House of Assembly Fifty-Fifth Parliament, First Session (55-1) 55 1 Parliament of South Australia House of Assembly published Question Time GST Distribution GST Distribution Mrs PEARCE House of Assembly King GST Distribution Mrs PEARCE (King) (14:31): My question is to the Treasurer. Can the Treasurer provide the house with an update on GST distribution arrangements? Mr Cowdrey House of Assembly Colton Mr Cowdrey: The ones you signed up to? The Speaker House of Assembly The SPEAKER: Order! The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN (Lee—Treasurer) (14:31): I hear the member for Colton calling out, 'Yes, what did you sign up to?' Well, let's talk about who signed up to what when it comes to GST distribution arrangements. While they are— Members interjecting: The Speaker House of Assembly The SPEAKER: The member for Colton is warned. The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: —at it, tossing up half volleys outside of stump, let's lean into this one, shall we? Members would be aware that the GST is the state's single largest source of revenue and since it was first introduced in 2018, these revenues were distributed to states and territories according to the principle of making sure— The Hon. D.G. Pisoni House of Assembly Unley The Hon. D.G. Pisoni: Labor opposed all of that. The Speaker House of Assembly The SPEAKER: Member for Unley! The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: —that all places around the country had the same capacity to deliver the same standard of services and infrastructure— The Hon. D.G. Pisoni House of Assembly Unley The Hon. D.G. Pisoni: Labor didn't want the GST. The Speaker House of Assembly The SPEAKER: Order! The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: —as anywhere else. This principle, of course, is called horizontal fiscal equalisation. But in 2018, the former Coalition federal government— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: —changed the way GST revenues are to be distributed. Mr Cowdrey House of Assembly Colton Mr Cowdrey: And the federal Labor party voted for it. The Speaker House of Assembly The SPEAKER: The member for Colton is warned. Order! The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: They changed the way that they were being distributed. It was a Coalition government— Mr Cowdrey House of Assembly Colton Mr Cowdrey: You agreed to it. The Speaker House of Assembly The SPEAKER: The member for Colton is on a final warning. The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: —that Scott Morrison was the Treasurer of and just remember how those opposite described these changes as 'a massive win for South Australia'. Members interjecting: The Speaker House of Assembly The SPEAKER: Order! Member for Colton! The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: Don't take my word for it, take the words— The Hon. D.G. Pisoni interjecting: The Speaker House of Assembly The SPEAKER: Member for Unley! The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: —of the recently departed former member for Dunstan, who was the Premier of South Australia at the time, who endorsed these changes as a massive win for South Australia. The Hon. D.G. Pisoni House of Assembly Unley The Hon. D.G. Pisoni: At two elections you opposed the GST. The Speaker House of Assembly The SPEAKER: The member for Unley is warned. The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: What does this mean in practise? Well, this year, all states and territories lose the equivalent of $5½ billion in revenues that get funnelled towards Western Australia. For South Australia, our share of that is $366 million and in its place is only a temporary no worse off guarantee that ran out in 2026. That is what those opposite describe as a massive win for South Australia. Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: I described this change last year to a journalist at The Australian David Penberthy. I said: I am not overstating it to say that this new GST deal that was struck by the previous Coalition government is the greatest act of vandalism in our federation's history— Mr Cowdrey House of Assembly Colton Mr Cowdrey: The deal was a no worse off guarantee. It had nothing to do with what went through parliament. The Speaker House of Assembly The SPEAKER: Member for Colton, you are on a final warning. The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: —and I stand by that claim. I was pleased to see renowned economist Saul Eslake quoted on the weekend saying, 'It was the worst public policy decision of the 21^st century thus far.' Now, while we recognise the fiscal damage it does to every state and territory around the nation, except for Western Australia— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: —and while those proclaim this as a massive win for our state, the bell has now been rung. Well, in the 18 months that I have been Treasurer, I have been campaigning to make sure that this temporary 'no worse off' guarantee deal didn't finish in 2026 but that it was extended. We resolved unanimously— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: —as treasurers that this was a requirement for us, all state and territory treasurers. Members interjecting: The Speaker House of Assembly The SPEAKER: Member for Colton! The Hon. S.C. MULLIGHAN House of Assembly Lee Treasurer Minister for Defence and Space Industries The Hon. S.C. MULLIGHAN: I am pleased to report to the house that national cabinet now has extended this for a further three years. So in our forward estimates we won't see this run out in the way that it was left to us by the previous Liberal government here in South Australia and the previous Coalition federal government. It has been extended to protect the interests of South Australians against the sort of behaviour that they describe as a massive win for our state. Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. V.A. Tarzia interjecting: The Speaker House of Assembly The SPEAKER: Member for Hartley, your colleague is seeking the call.