Land Tax

The Hon. S.C. MULLIGHAN (Lee) (14:31): My question is to the Premier. Did the government conduct analysis on landowners facing aggregation with no other investments to provide for their retirement?

The Hon. S.S. MARSHALL (Dunstan—Premier) (14:31): We have been listening to the people of South Australia for a very long period of time about the situation that they face with the highest land tax rate in the entire nation. I don't think there was a single person in South Australia who owned property who wasn't complaining about having the most uncompetitive highest rates in the entire nation, so we listened to those people.

On budget day this year we put out our position. We said at that point we were not prepared to put that in place on 1 July, as had been the practice under the previous government. We decided that we would listen and we would consult. This is an important reform. I do note–

The Hon. S.C. Mullighan: You had no idea. You get the numbers right; three times wrong.

The SPEAKER: The member for Lee is warned for a second and final time.

The Hon. S.S. MARSHALL: I do note that those opposite embarked upon their own tax reform agenda some years ago, in 2015, just before the 2018 election. Their estimate at the time was that aggregation would bring an additional $30 million into the state coffers each year. We had, at the point of the budget, estimated $40 million. But we said at the time that this is an interesting reform where we don't know the complex arrangements between land ownership in different vehicles, so we are very happy to listen to the people of South Australia.

We have had a huge amount of input into the model and the methodology that we have used. Ninety-five per cent of it at least has been extraordinarily helpful, and we thank the people for the submissions and the information and the examples that they have provided, especially in relation to what exists in other states, other jurisdictions around Australia. We now have a robust model and methodology in place, and now we have been able to go out with a draft bill. I feel extraordinarily positive about this.

I fail to understand those who don't like this bill because, quite frankly, 92 per cent of private investors will end up better off and 75  per cent of all company groups will end up better off. This is a fairer system. It is in line with the aggregation arrangements that exist in New South Wales, exist in Victoria, exist in Queensland, but, most importantly and unlike the reform agenda that those opposite took in 2015, when they talked about aggregation and only talked about the revenue impact, we were talking about the revenue but also the net cut that we were implementing.

Simultaneous with dealing with the aggregation issue, we are bringing down the top marginal rate to a nationally competitive rate and significantly increasing the threshold. It's a package. It's a reform package. Some choose to look at only one part of that package, but if you look at it in total it is a fair balanced system that is going to grow the economy, grow jobs and finally South Australia is open for business.