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House of Assembly - Fifty-Fourth Parliament, First Session (54-1)
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Motions

World Micro, Small and Medium-Sized Enterprises Day

Mr COWDREY (Colton) (12:12): I move:

That this house—

(a) recognises that 27 June 2019 is World Micro, Small and Medium-Sized Enterprises Day;

(b) recognises the contribution to our state of small and medium business owners, sole traders and entrepreneurs who put their capital on the line daily to create opportunity for themselves and their families;

(c) acknowledges that SME businesses are critical to the future prosperity of our state; and

(d) commends the Marshall Liberal government for improving economic settings for SME businesses in South Australia.

For statistical purposes, the Australian Bureau of Statistics defines a small business as one that is actively trading with zero to 19 employees. Microbusinesses are small businesses with zero to four employees, and the ABS defines a medium-sized business as one actively trading with 20 to 199 employees. For the purposes of covering the field, a large business is an actively trading business with 200 or more employees.

These definitions are not universally adopted, meaning that there are variations in statistical representations and sometimes commentary based on these differences, but I am certain that, for the purposes of this motion that recognises the contributions of such businesses to our state, we across both sides of the chamber can take a broader understanding approach. Since 2017, the UN has encouraged micro, small and medium-sized businesses to celebrate their day—this year, 27 June—in recognition of their work in local and global economies.

These enterprises, which generally employ fewer than 250 persons, are the backbone of most economies worldwide and play a key role in developing countries. SME businesses are certainly the backbone of our economy in South Australia. Importantly, worldwide MSME businesses tend to employ a larger share of the vulnerable sectors of the workforce, such as women, youth and people from lower socio-economic households. It is also important to recognise that MSMEs can sometimes be the only source of employment in rural areas.

MSME Day 2019 is not only dedicated to raising awareness of the need for greater investment into small and mid-sized businesses in developing countries; it is also a celebration of the gigantic contribution away from the spotlight that smaller companies make to our local, national and, more broadly, global economy.

It was estimated via recent ABS data that SME businesses contribute approximately $35 billion annually to our state's economy and employ more than a third of South Australia's workers. It is also estimated that there are more than 143,000 small businesses operating in South Australia or 98 per cent of all businesses in the state. It is also estimated that the highest proportion of these businesses operates in the services sector.

For a more local view, as the representative in this place for the people of Colton and the great western suburbs of Adelaide, I can assure members that we have both a strong and diverse SME sector. With an electorate running along the coast, we naturally see many food, retail and hospitality businesses from the marina at Anzac Highway at Glenelg North, through to the West Beach Road and Henley Beach South precincts, and of course the vibrant hub at Henley Square, where you can find the best fish and chips in Adelaide, to Grange Road, to the Lockleys local food precincts. Finding a fantastic coffee in Colton is not very difficult.

The Adelaide Airport Business District is also growing in popularity, with a vast array of small and medium businesses setting up manufacturing, packaging, logistics and maintenance businesses, and many more call this area home. Also, I cannot forget the many and even more diverse businesses run by mums and dads, often from their kitchen table or a back room, with professional services, accountants, lawyers, consultants, landscapers and mechanical repair businesses.

The member for Unley, I am sure, will certainly enjoy this one. I was contacted last week by a local setting up and expanding a cabinetry and woodworking business right in the heart of Henley Beach. We cannot forget the many sparkies, plumbers, chippies and others who have completed their apprenticeships and certificates and put their own skin in the game by starting their own businesses. The contribution of these small and medium businesses to our community is immense. It is immense in terms of our state and our economy, not just by way of economic contribution but by way of the opportunities they provide via employment for so many South Australians.

We on this side of the house recognise that ultimately the future prosperity of our state is reliant on our businesses creating jobs and employing more South Australians. We need to position the levers of government in a way that creates a competitive South Australian business environment, both nationally and globally, because a strong local economy and SME sector will create jobs for the next generation, drive investment and also allow government to continue providing the essential services that our community expects of government.

One of the biggest concerns that the business and SME sector voiced over previous years was the impact of payroll tax in South Australia, some describing it as a handbrake on our economy, a tax on jobs. I quote from one unidentified SME manufacturing business owner as part of the BDO state business report:

Reduce the red tape around small business, provide incentives to SME's to employ people—not make it harder with…payroll taxes.

This government listened to those concerns and has since released the handbrake and provided confidence to our small businesses by introducing the Payroll Tax (Exemption for Small Business) Amendment Bill to this place. The bill amended the Payroll Tax Act 2009 to exempt small businesses from paying payroll tax.

Under the existing act, payroll tax was levied on taxable wages at a rate of 4.95 per cent above the annual tax free threshold of $600,000. Changes introduced by this government mean that as of 1 January 2019 businesses with annual taxable payrolls below $1.5 million are no longer liable for any payroll tax.

Other key improvements to economic settings and job creation measures that the government is pursuing over the next four years include $95.9 million to reduce land tax from 1 July 2020; $360 million in cuts to the emergency services levy, as at 1 July last year; $202 million investment, with the federal government, in the Skilling South Australia fund; a record infrastructure spend and initiatives to reduce electricity, water and workers compensation costs. But wait, there certainly is more. A reduction in CTP premiums will see hundreds of dollars saved by businesses or sole traders with one or more motor vehicles.

We also recognise that improving avenues for our SME businesses to get to market is also incredibly important. It is why, in November last year, we opened the first of five new overseas trade and investment offices. The new office in Shanghai, China, facilitates business connections and provides support and guidance to South Australian companies looking to enter the Chinese market. Other overseas trade investment offices will soon be opened in Tokyo, Kuala Lumpur, Dubai and the United States of America.

Lot Fourteen, the headquarters of the Australian Space Agency, Mission Control, the Space Discovery Centre and the SmartSat Cooperative Research Centre, will also play a key role in creating and unearthing the next wave of South Australian businesses. A start-up hub will provide the ideal environment for businesses to flourish and accelerate their growth, providing 650 work spaces for entrepreneurs to develop their business ideas.

An innovation hub will bring together entrepreneurs from differing industries to collaborate and launch their businesses right here in South Australia. Also part of Lot Fourteen, the FIXE Initiative (Future Industries Exchange for Entrepreneurship) will connect and build the entrepreneurial ecosystem in our state and be a showcase of South Australian people, businesses and ideas.

I am pleased to say that since coming to government in March 2018 it is clear that SME businesses in our state are seeing improved levels of confidence. Last year's BDO SA State Business Survey noted:

Businesses have experienced a surge in optimism with 56 per cent believing the state economy is improving, up from 25 per cent last year.

Recently, the Marshall Liberal government welcomed the ANZ Stateometer report, which shows South Australia's economy as a stand-out amongst all Australian states and territories, experiencing above trend growth and improving economic conditions in the December quarter.

Our SME businesses are the backbone of our state economy. As the son of a small business owner and ahead of World SME Day on 27 June, I recognise the importance of the contribution our SME businesses are making to our state, both now and into the future. I thank them for taking a risk and continuing to take risks for employing and creating opportunities for South Australians. I commend the Marshall Liberal government for the decisions made to improve economic conditions for our small and medium businesses here in South Australia and I commend this motion to the house.

The Hon. Z.L. BETTISON (Ramsay) (12:22): I seek to move an amendment to the motion, as follows:

Delete paragraph (d) and insert the following in lieu thereof:

(d) calls on the Marshall Liberal government to do more to support small and medium-sized businesses in South Australia, and to stop its high-taxing agenda on many small and medium-sized businesses in South Australia.

The Marshall Liberal government campaigned throughout the last state election for more jobs, better services and lower costs, but what we have seen is the complete opposite. First of all, we heard that Service SA centres were going to close, and now we are seeing an increase in taxes for individuals and small businesses.

The Marshall Liberal government has increased motor vehicle charges, the Marshall Liberal government has increased driver licence renewals and, just a few weeks ago, it was revealed that the Marshall Liberal government will be increasing licence fees for small bars and venues in the city by an extreme amount. The Treasurer, in a desperate bid to make up money lost through the GST shortfall, announced a 500 per cent increase on all small bars and venues in the CBD. It is a desperate attempt to raise an additional $130 million a year. This 'entertainment tax' will hurt small businesses at the hip pocket and goes against everything that the Liberals are proposing in this motion.

The Marshall Liberal government claims to be improving economic settings for small and medium-sized businesses in South Australia, but whacking a 500 per cent increase on taxes does the complete opposite. Another tax that the Marshall Liberal government has slammed on small business is the 'tradie tax'. We know that many microbusinesses are run by tradies all around South Australia. In this budget, tradies are being hit with a 10 per cent increase on individual contractors' licences and a 10 per cent increase on registration fees for tradies performing plumbing, gasfitting and electrical services.

Yesterday, we also heard about the rise in the solid waste levy. This is a dramatic increase, to $140 a tonne. It will be charged through the local government, and we know that it will be passed on to residents and businesses. We know that increased costs can change behaviour, but really this is adding incredible costs and incredible taxes to those microbusinesses we are celebrating today. We know that we must change our behaviours. We know that we will support the circular economy and we know that we must recycle more, but this is like a sledgehammer—like changing it overnight. For many businesses, who will see the impost of this, this will be very difficult to swallow.

To make matters worse, it was announced a few weeks ago that the Marshall Liberal government has cut all funding to Brand SA. Brand SA had a specific responsibility to support micro, small and medium-sized businesses to grow and expand into new markets and to improve economic settings for those businesses. This is so disappointing for me. I have had many conversations with people who reached out to the opposition about why this decision was made. We say to people, 'We have to make up the shortfall; it's the GST,' or, 'Perhaps they didn't have their priorities right.'

However, what I am very concerned about is that an organisation that was supported by government, and also by members and sponsors, is being cut. I might be wrong, but the Liberal philosophy is about people supporting themselves, and that is what Brand SA did. Sure, the government played a role, and maybe the purpose could have been for government to reduce that role over time. Maybe there was opportunity to pivot, to do more interstate and internationally, but we just saw them being cut. We know that more than 8,000 businesses supported the state logo. Sure, that is going to be continued by the department, but how much money and time will really be provided for that?

In recent times, we have seen the Marshall Liberal government take the axe to small business in this state. In last year's budget, the Minister for Innovation and Skills cut the Small Business Development Fund, which provided valuable support to small businesses in our state. Over the last 12 months, the minister and the Marshall Liberal government have cut a range of programs that supported small businesses, and they have not replaced the cuts with any other programs to assist small businesses in our state.

The motion being moved by the member for Colton commends the Marshall Liberal government for improving economic settings for small and medium-sized businesses in South Australia. However, the question that needs to be asked is: what have the Marshall Liberal government and, in particular, the minister responsible for small business done to assist small business since taking office in March 2018? The Minister for Innovation and Skills has cut all support programs and is yet to introduce into the parliament legislation that seeks to support small business. Paragraph (b) of the motion reads:

(b) recognises the contribution to our state of small and medium business owners, sole traders and entrepreneurs who put their capital on the line daily to create opportunity for themselves and their families;

This is certainly something the opposition supports and believes. However, if this Marshall Liberal government believes this, too, you have to question why they are slugging taxpayers, many of whom are small business owners who will see an extra $350 million this year in increases in taxes and fees—way above CPI. This will impact businesses every day. We are going to see those costs go up, not just every quarter, not just every year, but every day when they pay extra money in dramatically increased fees and charges, so much so that this flies in the face of what this Marshall Liberal government said they would do: a promise of lower costs and better services.

I come from a family who had a small business—my father was incredibly disappointed when I chose not to follow in his footsteps—so I know how much stress and commitment it takes to run a business. We know that many families dedicate their time to do this, and what we as parliamentarians, as policymakers, must do is support people in these businesses to be able to conduct their business, develop their business and innovate in their business. Ultimately, we want to see small and microbusinesses move to become medium-sized and eventually large businesses. I recognise that 27 June 2019 is World Micro, Small and Medium-Sized Enterprises Day, and I support the amended motion.

The Hon. D.G. PISONI (Unley—Minister for Innovation and Skills) (12:31): I stand to support the unamended motion. I thank the member for Colton for bringing this motion to the house because it is extremely important for South Australia. If we look at some of the statistics about small business and South Australia, there is no doubt that South Australia should be known as the small business state because we are in actual fact a state of small businesses.

In 2017-18, according to the ABS there were 146,492 small businesses in South Australia—that represents 98 per cent of all businesses in South Australia—and they employ 43.9 per cent of the state's workforce, which is around 367,000 people. Of those 146,492 small businesses, about 92,000 do not actually employ anybody, so you can see that there is a group of small businesses doing the heavy lifting. We are also celebrating those 92,000 microbusinesses in the member for Colton's motion this afternoon.

It is fair to say that the microbusinesses that have been operating in South Australia for quite some time and have not taken on employees are now looking at taking on employees for the first time. They are looking at taking on trainees and apprentices. We are spending around $200 million on removing barriers, bringing enablers into play and working with industry and even individual businesses to deliver bespoke programs so that it is easier for them. We are even mentoring those businesses that have never employed an apprentice or a trainee to start that process, and we are with them right until the day the apprentice or trainee starts in that role.

We are making sure that they are comfortable and that they have the tools they need. We are even providing grants for those businesses to prepare them to take on apprentices and trainees because, obviously, important requirements need to be met to ensure a safe workplace. We are providing support for materials or tools required, even a workbench for some of those more traditional skills and we are also providing support for the apprentices themselves so there is not an extra burden on the employer.

Some very big things have happened for small business since the election of the Marshall Liberal government, and one, of course, is the increase in the threshold for payroll tax here in South Australia. I think it would be the best part of a decade ago that I recall we had quite large growth in real wages, but the threshold remained at $600,000 and, therefore, smaller and smaller businesses were hit with the obligation to pay payroll tax. In the lead-up to the election, we identified that as being a barrier for employment and a barrier for business growth in South Australia.

The increase in the payroll tax threshold commitment was made prior to the election and confirmed in the budget last September. From 1 January this year, that threshold was lifted to $1.5 million, which is an extraordinary outcome for small business. It is not just the 3½ thousand businesses that were paying payroll tax between $600,000 and $1.5 million but all those businesses that were not growing for fear of having to pay a payroll tax obligation.

Microbusinesses were celebrating this motion as well. There was no incentive for them to grow their businesses because not only would they have to find an extra 4.9 per cent (or, in round figures, 5 per cent) of their wages to send off to the government but they would also have to start another round of paperwork every month.

Many of our small businesses are people who have moved from the trades into their own businesses, whether they be contractors working in partnership or, alternatively, contractors working together with other microbusinesses or contractors who have gone on to employ more staff and apprentices of their own. Being a tradie in business for 22 years, I can tell you that the last thing they want is more paperwork. They want to be out there on the job doing the work, not doing the government's paperwork. That is not what they want. So that is another big advantage in lifting the payroll tax threshold.

Another interesting statistic is the amount of confidence that has returned to the private sector here in South Australia. The latest ABS figures show a record number of South Australians in jobs, a record number of South Australians in full-time jobs and a record number of hours worked and wages and salaries paid. What does that do? Firstly, that growth in full-time jobs indicates that businesses are now, finally, able to plan longer term.

It is much more difficult to shift full-time employees out of your business if conditions change than casual workers. That is where the growth was under Labor. In three of the last four years they were in office, not only did they deliver the highest or the second to highest unemployment rate in the country but we also saw a boom in part-time and casual work under Labor because there was simply no confidence in the business sector.

What we are seeing now is confidence in the business sector. We are seeing a record 1.4 billion hours worked in South Australia, which have delivered $50 billion in wages paid to South Australians—and that is a total record—and that money is being spent here in South Australia. If you can stay with me here, Mr Acting Speaker, there is more money for businesses to attract more customers through reductions in the emergency services levy and no obligation to pay payroll tax so they can grow their businesses until they get to a $1.5 million payroll.

You can see that we have moved those levers. Small business is very quick to respond to those changes in the levers, and that is what we have seen, whether they are on the farm, in the retail sector or in manufacturing. I should also use this opportunity—and I will—to thank the former member for Sturt, Christopher Pyne, for his work as defence industries minister and then as defence minister for engaging the manufacturing sector in South Australia to transition into the defence sector. We have seen an incredible transition.

Companies that in some cases were struggling with the very difficult contracts that they had to work to in the motor industry are now moving into the defence sector in a very strong and robust way. They are prepared to invest in their businesses and employ more staff. I was at Axiom a few weeks ago. They had 23 staff when they were building parts for the motor industry and now 95 per cent of their business is in the defence sector and there is over 60 staff: apprentices, trainees and interns from university. They are moving and growing.

As you can see, small business has responded to the changes in policies introduced by the Marshall Liberal government, and the economy is benefiting because of it.

Mr McBRIDE (MacKillop) (12:41): I rise to speak in support of the original motion put by the member for Colton:

That this house—

(a) recognises that 27 June 2019 is World Micro, Small and Medium-Sized Enterprises Day;

(b) recognises the contribution to our state of small and medium business owners, sole traders and entrepreneurs who put their capital on the line daily to create opportunity for themselves and their families;

(c) acknowledges that SME businesses are critical to the future prosperity of our state; and

(d) commends the Marshall Liberal government for improving economic settings for SME businesses in South Australia.

I thank the member for Colton for highlighting this important day, as it provides an opportunity for reflection on the importance to our state of our micro, small and medium-sized enterprises: 27 June, a day designated by the United Nations General Assembly, recognising the need to improve small business access to microfinance and credit. The goal stated by the UN for this day is to encourage and increase awareness and actions to support small business, in particular in developing countries.

This day, under the UN designation, is also a celebration of the significant contribution that smaller companies make to the global economy. Micro, small and medium-sized businesses are the powerhouse behind the South Australian economy. These businesses are a significant generator of employment and contribute to the economic prosperity of our state. These businesses include small family delis, small supermarkets, farming enterprises, retail outlets and wholesale traders. They also include accounting firms, physios, doctors, hairdressers and regional tourism service providers.

What is the scale of these enterprises? A medium business is defined by the ABS as employing between 20 and 199 employees. Small businesses, according to the ATO, have an aggregate turnover of between $2 million and $10 million annually, while the ABS identifies that small businesses are those that employ between five and 19 people. Microbusinesses, according to the ATO, have a total business income of less than $2 million, and the ABS categorise microbusinesses as enterprises that employ between zero and four employees. These businesses are important to our state. They are providing employment, job security and, in turn, support the state's economic growth.

The ABS provides some useful reference to the contribution to state employment from a range of small and medium businesses. These statistics identify that small business's share of employment was 43 per cent of all employment in South Australia. These are important employment sectors for both our rural and regional populations.

Small business owners are hardworking people. We know that hotel owners routinely work 13 days per fortnight. They are on site servicing the needs of their customers. We know that farmers are on duty 24 hours, seven days a week. We know that tourism operators work long hours and are often on call, and that a great many retail traders are looking to maximise their opportunities to capture the retail dollar. Small business owners are particularly important in small towns. They provide the goods and services that make our towns viable and sustainable.

Small businesses also have to navigate a lot of red tape. They are dealing with WorkCover, superannuation, including catering to the preference of employees, and they are dealing sometimes with complex employer-employee relationships and workplace agreements. They are also organising training. They are also skilling themselves and their workers. Small business owners are often a jack-of-all-trades. They are multiskilled.

They are the HR manager, the accounts manager, the finance brokers, dispatch and customer service managers, and they are also the workers. These businesses are often not large enough to warrant specialist staff to fulfil these roles where they are required. They need to be practically across all facets of their business. Small businesses have to be very nimble, flexible, fast and adaptable. They are susceptible to changing and cyclical economic times. They need to be competitive as they often compete with a large number of competitors.

One of the great things about our state is that a great many small businesses are developed and initiated by tradespeople. These people have done their time as apprentices, learned their trade and then have seen business opportunities. These tradies go out and start up electrical, plumbing, building, carpentry, earthmoving businesses and the like. However, the start-up can involve people mortgaging their family home. They can find it extremely hard to attract finance due to the risk-averse financiers. These people often will borrow from family to start out.

The Marshall Liberal government recognises the importance of these micro, small and medium businesses to our economy, and it has been proactive since the election last year in creating settings that help these businesses thrive. We understand that successful business means employment, productivity and value-adding, which contribute to a successful economy. We understand that businesses in the country and the city need the right conditions to thrive. We have taken steps to improve business conditions through a range of measures, including cutting red tape and reducing the cost of doing business.

Cutting payroll tax has been a great initiative for small and medium businesses, which has provided a payroll tax-free threshold for businesses that have a wage bill up to $1.5 million. Businesses that have a wage bill between $1.5 million and $1.7 million are also benefitting from a reduced payroll tax rate. This has provided much-needed relief to business, which means they can reinvest in their own success rather than paying tax.

We have been supporting businesses through supporting traineeships, including providing support and funding for new traineeships. This in turn gets new people into employment. It results in upskilling of individuals. It provides opportunities for businesses and employees to gain mutual benefits. We have been investing in infrastructure, making doing business more attractive, which includes providing funding for mobile blackspot towers. Infrastructure of this type is very important in all businesses regardless of their size. Good mobile reception is fundamental for doing business in 2019, whether you live in the city, metro or regional areas.

The emergency services levy cuts have assisted households and businesses across the state, again freeing up money for individuals to make choices about where and with whom they do business. This gives me an opportunity to touch on my experience in small businesses. I come from a small farming business down in the heart of MacKillop. Obviously, it was where I was born and where I grew up. It was a farming business that was and still is a small business, sometimes employing three full-time staff and then casuals and sometimes taking on at least 20 contract employees in busy times like shearing.

One of the greatest opportunities I had came after leaving the farm and going to work at a shipyard in Adelaide. The business was owned by a Croatian who built fishing boats for South Australians and, in the end, for people around Australia—and they were not all just fishing boats. It was a small business that was started up by my former boss, who was a tradesperson. He was a fitter and turner and worked at Holden.

I remember him starting out initially doing two shifts at Holden to try to save enough money to start up his own boatbuilding business, and I know that he mortgaged his house to do so. In the heyday of his business, before it was finally wrapped up because of some mistakes that were made and some of the vagaries of small business, there were 120 workers of 20 different nationalities in that shipyard. It was a real experience that I was so glad to participate in. There was never a dull moment in that shipyard. It was tough work and there were tough conditions.

There were some serious injuries in that shipyard, too, with accidents and WorkCover and being in the metal trade. There were no deaths, but we had an employee who lost one of his fingers in a grinder and someone lost a bit of his hearing and sight due to an unforeseen pressurised testing of pipes causing a massive explosion. It was not done correctly because English was part of the problem for the yard, and the gentleman who got himself in a spot of bother could not speak a lot of English. Going through and being able to communicate and work well, to survive and get along in that business is one of those accolades that I will never forget. It was a position that I will always feel privileged to have had.

In speaking in support of this motion, I say to the members of this house: next time you are out and about in your electorates, I encourage you on 27 June to think about the importance of micro, small and medium-sized businesses to our communities and our economy. I commend the motion to the house.

Dr HARVEY (Newland) (12:51): I am very happy to rise today to support this motion, and I very much commend the member for Colton for giving us all the opportunity to express how important micro, small and medium-sized businesses are to South Australia. Small business is the lifeblood of our nation with, according to the Australian Chamber of Commerce and Industry, 98 per cent of businesses in Australia being small businesses employing about five million Australians, one-third of young Australian workers and 40 per cent of all apprentices. In South Australia, we have 143,000 small businesses representing, as with the national figure, 98 per cent of all South Australian businesses, contributing $35 billion annually to our economy and employing 36 per cent of our entire workforce.

Far from the class warfare rhetoric that those opposite and their friends around Australia like to trumpet, owners of small and medium-sized businesses are hardworking, regular people who have taken huge risks to create opportunities not only for themselves and their families but for others. Thirty-six per cent of our entire workforce in South Australia is employed by small businesses. That is a significant proportion of South Australians and shows how important small businesses are for our state. On this side of the house, we have an everlasting commitment to improving conditions for local businesses and making sure that it is as easy as it possibly can be for small businesses to go about doing what they do.

Since coming into government, we have abolished payroll tax for 3,200 small businesses with a taxable payroll of up to $1.5 million, with a further 400 businesses with taxable payrolls of between $1.5 million to $1.7 million having their rate of payroll tax reduced. As I know every member on this side of the house understands, reducing and abolishing payroll tax for small businesses brings to an end small businesses in South Australia being punished for providing jobs and livelihoods for over one-third of South Australians and removes a disincentive for them to create more jobs for South Australians.

The abolition of payroll tax for small businesses is one of the many promises which we made to the South Australian people prior to the state election last year and which, now that we are in government, has been delivered. The fulfilment of promises like this is having a very real and positive impact on the confidence of South Australian business. The Sensis Business Index for the March quarter showed that, where small and medium business confidence fell nationally to plus 34, the confidence of South Australian small and medium businesses has increased to an all-time high of plus 56, making South Australian small and medium-sized businesses the most confident in Australia.

Encouragingly, now that South Australia has a government that recognises that regions matter, the confidence of regional small and medium-sized businesses in South Australia has increased to a record high of plus 72. The index further showed that the perception of the South Australian government by small and medium-sized businesses is at a six-year high at plus 19. This is a stark turnaround from the years of negative ratings under the previous government's high cost of utilities, power, rates and burdensome red tape.

To keep this momentum going, to keep businesses investing in South Australia and to attract new businesses to South Australia, it is crucial that we ensure we have the skilled workforce that businesses now and into the future will need. This has been a priority of the Marshall Liberal government, and the Minister for Innovation and Skills has wasted no time in getting young South Australians into apprenticeships and traineeships, something I know is a real passion of his.

In partnership with the Morrison government, we are investing over $200 million to create an additional 20,800 new apprenticeships and traineeships. Since this program began, we have already seen 10,000 commencements, which is a very strong start. There is still plenty more work for us to do but, as with the many other messes that those opposite left for us to clean up, turning around the historical decline in enrolments in apprenticeships and traineeships in our state cannot be done overnight.

Another important area in which the Marshall Liberal government is supporting small and medium-sized businesses is reducing congestion across the state. There are massive amounts of money in this year's budget to upgrade key intersections across the state to reduce congestion. When you are sitting stuck in traffic, you are usually focusing more on whether you are going to be late to something rather than the cost to the economy, but the reality is that congestion is a real and frustrating cost to our economy.

I do not want to focus only on the policies of the government when discussing the success of small and medium-sized businesses, regardless of how positive our policies are. The overwhelming reason why small and medium-sized businesses succeed is that the businesspeople themselves devote so much of their time, energy and capital working to improve their business and create more opportunities for themselves and others South Australians.

Earlier this year, I hosted a round table with the Minister for Trade, Tourism and Investment. At the round table were a number of small businesses from my electorate, and the Minister for Education's electorate, who I am very pleased were able to attend. The Minister for Trade, Tourism and Investment discussed with these businesspeople strategies that they can implement to take advantage of the amazing area in which they operate, and I would certainly like to pay tribute to all those in my electorate who work very hard in this sector.

There is no doubt that small and medium-sized businesses are critical to the future of our state and I thank everyone who is involved. I thank the member for Colton for moving this motion and I commend it to the house.

Mr COWDREY (Colton) (12:57): I would like to thank the member for Ramsay, the Minister for Innovation and Skills and the members for MacKillop and Newland for their contributions to the debate on this motion. I would also like to quickly point to two of the issues raised by members who spoke. Firstly, I think it is pertinent to remember that the crux of the payroll tax issue is not just about allowing businesses already paying payroll tax to reinvest in their businesses in different ways but also the disincentive that the low tax threshold created for businesses wanting to grow and expand in our state.

I wanted to touch on that and also reinforce a point that the member for Newland made: this motion is really about recognising the hard work, dedication and contribution of owners and others who support our SME businesses across South Australia. We thank them for their contribution to our great state.

Amendment negatived; motion carried.

Sitting suspended from 12:59 to 14:00.

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