ABS statistics released today reveal South Australia’s trend State Final Demand, which is a measure of spending in the economy, rose by 0.3 per cent, higher than the national growth rate of 0.2 per cent.
The figures follow strong spending in the December quarter, when State Final Demand in South Australia rose by 0.4 per cent on trend terms, higher than the other mining states of Western Australia and Queensland in the same period.
The ABS figures contradict claims Liberal Leader Steven Marshall made on ABC radio last week that South Australia’s economy was growing at a fraction of the national growth rate.
“Our economy in South Australia is a fraction of the national growth rate… and it has been for a long period of time,” he told 891 listeners.
When challenged on the claim by Treasurer Tom Koutsantonis, Mr Marshall stated that South Australia’s economy was not growing “at the same rate as the national economy.”
State Final Demand is used by economists to measure activity and growth in the economy.
The State Government has introduced nation-leading tax cuts for business in order to assist in the transformation of the economy and meet the challenges resulting from low commodity prices and the decline of traditional manufacturing.
Those cuts include the abolition of all conveyance duty on non-real property transfers, in place already, and the phased abolition by 2018 of stamp duty on non-residential, non-primary production real property.
South Australia now has the lowest level of taxation on these types of transfers anywhere in Australia, and KPMG recently ranked Adelaide the cheapest city in Australia to run a business.
By July 2018 South Australia with be the only jurisdiction in the country where all business property transactions will be entirely tax free.
Quotes attributable to Treasurer Tom Koutsantonis
We are seeing a consistent scare campaign from Mr Marshall and the Liberals about the state of the economy in South Australia.
There is a lot of work to be done to address unemployment in South Australia during this period of economic transformation, nobody denies that.
But these ABS figures demonstrate the resilience of the South Australian economy in a period of significant structural change.
Making false claims about how our economy is performing is extremely counter productive and damages business confidence in this state.
I simply ask that when discussing the state of the economy in South Australia Mr Marshall uses facts, rather than scare campaign tactics.