House of Assembly - Fifty-Third Parliament, First Session (53-1)
2014-11-13 Daily Xml

Contents

Taxation Reform

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:17): My question is to the Premier. Can the Premier inform the house how his green paper on tax reform will differ from the report of the Economic and Finance Committee into the South Australian taxation system that was only handed down in this place earlier this year?

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:17): It will adopt a different process than was adopted by the parliamentary committee. It will seek to raise awareness in the broader South Australian community about the challenges that we face as a state and it will involve the broadest possible cross-section of the community in deliberation on what the taxation system should look like. So the process that we will adopt will be different.

The principles that we will seek to apply to the report will be the principles that we have already outlined, that is, that the sustainability of our revenue base will be front and centre in our considerations. At the moment, we have a tax system which is prone to quite volatile fluctuations, given the transactional nature of the taxation system that we have.

We will also be looking to have a taxation system that does not punish productive investment so it does not provide a disincentive to productive activity and, indeed, encourages productive investment in productive activity. Thirdly, it will reflect Labor's principles about a fair go, that is, making sure that the burden of adjustment falls fairly across the South Australian community.

It will also have in scope something which the parliamentary committee I don't think looked into in great detail, which is the use of user charges such as network charging for public transport and road infrastructure, something that we have raised in debate; in fact, it emerged during the course of the election campaign. While we have ruled out tolls, we haven't ruled out imaginative ways in which we could raise capital for the investment in public infrastructure. I think we also need to be clear that this particular exercise speaks in furtherance of our priority—our economic vision; our vision for South Australia—which is that South Australia is the place where people and business thrive. We say that—

Members interjecting:

The Hon. J.W. WEATHERILL: We use that vision—

Members interjecting:

The Hon. J.W. WEATHERILL: We use that vision advisedly, sir, because it speaks to both people and the livability of South Australia, and business and the prosperity of South Australia. It deliberately uses those twin objectives in that way because we believe that South Australia's future prosperity is inextricably linked to its livability. We believe that those two things must progress hand in hand. It not only reflects our analysis about the success of our state within this nation but it also reflects our values system. We are not going to sacrifice the livability of South Australia in order to achieve—

Members interjecting:

The Hon. J.W. WEATHERILL: —some narrow economic goal. Can I say this, Mr Speaker: much of what we enjoy in South Australia in terms of our livability has come about because of our public investments. Those public investments and that public consumption in South Australia is higher than exists in other states, but that is the reason we enjoy the level of amenity we do in this state. That is something that we should be proud of, not something that we should be trying to compare ourselves with other places and seek to shrink away from. So, we will have a system that delivers for our people but will also be a place which guarantees our future prosperity.

The SPEAKER: Before the leader asks a supplementary, I call the member for MacKillop to order for two bouts of forced laughter, and—

Mr Williams: I can't help it when we have got stand-up comedy like that, sir.

The SPEAKER: The member for MacKillop can leave us for the next half-hour under the sessional order.

Mr Williams: Can you make it longer, sir?

The SPEAKER: Yes, I will make it an hour; thank you.

Mr Williams: Thank you, sir; I am relieved.

The honourable member for MacKillop having withdrawn from the chamber:

The SPEAKER: The member for Unley is called to order; the member for Chaffey is warned a first time; the member for Morialta is warned a first time—Stalin did not have visions, he had five-year plans; Teresa of Avila had visions—the member for Heysen is warned a first time; the member for Hartley is warned a first time and a second time; and the member for Hammond is warned a second time, having accrued warnings before question time from the Deputy Speaker. Leader.