Ms. Davies questions the timing of tax reform in WA, given the current economic climate. The Treasurer defends the government's financial management, citing global economic instability and prioritising debt reduction and investment in essential services.

AnsweredQoN 514Legislative Assembly
Asked
14 September 2021
Portfolio
Treasurer

QuestionView source ↗

TAX
REFORM
514. Ms M.J. DAVIES to the Treasurer:
I have a supplementary question.
The SPEAKER : Order! Of
course, a supplementary is just a brief question.
Ms M.J. DAVIES : Thank you,
Madam Speaker, for the guidance.
If tax reform cannot be undertaken
during buoyant economic times, when is the right time, and can we assume that
there will be no tax reform by this government over the next four years?

AnswerView source ↗

We
are in the middle of a global pandemic. Governments all over the world are in
terrible financial positions; we are one government in the whole world that is
not. Members may recall that during the election campaign, Standard and Poor's,
fortuitously, released a report showing that our financial position as a subnational
jurisdiction was amongst the best in the
entire world. Funnily enough, WA and North Rhine–Westphalia in Germany
had the two best budgets in the entire world. That is a good position to
be in. It allows to us fund things like COVID-19 relief, a massive
infrastructure program, a women's and babies' hospital, a desalination
plant, the biggest infrastructure program ever seen in regional WA, and massive
investment in new health funding. It allows us to do that without racking up deficit and debt. It is economics 101. What do
we do? Does the Leader of the Opposition want us to rack up deficit and
debt or continue on the financial pathway that we are on, which is to pay down
debt this year and very carefully manage the state's finances across
the forward estimates?
Threats to the state are coming
from everywhere. The New South Wales government is one. COVID coming in is
another, which is also related to the New South Wales government. The iron ore
price—which declined, I think, $5 or
$7 last night—has come down to $US120 in the last three months. That is
another threat to the state. Not giving away our revenue base is
important for us not getting into a deficit and debt position that other
governments around Australia and the world
are in. That is our position. I remind the Leader of the Opposition that when
she was in office , her government, with record revenues, put up taxes
one after another.

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