Mr. Rundle asks about payroll tax relief for small businesses given the state's budget surplus. The Treasurer responds defensively, highlighting past payroll tax cuts and criticising the previous government's financial management.

AnsweredQoN 253Legislative Assembly
Asked
17 June 2021
Portfolio
Treasurer

QuestionView source ↗

SMALL BUSINESS — PAYROLL TAX
253. Mr P.J. RUNDLE to the Treasurer:
I
refer to the state government's predicted budget surplus of close to $5
billion off the back of record iron ore prices and GST returns. Given
this predicted $5 billion budget surplus, when will the government deliver
long-awaited payroll tax relief for the thousands of small businesses across WA
that are crying out for greater support?

AnswerView source ↗

I can only say to the member for Roe
that he should come to more of my press conferences! The member for Roe comes
and spies on my press conferences, just so members know. It is very poor form.
If members opposite want to have their press people and members come and spy at
our press conferences, we have a lot more people whom we can send to theirs. I suppose
the advantage for members opposite is that someone would actually come to one
of their press conferences!
In relation to the member's
question, we have already cut payroll tax. It may have passed the member for
Roe by, but we cut payroll tax. We lifted the threshold. Did he not notice
that? We lifted the threshold last year. It was called for by industry and this
government did it. When members opposite were in office for eight and a half
years, what did they do? Nothing! They put up taxes! Remember the three rounds
of land tax increases that the last government put in place? Remember that the
last government cancelled stamp duty cuts and payroll tax cuts when it arrived
in office? At the same time, it took debt from $3 billion and had it heading to
$44 billion—that is what members opposite managed to do! That expense
growth was—I kid you not—6.3 per cent per year. The state's
finances were going absolutely out of control over the course of that
government.
So what did we do? We came in and we
brought the situation back under control. We secured the GST deal—after
20 years, just so the member for Cottesloe knows. He was not here and he would
not know! The Leader of the Liberal Party is one of the most poorly informed
members I have ever seen in this house.
Just so members know, the GST deal
was signed in 1999 between Richard Court and John Howard. For 20 years, it
disadvantaged Western Australia. Colin Barnett and the former government railed
about it, and what happened? Nothing! This
government was elected. We worked with Malcolm Turnbull, Scott Morrison and
Mathias Cormann and we got it fixed. That is what happened! We brought spend
under control. Members opposite had spend growth —
Ms M.J. Davies : This is a delightful
history lesson.
Mr M. McGOWAN : No. He asked
me about all those matters; I wrote it down. The Leader of the Opposition was
not listening to her own member's question.
Ms M.J. Davies : The question
was about whether you will provide further relief for payroll tax.
Mr M. McGOWAN : Not even your
leader listens to you, member for Roe! But I know the member for Roe listens to
me, because he turns up and stands amidst the journalists at my press
conferences, which is very bad form!
Several members interjected.
The SPEAKER : The Premier has
the call!
Mr M. McGOWAN : He mentioned
in his question all these issues: surplus—those sorts of things—and
GST. I am giving members opposite a bit of a lesson on it, because they clearly
do not know.
The former government had 6.3 per
cent expense growth. Our expense growth in the lead-up to COVID was around two
per cent. What did that mean? We actually got the finances back on track. And
because we kept the iron ore industry open over COVID, contrary to the wishes,
I might add, of some Liberal politicians in the east, we managed to ensure that the state's economy was
strong. The price of iron ore has gone up—that is true—because
other countries and other states have
not managed their mining industries as well as Western Australia has. The price
of iron ore has gone up and we have been a beneficiary of that. We have been a beneficiary
of the GST deal. But you make your own luck, and that is what this government
has done; we have made our own luck. We kept the iron ore industry going over a
difficult period; we ensured the economy is very strong, which has ensured that
GST receipts have gone up; we put in place the HomeBuilder program, which has
ensured that stamp duty returns have gone up significantly; and, we
managed our spend to ensure that our state got back on a good trajectory and a good
pathway. We will not stop doing that.
Managing the finances and managing the economy well is what state Labor does.
The Liberals and Nationals in office were a disaster, and if they are
ever re-elected, they will be a disaster again.
Several members interjected.
The SPEAKER : We will just
wait for quiet, please!

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