Land Tax

The Hon. S.C. MULLIGHAN (Lee) (15:03): My question is to the Premier. If the Premier is unaware how his aggregation policy will impact on commercial and residential rents, how can he support these changes?

The Hon. J.A.W. GARDNER: Point of order, sir.

The SPEAKER: The point of order is for that characterisation, 'if the Premier is unaware' of something. I understand where the member is coming from. I am going to allow that question, but, member for Lee, that is a gentle breach and I ask you to be better in the next one. Premier.

The Hon. S.S. MARSHALL (Dunstan—Premier) (15:03): I am happy to answer it because it allows me the opportunity to again reiterate to this house why we have embarked upon this reform. We expect this reform to significantly improve the conditions that we have for investment, for job creation, in South Australia. There is absolutely no doubt that at a top marginal rate of 3.7 per cent we have been an unattractive destination for property investment. This is suppressing property values in South Australia.

People in the property sector care about a number of things. Of course they care about their tax rates, but they also care about the value of their asset, and under the previous regime, I put to this chamber, the values in South Australia have been suppressed because we haven't attracted the interstate investment. We haven't even retained our own state-based investment into property in this state.

We are fixing a long-term problem for our state. Those opposite cannot possibly argue that at 3.7 per cent we are an attractive place to invest. They cannot possibly argue this when we know that New South Wales is at 2 and we know that Victoria is at 2.25. Yes, the other states are higher than where we have landed, but they are significantly lower than where we currently are in South Australia, and so that is our motivation.

When those opposite argue about what we expect to occur, what we expect to occur in South Australia is an investment into our state. That is precisely why we are doing this. We want to see this state continue to grow. We look at the most recent quarter figures in terms of private new capital investment in South Australia. It again surged by another 12 per cent. Australia went backwards. South Australia surged by another 12 per cent.

We continue to have employment growth in this state. Our employment growth since we have been in government is double—double—that that was being achieved by those opposite. We are putting the economic levers in the right direction to make this a more attractive place to invest, to create jobs and for our young people to stay in this state. On that point, I would like to say that we were absolutely delighted in the most recent statistics that look at net interstate migration.

There has been a fall of 31 per cent in those people. There has been a net reduction in those people living in South Australia in terms of net interstate migration, which is the difference between those leaving and those coming back into South Australia. Under those opposite, we were heading to 6,000, 7,000 or 7,500 people per year net leaving the state. It's now just over 4,000, and we want to get it back to zero. In fact, we want more people coming back into South Australia, and this is precisely our motivation.

The Hon. S.C. MULLIGHAN: Point of order: the question was about land tax aggregation.

The SPEAKER: Yes, I have the point of order.

Members interjecting:

The SPEAKER: Deputy leader! Deputy Premier! I have the point of order. I'm listening carefully to ensure that the Premier sticks to the substance of the question as per standing order 98.

The Hon. S.S. MARSHALL: I have been asked what I expect to be the outcomes of our land tax situation, and I think it's more investment, it's more confidence and it's keeping young people here in South Australia. We have made some very significant movements in our first 18 months in office: a 31 per cent reduction in the net interstate migration out of South Australia. We want to get it back to zero; in fact, we want people coming back to South Australia.

We want a net migration to South Australia. That will be a critical indicator of our success as a government and those opposite hate it. They absolutely hate it. They want to keep the highest land tax regime in place. They don't offer anything in a debate of reform in South Australia and that is why they are on the opposition benches—

Members interjecting:

The SPEAKER: Order!

The Hon. S.S. MARSHALL: —and that is why they will stay on the opposition benches.