Question Time

Goods and Services Tax

Mr MARSHALL (Dunstan—Leader of the Opposition) (15:22): My question is to the Premier. Is the Premier moving away from his very clear call for an increase to the GST of 50 per cent, as outlined in his press release dated Thursday 26 November 2015?

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (15:22): No, I am using the same explanation I used in answer to a question that the leader asked on 1 December 2015, where he said:

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?

My answer was, 'It is not my proposal to increase the goods and services tax to 15 per cent,' and then I went through the history of it. Just to remind those opposite, because I have been saying the same thing—

Mr Marshall interjecting:

The Hon. J.W. WEATHERILL: You get to listen to the answer.

Mr Marshall interjecting:

The Hon. J.W. WEATHERILL: I am proud of the position that I have taken in relation to the state, because I have spoken honestly to the people of South Australia and I have spoken honestly to the people of Australia about the challenges that we face. Just to remind those opposite of what I said on 1 December and what I have been saying consistently ever since, although it has been reported in many and various ways—

Members interjecting:

The Hon. J.W. WEATHERILL: Let's just remind you of the history of this matter. We have the $80 billion cut to health and education that has been put in by the federal government. We then have the response by Premier Baird, which was to suggest a 15 per cent GST. I said it was worthy of consideration, because it was a conservative leader saying what this conservative leader was not prepared to say out loud, which is that we have a revenue problem in this country, and the basic health and education services are not being funded by the resources that we are collecting. So, I said he should be listened to, and that we should be debating this topic.

What became apparent is that, in the weeks that ensued, there were two propositions that were emerging. One proposition is that a 15 per cent GST should be spent on tax mix changes—that is, namely to actually move from direct to indirect taxation. That was the conservative argument. The other proposition was our proposition, which is that any extra revenue should be applied to health and education. My intervention—

Members interjecting:

The Hon. J.W. WEATHERILL: —and the media release that seems to fascinate those opposite so much, was to say, if that is the case—if the commonwealth is so determined to pursue tax reform and a tax reform mix—let them argue for an increase in the 15 per cent GST and we will get a share of income tax which we can apply to the health and education priorities of the nation. Now, of course, we see the Prime Minister of this country saying, 'I've lost confidence in the tax mix argument; I don't want to pursue an increased GST. And by the way, as a piece of advice to the state governments, why don't you increase payroll tax and land tax?'

Members interjecting:

The Hon. J.W. WEATHERILL: Mr Speaker, how does the opposition leader feel when the only idea he has ever had has just been kicked to death by the Prime Minister? The only idea he has ever had has been kicked to death by the Prime Minister—his own party!

The SPEAKER: Before the leader asks the next question, I call to order the deputy leader, the members for Chaffey, Morialta, Hartley, Finniss, Mitchell, Flinders, Kavel, Mount Gambier and the leader, and, to balance the ledger, the Treasurer.