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House of Assembly - Fifty-Fourth Parliament, First Session (54-1)
2018-10-17 Daily Xml
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Goods and Services Tax

Mr McBRIDE (MacKillop) (14:37): My question is to the Premier. Can the Premier inform the house about how the recent federal government's announcement on GST impacts South Australia?

The Hon. S.S. MARSHALL (Dunstan—Premier) (14:38): I thank the member for MacKillop for his question. He, like many people in South Australia, was probably a little bit nervous when we came to government about what was going to happen with the GST going forward. The federal government had commissioned a Productivity Commission report into the GST distribution, and it's fair to say that the recommendations in that Australian Productivity Commission report were very worrying for the people of South Australia.

I am pleased to report today and update the house that since coming to government the Treasurer, the Hon. Rob Lucas, has worked extraordinarily effectively with the Coalition and with the Treasurer of Australia—both the Hon. Scott Morrison and the Hon. Josh Frydenberg—in recent days on this deal. It's a complex deal because there are winners and there are losers when it comes to GST distribution.

The good news is that the negotiation, which was hammered out between the federal and state treasurers, had a guarantee embedded into it that no state would end up worse off. This is a massive win for the people of South Australia. We made it very clear that we wouldn't be supporting anything that set South Australia back. We argued that we wouldn't be supporting any legislation, any new model for GST distribution that disadvantaged the people of South Australia.

We stuck to our guns. I think that the Treasurer conducted the negotiations on behalf of the people of South Australia extraordinarily effectively, and we have ended up with a very good deal. We are very grateful to the Coalition, to the Prime Minister and to the Treasurer for this deal, which I think now puts a new model in place—a fairer model—for all states and, importantly, a guarantee that South Australia doesn't go backwards.

I know this is very important for the people of South Australia because we have a very significant forward estimate of GST revenue to the state that we needed to make sure we protected. Importantly, what has been built into the model is an increase in the GST distribution to South Australia. Unlike those opposite, this has been achieved without arguing for a massive hit to the pockets of ordinary South Australians.

I think everybody in South Australia drew breath when the former government decided to argue, and then indeed lobby the other premiers and treasurers around Australia, for a massive increase in the GST—a 50 per cent increase in the GST—taking our GST cost up from 10 per cent to 15 per cent. This would have been a massive hit to every single household budget and every single business in our state and, quite frankly, would have massively slowed the Australian economy. I am very pleased that that was defeated.

We as an opposition stood up and said, 'No, we don't want higher taxes. In fact, we will lobby every day that we are in government for lower taxes,' and that is precisely what we have been able to deliver since coming to government. We are very pleased to be the government that has halved the emergency services levy hit to households, in effect reversing the decision of the former treasurer in his first budget after the 2014 election to massively increase—a $360 million increase—taxes. We are very proud to be the party that will be implementing on 1 January a massive reduction in payroll tax here in South Australia. Those opposite always argue, 'Where are you going to find the money?' Well, let me tell you.

Ms Cook: Housing Trust rent.

The Hon. S.S. MARSHALL: Let me tell you what has happened.

The Hon. S.C. Mullighan: Service SA closures.

The Hon. S.S. MARSHALL: There has been a massive rebound in confidence in the South Australian economy. This is only good for receipts going forward, and every day that we are in here we will be doing everything we can to stimulate economic activity and to create jobs in our state.

The SPEAKER: The member for Hurtle Vale and the member for Lee are warned. The member for Lee has the call.

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