STATEMENTS BY MEMBERS

Ms CLUTTERHAM (Sturt) (13:40): The recent federal budget contained many measures directed at backing small business, including the hundreds that operate across my electorate of Sturt, stimulating our local economy and providing the goods, products and services our community needs. Under this budget, small businesses will benefit from loss carry-back provisions.

Eligible businesses get this offset by choosing to carry back losses to earlier years in which there were income tax liabilities. This may result in a cash refund, a reduced tax liability or a reduction of a tax debt. Small businesses will also benefit from the $20,000 instant asset write-off.

Small businesses with an aggregated turnover of less than $10 million can deduct the full cost of eligible depreciating assets costing less than 20 grand that are first used or installed ready for use in an income year. This is proposed on a per-asset basis, so small businesses can instantly write off multiple assets. In addition, small businesses will continue to benefit from the existing four CGT exemptions, which have a significant impact on exit from a business.

Capital gains tax on exits has been the controversy, but the exemption regime will apply to 90 per cent of Australian small businesses, so don't listen to the noise. Get the facts, because when you do you will see that this budget contains many measures that back small business.