Goods and Services Tax

The Hon. R.I. LUCAS (14:22): This is what might be my final question to the minister, the Leader of the Government, and it is a simple one.

An honourable member: Are you going?

Members interjecting:

The PRESIDENT: Where are you going, Mr Lucas? Are you going to give a farewell speech?

The Hon. R.I. LUCAS: It's a simple one.

The PRESIDENT: We will have to set time apart for it. The Hon. Mr Lucas.

The Hon. R.I. LUCAS: It is a simple one: is it state government policy to support an increase in the GST from 10 per cent to 15 per cent?

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) (14:22): The Premier has made it very clear—very clear—that this state government does support an increase in the GST. He has looked at a range, he is happy to consider a range of measures. What we understand is that, clearly, there is inadequate commonwealth funding available for our health system and our education system.

We're being shortcut; cuts are being made to our budgets every single year. We see in the last budget huge, savage cuts made to South Australia from the federal government in terms of education and training—I've talked about the massive federal cuts to our training budgets. So, we know that, particularly, our health system is exponentially demanding more money.

South Australia understands that the federal government needs to consider ways of being able to fund healthcare services and the like into the future, and that's why we've indicated our support to look at new sources of revenue, and one of those is looking at an increase in the GST. Other options, of course, are an increased Medicare levy, and there are a range of other tax levers available to the federal government.

I believe that we have indicated that we are prepared to look at a range of different options, but at the moment the Premier has made it very clear that he believes that at this point in time an increase in the GST is probably going to be the fairest. He has outlined significant caveats to that in relation to protecting our most disadvantaged Australians and obviously details around making sure we do protect those who can ill afford any increase, not only in GST, so that any form of taxation or fees or levies are compensated for.