Goods and Services Tax

Mr MARSHALL (Dunstan—Leader of the Opposition) (15:10): Does the Treasurer personally believe that we should have a GST rate of 15 per cent?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (15:10): I supported the Premier's plan. I argued for that plan at the treasurers' conference. I argued for that plan, and the plan was inspired, if I can say so myself; it was a very good plan. The commonwealth government has doubled the deficit. Their colleagues opposite took office and they said they would abolish the deficit within the first term. In fact, they have doubled it. They have doubled the deficit. They are a financial mess.

The plan that we took to increase the GST to 15 per cent was that that would stay with the commonwealth government and then we would cash in our national partnership payments and our special purpose payments and receive a portion of income tax. Why? Because income tax is the one tax that grows at the same rate as the economy and roughly the same rate as healthcare costs—a much more stable way for states to fund expenditure. Who thought this was a good idea? Mike Baird, a successful Liberal. Not the most unpopular Liberal in the country, but the most popular Liberal in the country—a very big divergence from this lot to the people supporting the Premier's plan.

We argued for that plan. Now the Prime Minister has walked away from it. He says he does not want that plan. Well, that means that the opposition and the commonwealth government need to solve this problem. How do we fund our hospitals? How do we fund our schools? What is the mechanism by which we provide health care to our citizens? Because there is a massive fiscal gap, and members opposite sit silent. So, did I support the Premier's plan? Absolutely.