Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Minister, more than 27,000 businesses have gone insolvent since the Albanese government was elected in May 2022. The December 2024 quarter was the worst on record, with 3,852 businesses becoming insolvent. This is the third-worst quarter on record in a row following the June 2024 and the September 2024 figures. Mr Albanese now holds the record for the most business insolvencies for a prime minister, with an average of 2,648 per quarter. When a small business becomes insolvent, people lose their jobs, people lose their homes, and families and individuals suffer from severe hardship. Why has the Prime Minister ignored the record level of business insolvency under his government and instead made prices higher for small businesses while also increasing their green and red tape?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The senator is right to talk about the importance of small business. They are the engine room of our economy and the hearts of so many local communities across the country and they certainly employ millions of Australians—more than five million people—and contribute more than $500 billion to the nation's economy. The advice I have is that the number of small businesses has actually increased by around 140,000 to a record 2.6 million. Obviously that is a good thing. But we are conscious of the pressures facing small business, which is why the government has helped to ease the pressure on Australia's 2.6 million small businesses by providing more than $640 million in practical and targeted support.

We know that the opposition voted against energy bill relief for small businesses. Can I also indicate that the government has updated the Commonwealth Procurement Rules, and small businesses are now getting a larger slice of the $75 billion in contracts that the Australian government spends each year, with a 40 per cent target for contracts up to $20 million in value and a 25 per cent target for contracts up to $1 billion in value—so, using the power of Commonwealth procurement to ensure that small businesses get a reasonable share of what is a very large procurement budget. We're also improving payment times to small businesses, with a total investment of $33.4 million for a series of new reforms. In addition, we've supported small business with $60 million in cyber and digital support. I make the point that we recognise the importance of small business to the economy and have sought to provide assistance in the ways I have outlined and many more.

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

Senator Hume, first supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

A dry cleaner in Gordon in Sydney, Mr David Weng, recently saw his energy costs increase from $2,000 a month to $3,826 a month—nearly double. He said:

It's shocking. It's killing us. It really spoils my business. If you are running like that, there is no way you can keep going.

Will the Prime Minister admit that his failure to address energy prices and his failure to deliver the $275 price reduction is contributing to the record level of small-business insolvencies? (Time expired)

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

What I would say to Mr Weng in relation to energy costs is that we understand that energy prices have been very difficult for many small businesses, which is why this government did provide energy bill relief in previous budgets. It is disappointing that those opposite, who pretend to be the champions of small business in this country, voted against it. If you care, Senator Hume, about the energy prices that small businesses are paying and about the cost to their business, please explain to the chamber and to Mr Weng why it is that you chose to vote against energy bill relief for small businesses in this country. Let's be very clear about it.

Let's remember, also, that we take our advice from the Energy Market Operator, who has confirmed time and time again that Australia's energy system should be focused on the cheapest form of energy, which is renewables backed up by gas. (Time expired)

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

Senator Hume, second supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Minister, 4,191 hospitality businesses have become insolvent since Labor took office, and 603 of those became insolvent in the December quarter alone. Under your government, 90,000 hospitality jobs have been lost. Why is the government now opposing coalition policies designed to help the hospitality sector and the hundreds of thousands of Australians who work in hospitality?

Hon. Senators:

Honourable senators interjecting—

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

Order on my right! Senator Cash, I've just called for order.

Honourable senators interjecting—

Order across the chamber! Senator Gallagher and Senator Watt, come to order.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

This is Mr Dutton's plan for a long-lunch-led economic boom! What an extraordinary run-up to that question! I have some sympathy for Senator Hume, who has been out there trying to defend what I'm sure she knows is a dud of a policy—

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

Senator Hume, you've asked the question.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

without putting out a costing. Now she's coming in here and saying, 'Things are really bad, so we're going to vote against energy price relief and ask workers to fund tax breaks for long lunches; that's our economic plan and that's our set of priorities.' Only a Liberal opposition led by Mr Dutton could come up with such a ridiculous policy. Look at their priorities—$1.6 billion, up to $10 billion a year, on the long lunch. How is that good economic management?

Honourable senators interjecting—

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

Order across the chamber!