Taxation Reform

The Hon. D.G.E. HOOD (14:39): I seek leave to make a brief explanation before asking the Minister for Business Services and Consumers questions about taxation reform.

Leave granted.

The Hon. D.G.E. HOOD: On 10 November 2014, Premier Weatherill announced a South Australian taxation reform on the back of discussion for federal changes to state funding. As part of this announcement, the government released its economic priority statement entitled South Australia: the best place to do business. The statement documents 10 objectives, including but not limited to areas such as creating an efficient Public Service, reducing red tape regulation and supporting innovation, investment and jobs within industry and minimising disincentives to economic activity.

The areas of concern canvassed in these incentives are most certainly complained about by businesses here in South Australia. For example, in today's The Advertiser Nigel McBride, the head of Business SA, was explaining the layers of bureaucracy in the public sector and the price we pay for that, as well, and possibly more troublingly that large businesses in the Riverland have currently and recently indicated that there would be greater benefits to them in setting up in Victoria rather than continuing to operate in South Australia. My questions to the minister are:

1. Does the state government concede that increased taxes, levies and charges on business in South Australia have, in fact, created an anticompetitive or, at the very least, less competitive market, particularly for small and medium-sized enterprises here in South Australia?

2. What tax benefits are likely to be passed on to businesses as a result of these reforms?

3. What is the projected time frame for these much-needed reforms?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (14:41): I thank the honourable member for his most important question. Indeed, our Premier, Jay Weatherill, recently announced the 10 economic priorities for South Australia which involve unlocking the full potential of South Australian resources, energy and renewable assets.

Members interjecting:

The PRESIDENT: Order!

The Hon. G.E. GAGO: The second priority is around premium food and wine from our clean environment; priority 3 is around being a globally recognised leader in health research, ageing and related services; priority 4 is about the knowledge state attracting diverse students, particularly international students and commercialising our research; priority 5 is about South Australia being a growing destination of choice for international and domestic travellers; priority 6 is about growth through innovation; priority 7 is about South Australia being the best place to do business; priority 8 is about Adelaide, the heart of the vibrant state; priority 9 is about international connections and engagements; and priority 10 is about South Australian small businesses having access to capital and global markets.

As the Premier said, we are open to business, we are open to ideas and we are open to people. This government has already done a great deal to assist businesses. We have made changes to business taxes and have been able to reduce them. We have also made significant changes to WorkCover which will result in significant cost savings for businesses. We have also undertaken significant red tape reduction reviews. I know that, in my own area alone, Consumer and Business Services has undertaken considerable work there and continues that work. In the area of VET, I recently conducted a review of red tape reductions and have rolled out a range of initiatives to address that.

This government is very much committed to making sure that we have an economy that can grow and allow businesses to flourish and grow, to reach new markets, to attract new investment and to unlock the full potential of our workforce through a training initiative that allows for the growth of skills and knowledge to ensure that we can fill those jobs and remain a prosperous and growing state.

Recently the Premier announced a commitment to look at further tax reform initiatives, and he is committed to engage in a comprehensive way with South Australia to look into new ways that we might approach taxation. It is great to see the Hon. Dennis Hood back in the chamber today. We are very pleased to have him back and very pleased to hear him congratulating the government on these fabulous initiatives.