My question is to the Minister for Revenue and Financial Services. Will the minister update the House on how the government’s business tax cuts will benefit all hardworking Australians? Is the minister aware of any alternative approaches that pose a threat to Australian small business, including the 17,000 small businesses in my electorate of Corangamite?
I thank the member for Corangamite for her question. She is a most passionate advocate on behalf of all of the small and medium-sized enterprises in her electorate of Corangamite. Like everyone on this side of the chamber, she has been working incredibly hard as a member of our government team to cut taxes for small and medium-sized enterprises because she understands that small and medium-sized enterprises are the true job drivers in our economy, employing more than 6.5 million Australians. She knows this first hand because she and I have visited a number of businesses in her electorate, including the Irrewarra bakery, which employs around 40 full-time employees and 10 part-time employees. It will get a company tax cut. As a result of our tax cuts, it will only be paying 27.5 per cent rather than 30 per cent. This is good news for those businesses who are looking to employ and who are looking to invest and to grow their businesses.
But there are, I’m afraid to say, alternative approaches. Unfortunately, those opposite would seek to punish small and medium-sized enterprises. They will punish those enterprises, because they will hike up their taxes. They will slug small and medium-sized enterprises 30 cents in the dollar rather than 27½ cents in the dollar. They will do that despite the fact that those small and medium-sized enterprises represent around 97 per cent of all business in this country. Labor will not stop there. They will also impose a minimum of 30 per cent tax on the distributions of discretionary trusts. It is just another Labor tax grab on 270,000 small businesses.
10 August 2017