CQ Today – We need a government that backs small business

Over the past week I have attended three roundtables with small businesses in Rockhampton, Bundaberg and Lismore. One of the attendees summed up the mood of all three meetings, saying that “this is the most hostile time for small business that I can remember.” Small businesses feel under pressure from skyrocketing inflation, labour shortages and now a massive tax grab from the Federal Government that hits small business harder than any other sector of the economy. Since becoming Leader of The Nationals, I have spoken to hundreds of small businesses. I spent the first five weeks in the role mostly in southern New South Wales during the Farrer by-election. I was out every day speaking to bakery owners, hairdressers, post office workers and pub owners. Almost all of them told me how tough things were. The last few years had seen their costs rise — and they can’t always pass these on — while interest rates increased and the conflict involving Iran made things even worse. This was all before Labor’s big-taxing new Budget. Indeed, the Labor Party did not even field a candidate in the Farrer by-election. Perhaps that explains why Labor has so badly misread the mood with their Budget. They simply had not been talking to Australians and do not seem to understand what their major concerns are. The feedback I receive is that what Australians want right now is a government with a plan to lower the cost of living. Everything is becoming more expensive. That is why interest rates are rising. Wages are going up too, but workers are no better off because their dollar does not buy as much as it used to. But instead of coming up with a plan to tackle the cost of living, Labor is now planning to hike taxes. It is hard to believe that our Government could be so out of touch with what people need when times are so difficult. What is worse is that these tax changes are squarely aimed at small business. The extra tax on trusts takes direct aim at small business. It is small businesses that use trust structures to protect their assets without having to deal with the red tape and regulation of incorporating. Big businesses will not be affected. I have spoken to many small businesses in real estate who have already seen the impact of the Government’s negative gearing changes. Houses are not selling like they used to and banks have withdrawn approval for some loans. This affects first home buyers too, because even if they do not intend to use negative gearing, Labor’s clampdown on it will weaken the market in the future and make banks less willing to accept real estate as security for a loan. Labor is also removing the capital gains tax discount and this hurts the smallest of businesses the most. For those small businesses that start with nothing, they have — or have close to — a zero starting capital base. That means the increase in value they achieve comes through their hard work and toil. They do not inherit wealth or purchase it — they work for it. But now the Government wants to fully tax their efforts, making many question why they bother. As one small businesswoman said to me, she doesn’t know how young people will choose to open small businesses in the future. This year’s Budget has been the worst received since Paul Keating. The Government should drop its massive tax grab and get back to focusing on what matters. The LNP would do things differently. We would use all of our energy resources to bring down energy prices and the cost of everything. We propose lifting the instant asset write-off to $50,000, so more businesses can invest in capital and address shortages of skilled labour. Most of all, we need to restore hope to people. Small business is the lifeblood of our regional towns. We just need a government that backs small business.