth of cuts that Peter Dutton and his colleagues are arguing for.