House of Assembly Fifty-Second Parliament, Second Session (52-2) 52 2 Parliament of South Australia House of Assembly published Question Time Goods and Services Tax GOODS AND SERVICES TAX The Hon. S.W. KEY House of Assembly Ashford GOODS AND SERVICES TAX The Hon. S.W. KEY (Ashford) (15:17): My question is directed to the Premier. I am wondering whether the Premier can advise the house on the recent national discussions on the goods and services tax. Ms Chapman interjecting: The Speaker House of Assembly The SPEAKER: The member for Bragg is warned for the second and final time. The Hon. J.W. WEATHERILL House of Assembly Cheltenham Premier Minister for State Development Minister for the Public Sector Minister for the Arts The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (15:17): Members would be aware that in the media yesterday there was speculation that tomorrow's meeting of the Standing Council for Federal Financial Relations (once known as the treasurers' conference) would be contemplating changes to the GST. This continues to be the noise that emerges from Coalition governments in the Eastern States: that the GST should be broadened to cover food, health and education, or that the rate should be increased, or that the process of allocating the GST between the states, known as horizontal fiscal equalisation, would be altered. These changes are completely unacceptable to this government. We will never stand for a GST to be extended to food, health or education services or the rate to be increased, nor will we permit the HFE arrangements to be thrown away. To do so would hurt households already doing it tough across the nation. I also note that these ideas are advanced at the same time as relieving burdens on businesses. So, it's a direct take out of the pockets of householders into the pockets of businesspeople, and it's something that we will not stand for. When the federal Liberal government introduced the GST, they originally intended it to apply to everything, including fresh food. With the new Liberal government, we see all of the conservatives across the nation lining up to finish the job, and all they want is another ally. All they want is another ally over here. They want to put the GST on everything, including fresh food, and they want to make people pay more tax. Just this week, we have seen Liberal premiers and treasurers interstate talking about jacking up the GST or broadening the base, and these have not been isolated instances. They came in response to an invitation by the current federal Treasurer back in July, when he said, 'If you are going to have a discussion about changing the GST, the states have to lead the argument because they are the ones that need the revenue.' So, this is an operation, this is a manoeuvre, getting the conservative states—hoping to have another mate over there—to join the chorus, to soften up the Australian community for an increase in taxation. Premier O'Farrell responded on cue. He came out suggesting that we should increase the GST. We know that if you want to increase the GST there are only two ways to do it: you either jack up the rate or you take away exemptions. We all know the biggest exemption is on fresh food. So they either want to jack up the rate or extend it to fresh food or have a look at the other exemptions. The two other big exemptions are health and education services. This Labor government will never support an increase in the rate of the GST or broadening its base. During all of this debate about the GST, the South Australian Liberals have remained mute and very suspiciously quiet, I might say. Make no mistake: if elected, they will roll over and allow the Coalition to— Mrs REDMOND House of Assembly Mrs REDMOND: Point of order, Mr Speaker. Surely, sir, this is debate now. The Speaker House of Assembly The SPEAKER: Yes, it is debate. We will move on to the deputy leader.