Question Time

Goods and Services Tax

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:29): My question is to the Premier. What economic modelling has the Premier undertaken on the employment impact of his proposal to increase the goods and services tax by 50 per cent?

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:29): It is not my proposal to increase the goods and services tax to 15 per cent. Perhaps just to understand the history of this matter, we have, I think on any view of it, a massive issue about the inability for us to fund the healthcare needs of the nation. Indeed, every state and territory has that difficulty, as does the commonwealth. It was exacerbated by an $80 billion cut that occurred in the first Hockey-Abbott budget in 2014, about which we campaigned strongly.

Once the various state elections were safely out of the way, we were joined by our conservative colleagues in the other states—the Liberal Premier of New South Wales, Mr Baird. He, in fact, promoted the idea of an increase in GST to 15 per cent, and he said at the time—this is a conservative premier—that we needed to raise more money to meet the healthcare needs of our state and the other states around the nation—a very significant intrusion of that debate.

He published some important modelling about the rate at which healthcare costs would increase and the gap between what we currently raise, and on the basis of that analysis I supported that idea as a concept worthy of discussion, and I continue to believe it is. On closer analysis, though, of the GST, what we are aware of is that the GST over the longer term in fact does not keep pace with the rate of growth of healthcare costs. So, it is an inadequate—

Mr Marshall: Have done any modelling?

The Hon. J.W. WEATHERILL: We have; we have done detailed modelling, and—

Members interjecting:

The Hon. J.W. WEATHERILL: We have done detailed modelling of the effect of GST on the way in which that meets our healthcare costs, and it is inadequate for the task.

Members interjecting:

The Hon. J.W. WEATHERILL: It is inadequate for the task. That is why we propose a different model, and that is: if the commonwealth want to promote a GST and use it for their ambitions to change the tax mix, which is something that they have regularly promoted, we could in fact convert our state-specific purpose payments into a share of income tax, which would give us access to a growth tax which would more approximate the rate of growth of our healthcare needs. So, that is the sense—

An honourable member interjecting:

The Hon. J.W. WEATHERILL: That is the proposal I am taking to COAG. That is the proposal that we are interested in promoting, and the healthcare needs of our state and our nation are absolutely essential for the wellbeing of our citizens, which sits at the heart of any fair and prosperous society.

Mr Gardner: Why don't you care about jobs?

The Hon. J.W. WEATHERILL: Well, there is not going to be many jobs—

Members interjecting:

The Hon. J.W. WEATHERILL: There aren't going to be many jobs in a society that can't care for the healthcare needs of its citizens. This debate is about meeting basic responsibilities for the healthcare needs of our citizens.

Mr Gardner: You haven't done any modelling; how would you know?

The Hon. J.W. WEATHERILL: That is not what it is about. It is not about some number-crunching exercise that those opposite are interested in. This is about basic human decency—getting access to a hospital bed when you need it, getting access to the healthcare needs when you need it. This is one of the great Labor projects—a public healthcare system—and we are not going to let those opposite tear it down.

Ms Chapman: Try fixing up your chemotherapy treatment!

Mr MARSHALL: That was some advice by the deputy leader to the Premier.

The SPEAKER: Before the leader asks his supplementary, would he be seated. The member for Morialta is braced? I call to order the members for Morialta, Adelaide and Chaffey, the leader, the deputy leader, and the members for Kavel, Flinders, Taylor and Davenport. I warn for the first time the members for Finniss, Morialta, Hartley and Adelaide, and the deputy leader, and I warn for the second and final time the members for Morialta and Hartley, and the deputy leader.