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Tuesday, 13 March 2012
Page: 2630

Economy

Ms BRODTMANN (Canberra) (15:08): My question is to the Minister for Housing, Minister for Homelessness and Minister for Small Business. Will the minister update the House on what the government is doing to support the ordinary hardworking Australians who run small businesses? Why is it important to recognise their contribution to the economy and ensure they get a fairer share of the nation's wealth?

Mr BRENDAN O'CONNOR (Gorton—Minister for Housing, Minister for Homelessness and Minister for Small Business) (15:09): I thank the member for Canberra for her question and acknowledge her long association with small business. Indeed, she was a small business person herself before coming to this place. The government made a very important decision when confronted by the global financial crisis. It made a decision to stimulate the economy by investing in education and housing, providing accommodation for many and some great benefits for students across the land. But the other beneficiaries of that decision were the working people of this country, including those in small businesses. Every member of this place would know that in their own electorate many employees of small businesses worked on those stimulus packages to build, maintain and construct those fantastic pieces of infrastructure. It was a very important decision to make. It allowed us, when private capital was contracting, to invest to ensure that small businesses in this country survived and thrived, and many did exactly that.

We want to continue to ensure there are conditions for small businesses in this country to do well and to succeed because, as we know, small business is the engine room of our economy. It employs 4.7 million Australians. It is over 20 per cent of the GDP. It is a very important sector of our economy indeed. For that reason, when we seek to enact the minerals resource rent tax initiative we do so so that we can create the environment in which small businesses can thrive and we do so to ensure that they get a tax break, because they deserve one. That is why we are looking to ensure that those businesses have a $6,500 instant asset tax write-off so that they have cash flow, particularly businesses that are in their infancy. Everybody knows that it is absolutely critical that there is cash flow when you are starting up a business or when you have a small business. Whether it be a sole proprietor, a microbusiness or small business in general, these decisions by government are absolutely critical for our economy. That is why it is very disappointing that those on that side who pretend they are the party of small business will not support it.

The SPEAKER: Order! The minister will return to the question.

Mr BRENDAN O'CONNOR: Indeed, Mr Speaker. I am asked about small business. It would be absolutely disappointing, a crying shame, if we did not allow the mining tax to be enacted to ensure that millions of small businesses in this country get a tax break, because that is what they deserve. We on this side will do that. Those opposite pretend to be the party of small business, so they should get out of the way and let us pass that legislation.

Ms Gillard: I ask that further questions be placed on the Notice Paper.