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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2015-10-27 Daily Xml
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Statutes Amendment and Repeal (Budget 2015) Bill

Second Reading

Adjourned debate on second reading.

Continued from 23 October 2015.

The Hon. G.A. KANDELAARS (15:47): I rise to support the Statutes Amendment Repeal (Budget 2015) Bill. This bill contains measures that form part of the government's budget initiative for 2015-16, and implements the outcomes of the State Tax Review. The changes the government is making in this bill will remove significant cost barriers to business investment and expansion and encourage the creation of new businesses in the state, which will provide lasting improvements to the South Australian economy.

These changes will reduce the harmful impact that inefficient taxes have on the economy, and are consistent with the views expressed by South Australians during the State Tax Review. In total, almost $670 million in tax relief will be provided over the next four years as part of this tax reform package, including ongoing relief of more than $268 million per annum from 2018-19. Over the next decade these changes will return almost $2.5 billion to businesses and the community. The tax reform measures are in line with the government's commitment to make South Australia the best place to do business and recognises that the state's tax system must not stand in the way of investment and job creation.

These tax reform measures build on the considerable other tax and related relief already introduced by the government. Businesses in South Australia already enjoy the most competitive payroll tax regime in the nation, as assessed by the Commonwealth Grants Commission, and the government's recent changes to WorkCover will deliver a reduction in business costs to South Australia of about $180 million per annum.

In addition to the legislative changes required to implement the outcomes of the state tax review, the bill also includes legislative amendments that will enable a new cost of living concession of up to $200 per annum per household for those eligible, which will commence from 1 July 2015; a new fee structure for probate matters with a reduction to the current fee structure for estates valued at less than $200,000; and the payment of royalties recovered by councils in South Australia for the benefit of all South Australians.

On the issue of the cost of living concessions, this bill amends the Rates and Land Tax Remission Act 1986 to provide a cost of living concession. A new cost of living concession of up to $200 per annum per household will be paid to eligible householders from 1 July 2015. The cost of living concession will replace the existing council rate concession of up to $190 per annum provided to pensioners, low income earners and specified self-funded retirees who are homeowners.

Eligibility for the new concession will be expanded to include pensioners and low income earners and specified self-funded retirees who are tenants. Expanding the criteria means an extra 45,000 households that are tenants will benefit from the new concession. Eligible pensioners and low-income earners who own their own homes will receive $200 per annum to put toward their greatest needs. Eligible pensioners and low-income earners who are tenants and eligible self-funded retirees who hold a commonwealth seniors health card will receive $100 per household.

On the issue of probate, the bill amends the Supreme Court Act 1935 to allow for a tiered fee structure for court fees in respect of probate matters. The new fee structure will be based on the value of the estate and will commence from 1 January 2016. The current fee of $1,088 will be reduced for estates of less than $200,000, and the highest fee will be $3,000 for estates valued over $1 million.

On the issue of royalties, the bill proposes to make a royalty payable on minerals recovered by councils in South Australia from their borrow pits at a royalty rate of 55¢ per tonne from 1 July 2015. This will replace the royalty exemption provided to councils and ensure the state receives royalties for those materials that are owned by the Crown in the right of the state of South Australia for the benefit of all South Australians.

I can advise the chamber that ongoing discussions are occurring between the government and the Local Government Association that are likely to see further amendments around this issue. I also advise that council borrow pits will continue to be regulated and controlled apart from the royalty payable under the provisions of the Local Government Act 1999. I commend this bill to the council.

Debate adjourned on motion of Hon. J.M. Gazzola.

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