Small businesses are “at the very centre” of the Albanese government’s policy agenda, Small Business Minister Julie Collins says, declaring her responsibility for the housing and homelessness portfolios complements the needs of today’s small business sector.
Speaking to SmartCompany on the one-year anniversary of Labor’s federal election victory, Collins described the year as spent responding to the concerns of small business owners across every state and territory.
“We’ve listened, and we’ve acted,” she said, reflecting on energy relief funding and new cyber security funding in this month’s federal budget.
After facing sharp criticism over her role in Labor’s industrial relations reforms, Collins maintained the government “knows that small businesses are at the heart of many communities, and that’s reflected in the discussions I have with my colleagues.”
As Minister for Housing and Minister for Homelessness, Collins has also spearheaded one of the Albanese government’s most significant election promises: a $10 billion social housing investment fund, backing the construction of 30,000 new social and affordable rental homes across the country in its first five years.
But Labor has struggled to win legislative support for the bill, with both the Greens and the Coalition voicing their concerns in the Senate.
The Greens argue 30,000 new affordable homes is an insufficient target, and that the federal government should coordinate with the states and territories to support today’s renters through rent freezes.
They also state housing support should come through direct government spending, not interest gained from an investment vehicle.
The Coalition argues the fund would only worsen inflationary pressures in its current form, and say it is unlikely to contribute to any new home developments in this term of Parliament.
Navigating the stymied bill through the Senate will likely take significant effort from Labor and its most prominent housing policy representative.
However, Collins said her dual responsibilities do not pull against each other, as Australian entrepreneurs stand to benefit from increased access to affordable housing under Labor’s plan.
“One part of helping small businesses interacts with my other role as Minister for Housing,” Collins said.
“I’ve spent the past 12 months talking to small businesses right across the country, and one of the concerns shared nationwide is finding an affordable home for their staff.”
Regional house prices surged through the pandemic, and today’s elevated rental prices are making it more difficult for workers to establish themselves outside the major city centres.
In a tight labour market, small businesses operating in the regions are struggling to find the workers they need.
The lack of appropriate housing stock is also a problem for Australia’s long-term productivity and entrepreneurialism, experts say.
Steep and consistent house price growth can disincentivise new business formation, as Australians with funds at their disposal are more likely to see house investment as a ‘safe bet’ compared to the launch of a new venture.
At the same time, declining homeownership among young Australians is likely to lock them out of entrepreneurialism, as they cannot use their homes as collateral when accessing loans to kickstart their business.
Groups like the Australian Housing and Urban Research Institute have long called on Australian governments to consider affordable housing as a precursor to new and innovative business foundation.
“I’ll continue working to ensure that we have the right homes in the right places, so small businesses can employ the people they need,” Collins said.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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