Economic Growth

The Hon. T.R. KENYON (Newland) (15:01): My question is to the Treasurer. Can the Treasurer update the house on recent economic milestones?

Members interjecting:

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (15:01): Finished? Are you ready? I thank the honourable member for this question. The government recently delivered a $258 million surplus, the first since 2009-10 and the first since the end of the global financial crisis. In fact, it is the government's eighth surplus in 14 years which highlights this government's ability to manage the state's economy during uncertain times.

First, it was the global financial crisis which saw the government make a deliberate decision to forgo budget surpluses in favour of commencing an unprecedented infrastructure spend which was labelled a false economy by members opposite. Now we face significant challenges with the closure of the Australian car manufacturing industry, a global decline in mineral commodity prices and gaps in naval shipbuilding. Yet, despite all of this, there are still many positive signs in our economy.

Recent ABS data showed that the South Australian economy has grown above $100 billion for the first time in our history. Gross state product increased by 1.9 per cent in 2015-16, outpacing our own budget estimates and forecasts and several key independent forecasts. It was the third strongest per capita growth of all states. We saw net exports up 55 per cent, mining up about 5 per cent, construction up about 5 per cent and household consumption—

Members interjecting:

The Hon. A. KOUTSANTONIS: I will get to unemployment in a second. Household consumption is also up, a real sign of confidence. This follows a drop last month in the headline unemployment figure, from 6.7 to 6.4 per cent, and 15 consecutive months of trend unemployment decreasing—15 consecutive months of decreasing unemployment—all signs that the economy is growing and business confidence is increasing.

This is on the back of the most comprehensive tax reform package in our state's history which saw us abolishing business stamp duties, returning $670 million to businesses and families. Tax cuts, which members opposite opposed and then asked us to bring forward, have helped stimulate the economy. Tax reforms on top of our WorkCover reforms have delivered an annual return of $180 million per annum to South Australian businesses. Last year's state budget was all about cutting taxes and creating efficiency in our economy, and this year's budget provides stimulus—$109 million worth of incentives to businesses to directly employ people. Every business with a payroll of under $5 million in South Australia will get $10,000 if they pay payroll tax to employ a new FTE. We know from another leak, courtesy of the member for Mitchell, that they were also contemplating a similar policy but obviously on a much smaller—

An honourable member interjecting:

The Hon. A. KOUTSANTONIS: —it's okay, it'll be over soon—form of stimulus, but we know that these stimuluses are working. In fact, they are working so well that nearly 1,700 businesses in South Australia have applied, with nearly 3,500 full-time equivalent jobs created on the back of this new incentive. That's the only way you are eligible, but of course, if you had read your leaked document that you gave to The Advertiser or someone leaked on you, you would have known that.

It is economic policies like these that are having a positive impact on small business in this state which will further cement South Australia's recovery. I ask members opposite to pose this question to themselves: had their colleagues in Canberra not supported the closure—

Mr VAN HOLST PELLEKAAN: Point of order, sir: the minister is debating.

The Hon. A. KOUTSANTONIS: —of the automotive industry, where would our unemployment rate be today?

The SPEAKER: I uphold the member for Stuart's point of order.