Mr. Redman questions whether a payroll tax increase funds Metronet cost overruns. The Treasurer denies this, defends the tax increase as part of fiscal repair, and criticizes the previous government's spending.

AnsweredQoN 588Legislative Assembly
Asked
1 November 2017
Portfolio
Treasurer

QuestionView source ↗

PAYROLL
TAX
588. Mr D.T. REDMAN to the
Treasurer:
I refer to the government's
$200 million cost blowout over its extravagant Metronet commitment. Is the
government's payroll tax increase simply cover to fund its uncosted
election commitments?

AnswerView source ↗

No, is the answer.
Mr
P.C. Tinley interjected.
The SPEAKER : Minister for
Housing, I call you to order for the first time.
Mr
D.T. Redman : I was hoping for a bit more than that, Mr Speaker!
Mr
B.S. WYATT : Do not worry; I will give you some more.
Mr
D.T. Redman interjected.
Mr
B.S. WYATT : No, is the simple answer to the reason for our payroll tax
increase—our short-term payroll tax increase. I am not sure about the
first part of the member's question around the $200 million blowout to
Metronet but, in any event, I will let him ask the transport minister that in
due course.
I want to highlight why it is
important to look at the two revenue decisions we made in the budget, first,
around the gold royalty that the Liberal and National Parties will wear the
consequences for in due course and, secondly, around payroll. I am pleased that
support has been indicated from the Liberal Party for our payroll tax levy.
I want to highlight again from
yesterday's S&P Global decision to keep our credit rating as is. I quote

We could revise the outlook to stable
if we perceive that the government remains highly committed to improving its
budgetary performance � This commitment would be demonstrated by its spending
and revenue policies and their successful implementation �
Dr
M.D. Nahan : Spending?
Mr
B.S. WYATT : Yes. Guess what we have done in spending? Thank you for that
interjection. What I do not get to do as Treasurer is what the Leader of the
Opposition did. In the former government's first year, what did it do
with spending? It had a 13.5 per cent increase. I do not get the right to come
in here and just layer across the top of the former government's fiscal
wreckage another layer of spending. That is why I have gone through and
reprioritised. That is why we are keeping spending low in a way that the Leader
of the Opposition could only ever dream of. I do not get the right in our first
term to average annual spending growth of 10 per cent every year. That is what
the Liberal Party did. I do not get that right. I have said in this place that
my job is to deal with the fiscal mess of the former government. But S&P
Global gives the Liberal Party a little path back to credibility when it comes
to fiscal management, and that is this: get on board with the government's
budget decisions, get on board with the determination of this government for
fiscal repair and get on board with the decisions we have made both around
payroll and, as they should have, around gold.
Several members interjected.
The SPEAKER : Before you start
your supplementary, I call the member for Carine to order for the first time.

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