Mr TRUSS —My question is addressed to the Treasurer. Can the Treasurer inform the House of the results of consultation concerning the government's commitment announced in the 1996-97 budget to allow capital gains tax rollover relief for small business? Can the Treasurer explain how the implementation of this measure will benefit small business?

Mr COSTELLO —One of the proudest matters that the government was able to deliver on in the 1996-97 budget was capital gains tax rollover relief for small business. We delivered on capital gains tax rollover relief for small business because we thought the taxation system should not penalise small businesses that were trying to grow bigger and small businesses that were trying to create more jobs.

After we announced that measure, the government engaged in an intensive round of consultation with small business organisations. On budget night we had said that rollover relief would apply only where a small business rolled over the proceeds from selling one asset into a like asset.

After consultation with small business, today I can announce, on behalf of the government, new measures to enhance capital gains tax rollover relief for small business. After listening to small business, the government has decided that the like-kind requirement for qualifying for rollover relief be dropped, that is, small business will now be able to roll over from one asset to another asset without any stipulation that it be a like-kind asset. This will give new improvements and new capital gains tax rollover relief for small business. This is the government which consulted with small business, this is the government which listened and this is the government which can now deliver in a new way.

Further, as a result of that consultation, we have heard the request from small business that the period for reinvestment of the proceeds from the disposal of an asset be extended to 12 months before disposal and 24 months after disposal. This gives small business people who are selling from one business and trading into another an extension of time in which to roll over their capital sum to grow or go into a new business.

The cost of removing the like-kind asset in 1998-99 would be of the order of $50 million. This will be another boost to small business, another delivery on the coalition mandate, another encouragement to small business to grow bigger, and new opportunities for jobs in new, growing Australian businesses. This government takes its commitment to small business seriously and this is a government which intends to deliver.