Taxation Reform

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:44): My question is to the Premier. Given the fact that South Australia has had the nation's highest unemployment rate in trend terms for the past 16 months, will he commit to reversing his decision to remove the small business payroll tax rebate from 1 July this year?

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:44): Can I say that, unlike among those opposite, there is surging confidence in the South Australian economy. Can I just report that South Australia's business confidence improved by 5.3 index points in the December quarter to reach 94.2 on the back of a 5.2 gain in the previous quarter. This business confidence improvement is the biggest improvement in business conditions since the March 2010 quarter, so there is surging confidence. We saw the statistics—

Members interjecting:

The Hon. J.W. WEATHERILL: We saw the recent data that emerged—

Mr Knoll interjecting:

The Hon. J.W. WEATHERILL: We saw the surging highest price data, which came out the other day, as well as the lending data in relation to houses. We have seen the extraordinary response to the announcement of the submarines contract that is occurring. Just this week—yesterday, indeed—we celebrated, together with Ingham's, the announcement of 850 jobs to be created over the next 12 to 18 months largely based in the northern suburbs, plus an additional 700 jobs in the construction phase of those premises.

Just a few weeks earlier, we had that substantial announcement of 100 construction jobs at Whyalla, as the proposal by OZ Minerals to embark on an agreement with Arrium for a processing plant in Whyalla would also create an ongoing 100 jobs. All across the length and breadth of this state, we are seeing growing confidence in the South Australian economy.

There is no doubt that the transformation is underway. We have seen more job growth in the last 12 months than we have seen in the previous five years. This is what is happening in the South Australian economy. I know that there are those opposite who are desperate to talk down the South Australian economy—

The SPEAKER: Point of order.

Mr GARDNER: The Premier is completely avoiding the substance of the question about payroll tax and is instead debating.

The SPEAKER: The Premier has two minutes to turn his attention to payroll tax.

The Hon. J.W. WEATHERILL: The discussion that accompanied the question was about the business conditions and the unemployment rate in South Australia.

Members interjecting:

The Hon. J.W. WEATHERILL: South Australia enjoys the lowest payroll tax take in the nation and we are proud of the fact that this Treasurer, in the last budget, also introduced nation-leading taxation reform, such that we now have the lowest regime of business transaction taxes anywhere in the nation. And it is working. KPMG also did a survey of capital cities around this nation and found us the most cost-competitive capital city in the nation.

Members interjecting:

The Hon. J.W. WEATHERILL: You get the strained laughter from those opposite. Those opposite will also, in a few weeks' time, get to enjoy the benefit of our next budget, prepared by this Treasurer. All of the measures that he is asking questions about will be revealed in that budget and it will be about continuing the transformation of the South Australian economy, but it will also be about making sure that nobody is left behind in that process.

Dr McFetridge interjecting:

The SPEAKER: I call to order the member for Morphett. I warn for the first time the members for Stuart, Schubert, Kavel, Hartley, Unley, Davenport, Adelaide and Morphett and I warn for the second and the final time the members for Stuart, Unley, Hartley and Schubert. The member for Napier.