Employment Figures

The Hon. R.I. LUCAS (15:11): My question is to the Leader of the Government. Given the government's claims that the budget just introduced is a jobs budget, can the minister please explain why the government's own budget forecasts for employment growth for next year, 2015-16, is at only 1 per cent, which is the lowest employment growth forecast of all the mainland states in Australia?

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) (15:11): I thank the honourable member for his important question. The 2015-16 state budget shows that the state government is forecasting a return to surplus, while delivering a $985 million stimulus package, including major tax reforms and targeted investments in growth industries to boost the economy and create jobs.

The slowdown in the Australian economy and the collapse in commodity prices, the withdrawal of the federal government's support for our automotive industry and our naval shipbuilding industries and the $1.4 billion in federal government cuts to health and education over the next four years are all threatening South Australian jobs. That is why our forecast for employment is at the level that it is.

The Hon. D.W. Ridgway: I never thought I'd hear you parroting Koutsantonis's rubbish.

The PRESIDENT: Honourable member, you do not refer to a member of the other place by their last name.

The Hon. G.E. GAGO: That is why this South Australian government needs to forge its own future, by creating a state tax system that rewards effort and removes barriers for businesses wanting to invest, to grow and create careers for South Australians.

Members interjecting:

The PRESIDENT: Order!

The Hon. G.E. GAGO: We have reduced government expenditure gradually and carefully, without impacting on the delivery of quality health and education, and that is why the state government is putting the long-term interest of the whole state first. We are creating a state tax system that will attract business to South Australia and reduce costs to business and, as I said, that is to encourage investment in our economy and to grow and create jobs. We believe it will provide lasting improvement to the South Australian economy and also encourage new businesses to grow and new careers for this state.

Of course, that is in addition to the $670 million in tax reductions that will be provided over the next four years. These tax changes will return almost $2.5 billion to businesses and the community, and that is in addition to the reforms we have made to WorkCover that have helped to reduce business costs to the tune of about $180 million per annum. So, overall, our $985 million stimulus package is about helping to encourage investment and stimulate growth and, in particular, jobs.