Business Investment

The Hon. D.W. RIDGWAY (14:37): My question is to the Treasurer. Can the Treasurer please outline the recent figures on business investment in South Australia?

The Hon. R.I. LUCAS (Treasurer) (14:37): As I have raised on a number of previous occasions, confidence in the business sector in South Australia is critical in terms of post-COVID economic recovery. Therefore, it was imperative that businesspeople had confidence in the future firstly to invest and secondly to start creating jobs by employing more South Australians. So I was very pleased to see the release—I think it was today, this morning—of the new figures on new business investment: private new capital expenditure for the March quarter of 2021 released by the Australian Bureau of Statistics.

I am sure all members will be jumping up and down with joy at the fact that South Australia's business investment figures for the March quarter compared with 12 months ago, so year on year, led the nation comprehensively with a 21 per cent increase in real private new capital expenditure in the business sector here in South Australia. The Australian figure was 0.8 per cent—so a 21 per cent increase in business investment here in South Australia this quarter compared with the same quarter last year. The national figure was 0.8 per cent. The Queensland Labor government investment went backwards by 13.2 per cent.

The Hon. D.W. Ridgway: How much?

The Hon. R.I. LUCAS: By 13.2 per cent. The Victorian Labor government went backwards by 8.4 per cent—so a very significant lift in real private new capital expenditure in South Australia. I am sure all members, whatever their political flavour in this chamber, would be jumping up and down—

The Hon. R.P. Wortley interjecting:

The Hon. R.I. LUCAS: —and I am pleased to hear the Hon. Mr Wortley agreeing with that—

The PRESIDENT: Order!

The Hon. R.I. LUCAS: —and that he is delighted with these particular results. The most recent quarter, March quarter on December quarter, again shows South Australia's figure led the nation—that is, an 11 per cent increase for the March quarter compared to the December quarter. The big lift, in terms of capital expenditure, was on buildings and structures—up 25 per cent—but also in the critical area of equipment, plant and machinery—up 16 per cent.

In concluding, I must also say that I know from discussions with business people that the commonwealth government policies in recent times—extended in the most recent federal budget to allow instant tax write-offs for new investment—had been an important part of encouraging, nationally (it doesn't explain the regional differences), in terms of private capital expenditure or business investment. We would hope, as a result of the federal budget, that in the June quarter we may well see, nationally, significant increases as well.