Page 3024 - Week 09 - Thursday, 13 October 2022
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investments and programs that will best contribute to improved quality of life. We have commenced consideration of gender responsive budgeting and we are exploring how government can further mature its consideration of gender impacts within the budget process.
In infrastructure, we have updated the capital framework, which was launched in September, to guide business case development for next year’s budget and onwards. The updated capital framework provides an enhanced and fit-for-purpose guidance to support ACT government agencies in undertaking analysis of infrastructure projects to inform government investment decisions.
Our fiscal strategy remains one of continuous improvement. The government has, as I have said, balanced the need to improve our fiscal position, which we have done this year and across the forwards, with the need to invest in services. The economic and fiscal strategy has underpinned consumer confidence, and it has seen our economy bounce back as public health social measures have eased, ensuring that our economy is in the best possible shape to move forward.
The economy performed more strongly in 2021-22 than was expected at the time of last year’s budget. Private sector activity has progressively recovered since some of the COVID public health social measures were eased. A bounce-back in state final demand in the December quarter of 2021 continued into the March and June quarters, demonstrating the resilience of the territory economy.
It is here I want to point out that we have had 32 consecutive years of economic growth. No other jurisdiction, at a subnational level in Australia, has achieved 32 consecutive years of economic growth. We were the only state or territory to not go into recession during the COVID pandemic.
Our population has grown more strongly, the fastest of all states and territories. Growth in gross state product for the ACT is expected to remain robust, at around three per cent per annum in real terms across the forward estimates. As we ease off public stimulus, private sector growth will make an increased contribution to the territory’s total economic growth. But the government’s infrastructure investment program will also contribute to ongoing economic activity and job creation, as will the return, and we are seeing it already, of international students and tourists.
Let us talk about tax reform. We are at the forefront of tax reform in Australia. For more than a decade, we have been undertaking a tax reform program to make our tax system more efficient, fairer and more stable. We are the only state or territory in Australia that has abolished tax on insurance. Revenue from stamp duty as a share of all ACT government taxation continues to fall.
In this budget, we have continued to reduce residential and commercial stamp duty tax rates as part of stage three of tax reform. We have raised the lowest stamp duty threshold for residential owner-occupiers from $200,000 to $260,000. This reduces duty on all homes in the territory that are purchased between $260,000 and $1.45 million by a further $1,120.
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