Statutes Amendment (Budget Measures) Bill

Second Reading

Adjourned debate on second reading.

(Continued from 28 September 2023.)

The Hon. H.M. GIROLAMO (15:47): I rise to speak on the budget measures bill, which has finally come to our house after initially passing the lower house in September, after being introduced on budget night in June. At a time when our community is in a cost-of-living crisis, this is a government of false hope. When the median house price in metro Adelaide is above $900,000, and a unit or apartment median price is over $465,000, the reduction of stamp duty threshold sitting at $650,000 leaves many young people disappointed. There is also the fact that the lack of indexation will only make this problem worse, as inevitably house prices rise.

Small businesses are also victims to the rising cost of doing business in this state, and the inflationary pressures that it brings. As we have seen during this week, they are not the government that supports small business in this state. Through the budget and its subsequent estimates committee processes we have learnt of blowouts across almost every department, and this government is denying access to key strategic project information to our Auditor-General. Almost every single department and government agency failed to meet its budget last financial year.

As we reach the halfway mark of this financial year, we will be updated in the Mid-Year Budget Review as to whether the discipline of the Treasurer and the government has managed to bring this budget under control. We call on this government to get on with doing their job, ensuring these strategic projects are built across our state. With the federal government now cancelling a number of infrastructure projects across the state, especially in regional South Australia, we call on the government to take responsibility and ensure these projects continue and road safety is front and centre.

With the cancelling of the Truro freight route and a number of road safety projects in the region, when the road toll in this state is extraordinarily high and the regions are over-represented in those statistics, it is a huge concern. We need to see more pushback and more support by this government. This is a government with distracted priorities. The Premier is happy to be seen with his sporting heroes at all his favourite sporting events, but those are the wrong priorities for South Australia.

This government told the electorate that it planned to fix ramping. Almost two years later ramping has doubled under this government, with the latest figures showing that in the month of October (last month) more than 3,322 hours were spent by ambulances ramped outside hospitals. They said that they had a plan. That was a false hope for our electorates. Here are the facts: Labor's latest ramping figures are worse than in any month during the former Liberal government's four years.

Labor has delivered the worst 17 months of ramping in SA history. Ramping has more than doubled when compared with the former Liberal government's last four months in office. Ramping was on a downward trajectory until the election in March 2022. The only difference between that time and now is that the Labor government won the election and has overseen the worst ramping in our history.

If this is the result of fixing the ramping crisis, it is clear South Australia deserves better than this Labor government. If it was not for the budget blowouts that the Treasurer and the Premier and their fellow ministers oversaw, we would have more money to plug the disappointment of the federal government's lack of commitment to regional freight routes in South Australia. If it was not for the budget blowouts, maybe we could put those funds towards actually fixing ramping.

Maybe, with some transparency from this government, and that includes the Auditor-General's office having access to what they require to do their job, things would be different. This is a government that is distracted and has the wrong priorities for those who live in South Australia and continue to be disappointed.

The Hon. T.A. FRANKS (15:52): I rise to make a brief contribution to the budget measures bill. A government budget in surplus more often than not is actually a community in deficit. How the government can brag about a surplus when we are in a cost-of-living crisis, a housing crisis and a health crisis is unusual. There is a lot more that the government could be and should be doing to better our state.

However, the Greens certainly wish to highlight one positive step that we believe this budget could make today. I will be moving an amendment to the Emergency Services Funding Act, which will require the minister, as soon as practicable, to undertake an audit of all CFS facilities in our state to ensure their safety, ensure the availability of resources and ensure the safety and dignity of all CFS members and volunteers.

Right across South Australia we rely on the incredible generosity and bravery of hardworking CFS volunteers, yet the CFS itself has been continually underfunded and undersupported by successive governments for far too long. The least our state and our parliament can do is ensure that we are treating our CFS volunteers with dignity and respect and that we are bringing their long-term health and safety to the fore while they keep us safe.

As we approach an extended period of likely hot, dry and dangerous fire conditions, the state government must urgently ensure an audit of all CFS facilities right across our state and then provide whatever funds and support are necessary to ensure that those CFS volunteers are not only supported but retained and our CFS is prepared for this very cruel summer ahead.

I hope to see support from all parties in this place for that measure. For those who put their lives on the line to protect us, to protect people and place, it really is the least that we can do.

The Hon. E.S. BOURKE (15:54): The 2023-24 budget is one that reflects the Malinauskas Labor government's key priorities. The budget shows that we are focused on working towards a more sustainable, more efficient health system that better meets the needs of our community; making home ownership more accessible to South Australians, reforming our rental laws and increasing our state supply of public housing as well as affordable housing; and taking action to relieve the cost-of-living pressures that people across our state are feeling.

The bill proposes to amend various legislation to facilitate the implementation of measures that we announced in the 2023-24 budget, as well as to make other administrative amendments, namely the bill proposes to amend the First Home and Housing Construction Grants Act 2000, the Land Tax Act 1936, the Stamp Duties Act 1923 and the Emergency Services Funding Act 1998.

Amendments to the First Home and Housing Construction Grants Act 2000 will increase the property value cap for eligibility for the $15,000 First Home Owner Grant. Currently, the grant is not payable if the property's market value exceeds $575,000. This amendment will increase that threshold, such that the grant is not payable if the market value of the property exceeds $650,000.

The bill proposes to amend the Land Tax Act 1936 to introduce a 50 per cent land tax discount for eligible new build-to-rent properties. The discount reduces the land value of the parcel of land being used as an eligible build-to-rent property by 50 per cent until the 2039-40 land tax year. The criteria for an eligible build-to-rent property includes that a minimum lease term of at least three years must be offered to tenants, which will support more secure agreements for tenants, a benefit this government is keenly focused on advancing through our policies around rental reform, as we have seen this week in parliament.

Further requirements to be deemed an eligible build-to-rent property can be outlined in regulations, including, but not limited to, the minimum number of build-to-rent dwellings or units within a property and requirements to support the development of new affordable housing in build-to-rent properties. Build-to-rent projects where construction commences from 1 July 2023 will be able to apply for this relief.

The reduction in land tax for eligible build-to-rent properties is designed to support the uptake of investments in residential rental housing, increasing the supply of housing and creating more opportunities for renters. Of note, I point out that the amendments are largely consistent with those included as part of the budget measures 2021 bill, which at the time were ultimately not passed by the parliament.

This bill provides stamp duty relief for eligible first-home buyers who enter into a contract to purchase a new home or vacant land to build a new home on or after 15 June 2023. No stamp duty will be payable on the purchase of an eligible new home valued up to $650,000, with relief phasing out for properties valued up to $700,000. For the purchase of vacant land on which new homes will be built, no stamp duty will be payable for vacant land valued up to $400,000, with relief phasing out for land valued up to $450,000.

HomeStart is introducing a new home loan product that enables eligible first-home builders building a home to take out a loan with a deposit of as little as 2 per cent. This represents a further improvement on Labor's election commitment of 3 per cent. When you consider these various initiatives together, you can see how we are working from multiple angles to make home ownership easier for more people in our community. It is assistance that first-home buyers in particular need at this moment, given the very challenging conditions of our current housing market.

Prospective first-home buyers will also benefit from an increase in housing supply facilitated by the single largest residential land release in South Australia, with 25,000 new blocks of land being made available. We are also implementing a fast-track approval process for eligible first-home buyers to make it easier for them to get into their first home sooner.

The 2023-24 budget is a responsible budget focused on strengthening our health system, increasing the supply of affordable and appropriate housing, and alleviating cost-of-living pressures for our community. The measures contained in this bill support the efforts of the Malinauskas Labor government to ensure that South Australia remains an attractive and desirable place to live, to work and to do business. I commend the bill to the chamber.

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (16:00): I thank honourable members for their contributions to this bill which gives effect to measures in the 2023 state budget. I am excited about what we delivered to the South Australian people through this year's budget, and I look forward to these measures coming into effect as soon as practicable.

I understand the Hon. Tammy Franks has filed amendments to the bill which seek to further amend the Emergency Services Funding Act 1998. Those amendments would have required money from the emergency services fund to conduct an audit of the facilities and resources available to each South Australian CFS brigade, and require a report to be laid before both houses of parliament detailing the findings.

Under the Emergency Services Funding Act 1998, resourcing for the provision of emergency services in South Australia, including the South Australian CFS, is reported to and considered by the Economic and Finance Committee of parliament as part of the annual emergency services levy rate-setting process. The government proposes that instead, in the process of reporting to the Economic and Finance Committee, the CFS undertake to provide to the committee an audit and assessment of their current resources and facilities. The committee members also have the opportunity to directly question the Chief Officer of the CFS at the committee hearing as well.

We understand that, under these assurances by the Treasurer, the Hon. Tammy Franks MLC has agreed not to proceed with the amendment. We think this process will deliver what the amendment is looking to achieve without necessarily requiring the use of emergency services funds. Should the member find this process insufficient, the government is prepared to continue to improve reporting in the context of the Economic and Finance Committee of parliament as part of the annual emergency services levy rate-setting process. We thank the Hon. Tammy Franks for her constructive consultation on this issue, and we fully acknowledge and understand that she is seeking to improve community outcomes.

Bill read a second time.

Committee Stage

In committee.

Clause 1.

The Hon. H.M. GIROLAMO: Can the minister advise if amendments to this bill are to be deemed as money bill amendments?

The CHAIR: The Hon. Ms Franks.

The Hon. T.A. FRANKS: I was going to direct a question to you, Chair, actually. Would you give the council advice as to how these amendments will be handled should they be moved? I indicate that I am not proceeding with these amendments, I am satisfied with the words of the government today, but I have previously amended budget bills to allocate money, particularly in the Gamblers Rehabilitation Fund, I believe, that was already allocated. They go as a request to the other place, so while this house cannot initiate a money bill, we can request amendments—very politely or very forcefully—to those bills.

The CHAIR: So you are happy with that?

The Hon. H.M. GIROLAMO: Yes.

Clause passed.

Clause 2 passed.

Remaining clauses (3 to 8) and title passed.

Bill reported without amendment.

Third Reading

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (16:05): I move:

That this bill be now read a third time.

Bill read a third time and passed.