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Legislative Council - Fifty-Fourth Parliament, Second Session (54-2)
2020-07-01 Daily Xml
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Goods and Services Tax

The Hon. D.G.E. HOOD (14:36): My question is to the Treasurer. Has the government expressed any view on interstate proposals to increase the rate of the GST or broaden its base?

The Hon. R.I. LUCAS (Treasurer) (14:36): Too right, we have. Prior to the last election, the Premier and myself made a firm promise to the people of South Australia that should we be elected, we would not support an increase in the rate of the GST, and we would not support a broadening of the base of the GST.

I have been asked that question on a number of occasions both in this chamber I think, but also publicly since the election, and I have indicated that that was a promise that the Premier and the Liberal Party made in opposition, and we would keep that promise in government as we have kept virtually all of the other promises we have made to the people of South Australia. Whilst there continue to be suggestions—

Members interjecting:

The PRESIDENT: Order!

The Hon. R.I. LUCAS: —that the rate of the GST should be increased—

Members interjecting:

The PRESIDENT: Order!

The Hon. R.I. LUCAS: —or that the base should be broadened—

The Hon. E.S. Bourke: You don't have a privatisation agenda.

The PRESIDENT: The Hon. Ms Bourke!

The Hon. I.K. Hunter: Women's and Children's Hospital.

The PRESIDENT: The Hon. Mr Hunter!

The Hon. R.I. LUCAS: —we have continued to indicate that we are not going to go down that particular path. The Marshall Liberal government was elected on a platform of reducing—

Members interjecting:

The PRESIDENT: Order!

The Hon. R.I. LUCAS: —state taxes and we have abolished the payroll tax for all small businesses in South Australia. There has been a $90 million cut in the ESL bill from the exorbitant rates charged by the former government—

The Hon. E.S. Bourke interjecting:

The PRESIDENT: The Hon. Ms Bourke!

The Hon. R.I. LUCAS: There's a $189 million cut in land tax—

The Hon. K.J. Maher: Do you know what your nickname is in the Premier's office?

The PRESIDENT: The honourable Leader of the Opposition!

The Hon. R.I. LUCAS: —over the next three years it's been instituted. We've continued the reduction in stamp duty that was commenced by the former Labor government in relation to commercial property transactions. So in all those areas we have continued to demonstrate a commitment to lowering the cost of doing business in the state and lowering costs for households.

The cherry on top of the cake is today we celebrate the first day of massive cuts in household water bills: $200 for the average household, and for those households who at some stage in the past or present have been afflicted with four teenage children wanting to spend three hours each in a shower using copious quantities of water, the high water users would save around $400 to $500 a year in terms of household water bills.

An honourable member: How much was that again?

The Hon. R.I. LUCAS: It is $400 to $500 a year for high water consumption households. Finally, for those businesses in South Australia that are struggling as a result of the COVID-19 pandemic, on average, savings of $1,350 but some businesses in South Australia (or one or two) it is up to a maximum saving of almost a million dollars in water bills to that particular business. There are some with savings of hundreds of thousands and some of tens of thousands of dollars.

I think the Premier might have been at Bickford's yesterday and I think I saw quoted that their projected saving was of the order of $30,000 or $50,000 a year. These are massive savings for businesses which will allow them to employ more South Australians at a time when the COVID-19 pandemic is causing significant unemployment and under-employment.

The nail in the cross of the Labor Party in relation to the cost of doing business was their outrageous behaviour in relation to ratcheting up water prices in South Australia by artificially inflating the value of the regulated asset base. We have a former water minister in this chamber with a big smile on his face because he understood what was being done by the former Labor government. The current shadow treasurer's grubby fingerprints are all over that particular decision, as evidence was given to the Budget and Finance Committee. The evidence was tabled.

The Hon. I.K. Hunter interjecting:

The PRESIDENT: The Hon. Mr Hunter!

The Hon. R.I. LUCAS: The grubby fingerprints of the member for Lee—

The Hon. I.K. Hunter interjecting:

The PRESIDENT: The Hon. Mr Hunter!

The Hon. R.I. LUCAS: —are all over that particular decision.

Members interjecting:

The PRESIDENT: Order!

The Hon. I.K. Hunter interjecting:

The PRESIDENT: The Hon. Mr Hunter!

The Hon. R.I. LUCAS: He and the Labor Party will be reminded of that grubby decision—

The Hon. I.K. Hunter interjecting:

The PRESIDENT: The Hon. Mr Hunter!

The Hon. R.I. LUCAS: —all the way from here through to March 2022.

Members interjecting:

The PRESIDENT: Order!

The Hon. E.S. Bourke interjecting:

The PRESIDENT: Order, the Hon. Ms Bourke! The Hon. Mr Pangallo.

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