Cost Reductions

Dr HARVEY (Newland) (14:20): My question is to the Premier. Can the Premier update the house on how the government is lowering costs for South Australians and how this compares with alternative approaches?

The Hon. S.S. MARSHALL (Dunstan—Premier) (14:20): It is with a great degree of pleasure that I answer this question—

Members interjecting:

The SPEAKER: Order! The Premier has the call. I would like to hear the answer.

The Hon. S.S. MARSHALL: —from the member for Newland. Like many other people, he knows that, under the previous government, the costs for business and individuals were way too high. This was suppressing economic activity in this state. It was making many of our young people decide—

Members interjecting:

The SPEAKER: Order!

The Hon. S.S. MARSHALL: —not to continue living in this state because they didn't feel that they had a future in a state with very oppressive costs. One of the things that we announced overnight was our new arrangements with regard to land tax in South Australia. This is an opportunity—a once-off opportunity—to significantly lower—

The Hon. L.W.K. Bignell interjecting:

The SPEAKER: The member for Mawson can leave for 20 minutes under 137A.

The honourable member for Mawson having withdrawn from the chamber:

The Hon. S.S. MARSHALL: —land tax rates in South Australia. We have three key components to our reform. One is aggregation, which is in line with what is occurring in other jurisdictions, like New South Wales, Victoria and Queensland, but, unlike those opposite, who once before attempted this aggregation issue, we are bringing our movement in this direction in place at the same time that we are increasing the threshold at which land tax is paid and massively reducing the rates for investors into this state.

We know that this is going to deliver a $70 million tax cut in South Australia, which is absolutely critical. We know that this is going to wipe 9,000 people in South Australia from paying land tax at all. This is great news for those people who have invested in our property sector in South Australia. This will drive further investment in South Australia. It will boost business confidence in South Australia. It will create more jobs in South Australia and that is what we are about on this side of the house. But it's not just land tax: this builds on the momentum that we have already created. On 1 January this year, we wiped out—

Members interjecting:

The SPEAKER: Order! The member for West Torrens is on two warnings.

The Hon. S.S. MARSHALL: —payroll tax on all small businesses in South Australia. Let's be very clear about this. Under those opposite, the threshold at which payroll tax was payable—

The Hon. A. KOUTSANTONIS: Point of order: every time the Premier compares or contrasts the opposite side, that is debate, sir.

The SPEAKER: It's obviously a matter of degree. I also point out that the member for West Torrens may have been interjecting during the Premier's answer. I ask that to cease so I can properly hear the Premier, but I will be listening to ensure that he sticks to the substance of the question. Premier.

The Hon. S.S. MARSHALL: Thank you very much, sir. The substance of the question is about lowering costs. I think it's pretty germane to the question to establish what the costs were and how they have been lowered, so I completely reject the criticism—

Members interjecting:

The SPEAKER: Order, leader!

The Hon. S.S. MARSHALL: —of those opposite on this issue. Let's be very clear—

Mr Szakacs interjecting:

The SPEAKER: The member for Cheltenham can leave for 25 minutes under 137A.

The honourable member for Cheltenham having withdrawn from the chamber:

The Hon. S.S. MARSHALL: —those opposite, sir, who are big advocates for big government and big taxes, are very upset about what we are pushing forward because we want to lower costs and lower taxes on individuals and on businesses in South Australia.

The Hon. A. KOUTSANTONIS: Point of order: debate again, sir.

The SPEAKER: Yes, I have the point of order, but again members on both sides, in fairness to the member, were shouting, interjecting, and that makes it very hard to hear the answer. It feels like the Premier is coming back to the substance and winding up his answer. Premier.

The Hon. S.S. MARSHALL: It feels like, sir, the opposition do not want to hear about lower costs on businesses and individuals in South Australia—

Members interjecting:

The SPEAKER: Order!

The Hon. S.S. MARSHALL: —because that is what we are delivering—

Members interjecting:

The SPEAKER: Order! I'm trying to listen. Members expect me to listen.

The Hon. S.S. MARSHALL: —in South Australia. We are delivering lower land tax. We are delivering—

Mr Malinauskas: Five-hundred million dollars of new taxes.

The SPEAKER: Leader!

The Hon. S.S. MARSHALL: —lower payroll tax. We halved the emergency services levy in South Australia by re-establishing the rebate that those opposite took away. They took it away with pride; we have restored it with pride because we want to put more money back into the pockets of hardworking South Australians. We also were very pleased last week when we heard a report of an on average 3 per cent reduction in electricity prices for households and small businesses on market contracts in South Australia.

Members interjecting:

The Hon. S.S. MARSHALL: Those opposite laugh, but that $62 reduction—

Members interjecting:

The SPEAKER: Order!

The Hon. S.S. MARSHALL: —in South Australia under this government compares extraordinarily favourably with the $477 increase over the last two years of the pitiful Labor government which preceded us. Moreover, we are working very hard to put downward pressure—

Members interjecting:

The SPEAKER: Order!

The Hon. S.S. MARSHALL: —on water bills in South Australia. Every day we are here, we are trying to lower costs on businesses and households in this state.