❓ The Treasurer updates the house on the government's financial management and economic stimulus efforts, highlighting a surplus, reduced debt, and successful policies like the foreign buyer surcharge and stamp duty rebate, while criticising the opposition's stance.
AnsweredQoN 55Legislative Assembly
QuestionView source ↗
STATE ECONOMY
55. Dr A.D. BUTI to the Treasurer:
I
refer to the McGowan Labor government's commitment to creating more
local Western Australian jobs and driving economic growth through strong
financial management. Can the Treasurer update the house on this government's
efforts to not only deliver disciplined financial management, but also invest
in targeted programs that stimulate the economy; and can the Treasurer advise
the house whether he is aware of any risks to these efforts to grow the economy
and create jobs?
55. Dr A.D. BUTI to the Treasurer:
I
refer to the McGowan Labor government's commitment to creating more
local Western Australian jobs and driving economic growth through strong
financial management. Can the Treasurer update the house on this government's
efforts to not only deliver disciplined financial management, but also invest
in targeted programs that stimulate the economy; and can the Treasurer advise
the house whether he is aware of any risks to these efforts to grow the economy
and create jobs?
AnswerView source ↗
Before I answer that very good
question from the member for Armadale, on behalf of the member for Cockburn, I acknowledge
the staff and year 12 students from Emmanuel Catholic College, who are in the
chamber today.
In 2018–19, we delivered
the first surplus in five years. I remind the house we had a turnaround of an
operating deficit in 2016–17 of $2.5 billion. Remember that the $2.5 billion
operating surplus was based on power bill increases of seven per cent, plus
seven per cent, plus seven per cent that the former government said it was not
going to do. What that means, of course, is that the operating deficit would
have been larger had the Liberal Party been re-elected in 2017. That is the
simple reality. Now, thankfully, we are in a position in which net debt is $7 billion
lower now than it would have otherwise been had the Liberal Party been
re-elected—$7 billion lower than what the Liberal Party would have
delivered had it been re-elected in 2017.
One of the things that we did,
which we took to the election, and at the time we made it clear, was to fund a freeze
on TAFE fees. I will come back to that in just a minute, Mr Speaker. Also, it
was our view, here in the Labor Party, that those foreign nationals who invest
in residential real estate should pay their way for the infrastructure upon
which they benefit. It was fiercely opposed by the Liberal Party. The Liberal
Party has committed to abolish it once it comes into government. I do remember,
and I did like this quote from the shadow Treasurer during debate of that
particular bill, that he predicted that not one sale would take place to a foreign
national. I am delighted to say that as at 16 February 2020 the surcharge is
actually raising more than we expected at budget time. We are running ahead on the base of 423 transactions. By
way of an aside, that is more than in 2016–17, when there was no foreign surcharge. Just by way of an aside, Mr Speaker, because I think my
colleagues will find that of interest —
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman, I call you to order for the first time.
Mr B.S. WYATT : We are
tracking ahead on the revenue on our foreign buyers surcharge when the Liberal
Party said not one foreigner would invest in real estate in Western Australia
once that foreign buyer surcharge was in place. I am pleased to say that that
was of course a ludicrous statement by the member for Bateman, and the fact
that we are tracking so healthily highlights that fact.
I
was surprised last week when the member for Bateman and the Leader of the
Opposition confirmed that they are going to cut—roll back—the
75 per cent stamp duty rebate. I am incredibly disappointed that that is the
Liberal Party's position.
Several members interjected.
The SPEAKER : Members!
Mr B.S. WYATT : I am
incredibly disappointed that that is the position of the Liberal Party. Again, by
way of an aside, member for Armadale, in December building approvals for
multi-residentials were up 15 per cent, so the impact of a policy that the
Liberals are going to cut if they come into government is clearly working. I do
want to highlight a couple of comments on
this, because I think the real estate sector is onto the links. Last week, the
president of the Real Estate Institute of Western Australia, Damien Collins,
said —
''Stamp
duty relief for off-the-plan sales not only helps the government to meet its
target of 47 per cent of new dwellings in infill locations, but it helps
increase the speed of transition from apartment sales to actual construction
activity,''
Interestingly, the Leader of the
Opposition, in her error-riddled speech last week, and I quote her, said that
that policy—the 75 per cent rebate—''is just a ridiculous
policy''. I am still quoting the Leader of the Opposition —
� none of the existing � stock owned
by Western Australians will be sold �
Not one apparently, Mr Speaker.
Therefore, I will quote Gavin Hawkins from Edge Visionary Living—somebody
who actually does this for a living and who has skin in the game. I want to
quote what Mr Hawkins had to say —
''The stamp duty rebate has
been really significant �
It has obviously been a huge benefit
for those projects, particularly as overseas sales have picked up —
Who would have thunk, Mr Speaker —
� but I think it's got people
re-examining all projects � but we've noticed it's also flowing
over to our projects that are under construction.
� the rebates have got people talking
property again and there is a flow-on effect to projects under construction.
''It's been really
positive �
Several members interjected.
The SPEAKER : Members on my
left, I want to hear this.
Mr B.S. WYATT : Unsurprisingly, the apocalypse on
investment in residential real estate has not come about as predicted by the
member for Bateman. No surprise there; I guess he learnt everything out of the
ANZ, so who would have thought he would get that right!
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman, do not get baited.
Mr B.S. WYATT : Not only was
there that general spleen vent, which was the Liberal Party last week, it even
critiqued and complained around a cut to payroll tax. So when that bill comes
on for debate this week, I say to the Liberal Party: support us; let us lift
that threshold and give 11 000 businesses in Western Australia a payroll tax
cut. Get out of the way Liberal Party as we go about doing something it did not
do—that is, growing the Western Australian economy.
Mr D.C. Nalder interjected.
The
SPEAKER : Member for Bateman, I call
you to order for the second time. You have not stopped yapping today.
question from the member for Armadale, on behalf of the member for Cockburn, I acknowledge
the staff and year 12 students from Emmanuel Catholic College, who are in the
chamber today.
In 2018–19, we delivered
the first surplus in five years. I remind the house we had a turnaround of an
operating deficit in 2016–17 of $2.5 billion. Remember that the $2.5 billion
operating surplus was based on power bill increases of seven per cent, plus
seven per cent, plus seven per cent that the former government said it was not
going to do. What that means, of course, is that the operating deficit would
have been larger had the Liberal Party been re-elected in 2017. That is the
simple reality. Now, thankfully, we are in a position in which net debt is $7 billion
lower now than it would have otherwise been had the Liberal Party been
re-elected—$7 billion lower than what the Liberal Party would have
delivered had it been re-elected in 2017.
One of the things that we did,
which we took to the election, and at the time we made it clear, was to fund a freeze
on TAFE fees. I will come back to that in just a minute, Mr Speaker. Also, it
was our view, here in the Labor Party, that those foreign nationals who invest
in residential real estate should pay their way for the infrastructure upon
which they benefit. It was fiercely opposed by the Liberal Party. The Liberal
Party has committed to abolish it once it comes into government. I do remember,
and I did like this quote from the shadow Treasurer during debate of that
particular bill, that he predicted that not one sale would take place to a foreign
national. I am delighted to say that as at 16 February 2020 the surcharge is
actually raising more than we expected at budget time. We are running ahead on the base of 423 transactions. By
way of an aside, that is more than in 2016–17, when there was no foreign surcharge. Just by way of an aside, Mr Speaker, because I think my
colleagues will find that of interest —
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman, I call you to order for the first time.
Mr B.S. WYATT : We are
tracking ahead on the revenue on our foreign buyers surcharge when the Liberal
Party said not one foreigner would invest in real estate in Western Australia
once that foreign buyer surcharge was in place. I am pleased to say that that
was of course a ludicrous statement by the member for Bateman, and the fact
that we are tracking so healthily highlights that fact.
I
was surprised last week when the member for Bateman and the Leader of the
Opposition confirmed that they are going to cut—roll back—the
75 per cent stamp duty rebate. I am incredibly disappointed that that is the
Liberal Party's position.
Several members interjected.
The SPEAKER : Members!
Mr B.S. WYATT : I am
incredibly disappointed that that is the position of the Liberal Party. Again, by
way of an aside, member for Armadale, in December building approvals for
multi-residentials were up 15 per cent, so the impact of a policy that the
Liberals are going to cut if they come into government is clearly working. I do
want to highlight a couple of comments on
this, because I think the real estate sector is onto the links. Last week, the
president of the Real Estate Institute of Western Australia, Damien Collins,
said —
''Stamp
duty relief for off-the-plan sales not only helps the government to meet its
target of 47 per cent of new dwellings in infill locations, but it helps
increase the speed of transition from apartment sales to actual construction
activity,''
Interestingly, the Leader of the
Opposition, in her error-riddled speech last week, and I quote her, said that
that policy—the 75 per cent rebate—''is just a ridiculous
policy''. I am still quoting the Leader of the Opposition —
� none of the existing � stock owned
by Western Australians will be sold �
Not one apparently, Mr Speaker.
Therefore, I will quote Gavin Hawkins from Edge Visionary Living—somebody
who actually does this for a living and who has skin in the game. I want to
quote what Mr Hawkins had to say —
''The stamp duty rebate has
been really significant �
It has obviously been a huge benefit
for those projects, particularly as overseas sales have picked up —
Who would have thunk, Mr Speaker —
� but I think it's got people
re-examining all projects � but we've noticed it's also flowing
over to our projects that are under construction.
� the rebates have got people talking
property again and there is a flow-on effect to projects under construction.
''It's been really
positive �
Several members interjected.
The SPEAKER : Members on my
left, I want to hear this.
Mr B.S. WYATT : Unsurprisingly, the apocalypse on
investment in residential real estate has not come about as predicted by the
member for Bateman. No surprise there; I guess he learnt everything out of the
ANZ, so who would have thought he would get that right!
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman, do not get baited.
Mr B.S. WYATT : Not only was
there that general spleen vent, which was the Liberal Party last week, it even
critiqued and complained around a cut to payroll tax. So when that bill comes
on for debate this week, I say to the Liberal Party: support us; let us lift
that threshold and give 11 000 businesses in Western Australia a payroll tax
cut. Get out of the way Liberal Party as we go about doing something it did not
do—that is, growing the Western Australian economy.
Mr D.C. Nalder interjected.
The
SPEAKER : Member for Bateman, I call
you to order for the second time. You have not stopped yapping today.
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