House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2015-07-02 Daily Xml

Contents

Goods and Services Tax

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:32): My question is to the Treasurer. Given the government's persistent push for the GST base to be expanded to include financial services, is the Treasurer able to inform the house whether the government wants bank account deposits and withdrawal transactions to attract the GST?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (14:33): That would require an amendment in the commonwealth parliament and we have no control over that. We have not advocated that.

Mr Marshall: So you're pushing that?

The Hon. A. KOUTSANTONIS: We are not pushing that. The only people who are advocating changes to the GST are our political opponents, not us. We think that the GST is a regressive tax. We do not think it should be extended to food, health or education, but I do believe—

Mr Gardner interjecting:

The SPEAKER: The member for Morialta is warned for the second and final time.

The Hon. A. KOUTSANTONIS: Members opposite have always called on us to work with the commonwealth government, and there is a commonwealth government white paper on taxation reform that has been released. Now, the government has just embarked on what is wholesale tax reform in this state. We have released a discussion paper and we responded in the budget with a comprehensive tax reform package, which has been welcomed by business and welcomed by industry and it is quite a stimulus for the South Australian economy.

We are keen to work with the commonwealth government to make sure that, now that we are getting our house in order, we can go to the commonwealth government with a clean slate and say that we are here to assist. We are not here to be—

Ms Sanderson interjecting:

The SPEAKER: The member for Adelaide is on the precipice.

The Hon. A. KOUTSANTONIS: —disruptive in this process. We want to work with the commonwealth government with its tax reform paper. We hope that it has some courage with its tax reform process. Indeed, I have had discussions with Treasurer Hockey about payroll tax, and other state treasurers have also indicated their willingness to discuss and research whether or not we want to have a national scheme for payroll tax or, indeed, adopt the Henry review position on payroll tax which is some form of turnover tax rather than one on payroll. These are all things being canvassed by the white paper, and the white paper does look at GST.

Of course, the Prime Minister has been steadfast. He has said that if the states want changes to the GST they need to come to the commonwealth government with a proposal. What we say is you can't cut funding to the states, get us on our knees, and have us come to you on our knees with our hands out saying, 'Please increase the GST.' We won't do that. That will not work. That is not a way to run a collaborative federation. The way we want it to work is to work through the white paper process, the green paper process, through COAG and through the premiers' and Prime Minister's retreat—working together for a collaborative outcome. That is what we want to see.

This sort of gotcha politics—do you want a GST on this or do you want a GST on that—serves no purpose. It serves absolutely no purpose. I say to members opposite—

Mr Tarzia interjecting:

The SPEAKER: The member for Hartley is warned for the second and final time.

The Hon. A. KOUTSANTONIS: —put out a response about what taxes they want changed. Put out a response about what they want done with the GST. Tell us what your views on the GST are.

Ms CHAPMAN: Point of order, Mr Speaker. I am sure you, Mr Speaker, are quite capable of telling the government what you want on tax reform, but this was a very simple question—

The SPEAKER: Yes, I think we've got that. Treasurer.

The Hon. A. KOUTSANTONIS: I think it is incumbent on all parties who ask questions about taxation reform to also put out an alternative.

Mr Marshall: No, it's not.

The Hon. A. KOUTSANTONIS: 'No, it's not.' The Leader of the Opposition says it's not important for the opposition to put out an alternative tax policy. There you go—no policy on oil and gas, no policy on health, no policy on public transport and, now, no policy on taxation.