Land Tax

The Hon. F. PANGALLO (14:43): Has the Treasurer or the Premier been contacted by prominent Liberal Party supporters and backers expressing their concern about what is being proposed?

The Hon. R.I. LUCAS (Treasurer) (14:44): About what?

The Hon. F. PANGALLO: Have the Premier and the Treasurer been contacted by prominent Liberal Party supporters and backers about the proposed land tax aggregation, expressing their concerns at the damage it will do to the state's economy?

The Hon. R.I. LUCAS: I was previously congratulating the Hon. Mr Pangallo on some excellent questions, but I am not sure where he has been over the last four weeks if he is having to ask me that particular question. I think in the first few days the Property Council publicly indicated, and it was reported widely in the media, that prominent Liberal backers and supporters, people who had funded the Liberal Party campaign, had expressed very strong opposition right from the word go.

As the Premier and I have indicated, this government is about making good decisions in relation to the interests of the South Australian economy overall. We are not dictated to by the people who donate to our campaigns or don't donate to our campaigns. We make judgements that we believe to be in the best interests of the future development of the South Australian economy, balancing our budget and a whole variety of other issues as well.

It may well be that others are dictated to by the size of the donations made to them by individuals or others but, ultimately, that is not the way to run a government. Ultimately, you have to make judgements on the basis of what you believe to be right. I am surprised at the honourable member's question, if he wants to ask that question. I think right from the word go there has been an indication that prominent supporters, donors, funders and former friends of mine have strongly opposed the reform package that the government has outlined.

We have indicated, I have indicated and again I repeat that the intent of the reform package is to collect less land tax by increasing the threshold and reducing the top rate so that we have a much more competitive land tax regime in South Australia. I can only repeat: if in the end it is more than $40 million, then there will be much more than the $50 million to $60 million that we are currently projecting over the forward estimates to be returned by way of increasing thresholds and lowering the top rate of the land tax in South Australia.