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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2025-02-06 Daily Xml
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Statutes Amendment (Budget Measures) Bill

Second Reading

Adjourned debate on second reading.

(Continued from 4 February 2025.)

The Hon. R.B. MARTIN (17:17): It is a pleasure to speak to the budget measures bill, which highlights elements of the Malinauskas Labor government's 2024-25 state budget. The South Australian community is facing some complex and significant challenges and pressures, as are our communities in jurisdictions around the nation and, indeed, around the world.

I am proud to speak today about some of the ways in which our government is responding to those challenges, working through this budget and through a broad range of other policy and legislative efforts to forge a path for the South Australian community that leads us to a better future. This budget maintains the Malinauskas government's promise of no new taxes, and most fees and charges have been indexed by 3 per cent, ensuring that increases are well below inflation.

A keen area of focus for the budget is housing. Amidst a housing market that continues to present challenges, the budget provides a record $843.6 million for housing to build more houses, and is aimed at measures to improve affordability. Notably, stamp duty has been completely abolished for all eligible first-home buyers who build or buy a new home, regardless of the property's purchase price. This means that an eligible first-home buyer who buys a newly constructed home with a house price of $750,000 stands to receive more than $50,000 in both stamp duty relief and the First Home Owner Grant of $15,000. That is a significant amount of support for a cohort of South Australians who deserve assistance in seeking the opportunity to own a home.

Another focus of the budget is jobs. In the crucial area of skills, the budget provides an additional $692 million over five years, representing a 43 per cent increase in skills funding, to ensure South Australians get the skills they need for the jobs that are being created across our state's economy. This includes $275.6 million for more than 160,000 training places in key areas, such as defence, health, building and construction, early childhood education, clean energy transition and ICT, and a further $56.2 million to help more students complete their training.

I am glad to assure South Australians that our budget position is strong. Indeed, we now know that the Malinauskas government has delivered its second budget surplus, with the final budget outcome outlining a surplus of $413 million for the 2023-24 financial year. This is $107 million higher than projected at last June, following stronger revenues from the property market and a more buoyant economy, and after three deficits under the previous government, despite our significant program of investments across a range of policy areas including generational investment in our health system.

The budget includes $25.6 billion in infrastructure funding over four years, with $7 billion across the forward estimates for the north-south corridor—River Torrens to Darlington project—and $1.7 billion for the new Women's and Children's Hospital.

The 2024-25 state budget delivers a lot of good for our community and it does so in a manner that is fiscally sustainable. I commend the bill to the chamber.

The Hon. D.G.E. HOOD (17:20): I rise to speak on the budget measures bill. As the Deputy Leader of the Opposition in this place stated in her second reading contribution, it is disappointing that the state Labor government has demonstrated a propensity for overspending, as we have seen in this budget, with South Australia facing a looming debt of some—I will say it slowly—$46 billion in just two years. It is proving that Labor, once again, is incapable of responsible fiscal management, which is what South Australians desperately need and deserve.

Indeed, in recent times, residents of our state have been grappling with the mounting cost-of-living pressures, as all of us know and understand. But they are also facing increased crime rates according to the latest police data, and a healthcare system that is in—you could use the word 'crisis'; it would not be unreasonable. There is unprecedented ambulance ramping, which is a statistical fact, soaring business costs and, of course, a severe housing shortage. In fact, it is estimated that the average South Australian family now is around $20,000 worse off than they were at the last election. The opposition will therefore continue to call upon the government to implement measures that will have a real impact on the financial situation that South Australian households and businesses face.

The Liberals are committed to keeping the dream of home ownership alive in our state. It is unfortunately becoming increasingly out of reach, especially for the younger generation of South Australians. The government's abolition of stamp duty for all first-home buyers purchasing or building a new home is certainly a positive step and we agree with them on that, and indeed we go so far as commending them for it. It is good, sound policy.

But we believe as an opposition that much more can be done, and that is why we are going the extra step of calling for a $10,000 reduction in stamp duty for first-home buyers purchasing an existing home—so not just new homes but also existing homes—up to the value of $750,000. This would provide relief for countless more aspiring home owners. We look forward to taking these policies to the next election if the government refuses to implement them as part of their platform.

As noted by the opposition's lead speaker on this bill, payroll tax is another issue that needs attention. In fact, it has risen by some 33 per cent in this financial year's budget, which equates to an increase of the extraordinary number of $483 million per year since Labor was elected in 2022. The Liberal opposition has been calling on the government to lift the payroll tax threshold from the current $1.5 million to a new proposed threshold of $2.1 million, and will continue to do so.

Payroll tax is a significant financial burden on our small businesses that is severely impeding their ability to remain profitable. By raising the payroll tax threshold—as, of course, the Liberal party did when we were last in government—we can give small businesses the best possible chance to survive, expand and create more job opportunities.

As we all know, small businesses make up 98 per cent of all businesses in our state and employ around 300,000 South Australians, or 40 per cent of the total workforce. Given that South Australia has already had the highest unemployment rate in the country, we cannot afford to see these businesses continue to struggle—or worse, cease operating. Of particular concern in terms of taxation in this regard is the GP payroll tax, which will inevitably inhibit accessibility to GP services and put further strain on our already overstretched emergency departments in South Australia.

In addition to these initiatives, the Liberals have been calling for payroll tax exemptions for apprentices and trainees. South Australia is currently facing critical skills shortages in more than 350 occupations according to the 2023 Skills Priority List. Furthermore, a survey by the Australian Chamber of Commerce and Industry found that 75 per cent of businesses consider payroll tax as a barrier to hiring young workers. We need to listen to the plight of small business owners and abolish payroll tax completely for apprentices and trainees to encourage businesses to take on new employees. That is our position.

This government has proven itself to be high taxing and high spending. Despite this, South Australia has the highest unemployment rate in the nation, growing state debt—extraordinarily high state debt; unprecedentedly high, in fact—some of the most expensive energy prices in the country, and sometimes the most expensive, and a failing health system. Our state taxpayers deserve a government they can trust to distribute funds in a manner that aligns with the priorities of the average South Australian. As it stands, this is certainly not the case at the moment.

There is so much more that I could talk about, but I wanted to merely touch on some of the key issues. I could talk about the need to release more land. The government has made steps in this direction. We will give them credit where credit is due, but it has been a trickle, not the large-scale release that is required. The building industry is saying this loud and clear from the sideline: they want more land and they want it now.

There is a need to slash red tape in this state. It has become onerous particularly for small businesses that do not have the resources to cope with the filling out of forms and dotting the i's and crossing the t's that are required. This is something that we would urge the government to focus on. It is certainly something that a Liberal government would focus on.

The other thing, which is the elephant in the room I think for all of us, indeed not just in South Australia but right across our nation, although it certainly is a significant problem in South Australia as well, is to seriously tackle energy prices. The hydrogen dream that has been centred around Whyalla appears to be slowly coming apart at the seams. No-one wants that, of course. That is not what we want for our state, but we need a solution to the ludicrously high energy prices that we face. This is something that we must focus on as a parliament. We urge the government to draw their attention to this most important matter. It hurts businesses. It hurts households. Nobody wins. With those few words, I conclude my remarks.

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector, Special Minister of State) (17:26): I thank all members for their contributions and look forward to the committee stage.

Bill read a second time.

Committee Stage

In committee.

Clause 1.

The Hon. C. BONAROS: For the benefit of members, I will not be progressing my amendment to this bill. I have had some conversations now with the relevant minister. I think the message has been well and truly received, and we have agreed in terms of the process for how we go about these and other measures. As such, I indicate I will not be progressing this amendment.

Clause passed.

Clause 2.

The Hon. F. PANGALLO: I move:

Amendment No 1 [Pangallo–1]—

Page 3, after line 2 [clause 2(2)]—After paragraph (a) insert:

(ab) section 4A;

This is essentially an amendment to make the operation of my amendment to extend the stamp duty exemptions to existing homes to the date of 6 June 2024.

The Hon. K.J. MAHER: I thank the honourable member for his amendment. He spoke in great detail about why he is putting it forward, I know, during the second reading stage. I indicate that the government will not be supporting the amendment. We understand why the honourable member is moving it but in the government's view and policy it is our intention that the current scope of eligibility for the First Home Owner Grant and first-home stamp duty relief is limited to the purchase of a new home and vacant land on which a new home is to be built.

This policy reflects the government's intention to support the construction of new homes to increase supply in the housing market and this would not aid in that particular policy aim. The proposal would also, I am advised, significantly erode the budget position and the government's capacity to pursue other strategic economic priorities. I am advised the proposed extension would cost in the order of $190 million a year by the end of the forward estimates, reflecting the provision of relief to an estimated additional 4,000 first-home transactions per annum. The government will not be supporting the amendment.

The Hon. H.M. GIROLAMO: As indicated in my second reading speech, we will not be supporting the amendment.

Amendment negatived.

The CHAIR: The Hon. Mr Pangallo, you have another amendment at clause 2. Do you wish to progress that?

The Hon. F. PANGALLO: I gather it will be consequential, but can I just use the opportunity here to acknowledge an error I made the other day where I whacked into the opposition. We were looking at media reports from six months ago where the former opposition leader was saying that his government would provide stamp duty relief to first-home buyers on existing dwellings but those reports did not go into the particulars of that. I now acknowledge that that amount is actually capped at $10,000. I will say it is a miserly $10,000 but it is better than nothing, I guess, and is still not going far enough. I still would have expected the opposition to support my amendments for full relief.

The Hon. K.J. MAHER: 'I was wrong and so were you.'

The Hon. F. PANGALLO: I am happy to admit that, Attorney.

Clause passed.

Clauses 3 and 4 passed.

New clause 4A.

The Hon. F. PANGALLO: I move:

Amendment No 3 [Pangallo–1]—

Page 3, after line 36—After clause 4 insert:

4A—Amendment of section 18—Amount of first home owner grant

(1) Section 18(1)(b)(i)—after subsubparagraph (B) insert:

and

(C) if the commencement date of the eligible transaction is on or after 6 June 2024—$15,000;

(2) Section 18(4a)—after '2014' insert 'but before 6 June 2024'

This amends section 18 of the act to extend eligibility for the $15,000 grant to first-home buyers purchasing existing homes after 6 June 2024. Again, I am at a loss to explain why it has not been extended to existing purchases and perhaps the Attorney can explain that.

The Hon. K.J. MAHER: I reiterate the brief contribution that I made in relation to the honourable member's first amendment: in the government's view, part of the policy the government put forward is an intention to increase supply in the housing market by incentivising the construction of new homes.

Suggested new clause negatived.

Clauses 5 to 10 passed.

Clause 11.

The Hon. F. PANGALLO: It is obvious they are not going to get up, so I will not be moving any further amendments.

Clause passed.

Remaining clause (12) and title passed.

Bill reported without amendment.

Third Reading

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector, Special Minister of State) (17:36): I move:

That this bill be now read a third time.

Bill read a third time and passed.

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