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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2016-07-26 Daily Xml
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South Australian Economy

Mr PICTON (Kaurna) (14:41): My question is to the Treasurer. Can the Treasurer update the house on recent economic reports on South Australia's economic prospects?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:41): I thank the member for his question because recent reports give rise to some cautious optimism for South Australia. Our economy is facing unprecedented challenges as a result of the global decline in mineral commodity prices, gaps in naval shipbuilding and the closure of the Australian car manufacturing industry, but despite these challenges there are a number of positive signs. The ANZ/Property Council observes:

...a strong positive move in sentiment [business confidence and conditions] in South Australia. There is a clear correlation between this improvement in outlook in South Australia and the aggressive approach of the Weatherill Government in lowering property taxes.

These are the tax cuts that the Leader of the Opposition opposed, stating they would not create a single job and they called on us to bring them forward. Our nation's leading tax reform is the most comprehensive package in our state's history which sees us abolishing business stamp duties, returning $670 million to businesses and families, making South Australia the most attractive state in which to do business.

Mr Marshall interjecting:

The Hon. A. KOUTSANTONIS: I will tell the family business groups about what the Leader of the Opposition is saying about these tax cuts. On top of our WorkCover reforms, which have delivered over $180 million of annual savings to businesses, it has resulted in 6,900 additional jobs in the past 12 months to June 2016. The KPMG Competitive Alternatives report in 2016 ranked Adelaide as the most competitive city surveyed in Australia, ahead of Melbourne, Sydney and Brisbane.

ANZ's latest Stateometer says that South Australia has picked up steam and is expanding. The SA Centre for Economic Studies expects respectable growth for the South Australian economy, supported by improvements in business investment, strong performances in agriculture, agrifood and service exports. The latest CommSec State of the States report, which the opposition were very quiet on yesterday, shows signs of growth in the South Australian economy and has South Australia rising two positions to fifth place, despite the Leader of the Opposition saying we were destined for last.

Our unemployment rate is unacceptably high and there is much more work to be done, particularly as the closure of Holden approaches, but the CommSec report also shows other green shoots and reasons why we should remain cautiously optimistic. CommSec notes the South Australian job market has improved in the past year and, in particular, in the past quarter.

Mr Knoll interjecting:

The Hon. A. KOUTSANTONIS: I note the member for Schubert tweeting about the impressive unemployment rates in his own seat of the Barossa. You're welcome. Retail turnover has risen for seven consecutive quarters in South Australia, and improved retail spending could help the state climb further in economic performance rankings.

As of May, trend dwelling approvals have risen for five consecutive months and are 23 per cent higher than a year earlier. In addition, the number of housing finance commitments by owner-occupiers rose for the 12th consecutive month in May. South Australia's state final demand in the March quarter was 1 per cent higher than a year earlier above the national growth of 0.8 per cent in trend terms—green shoots, as I have said.

We are transitioning away from traditional manufacturing to an economy based on advanced manufacturing and other high value-adding industries. Last year's budget cut taxes, making us the lowest taxing state in Australia for business, and this budget provides strong stimulus to go out and employ new South Australians. We have extended the payroll tax rebate and are offering businesses with payrolls of under $5 million incentives to hire new South Australians. These measures, along with defence projects, will help grow our economy. It's about time they stopped whingeing and came up with an alternative.

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