Page 2327 - Week 08 - Thursday, 7 June 1990
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RATES AND LAND TAX (AMENDMENT) BILL (NO. 2) 1990
Debate resumed from 31 May 1990, on motion by Mr Duby:
That this Bill be agreed to in principle.
MS FOLLETT (Leader of the Opposition) (4.50): Mr Speaker, I find this a very interesting piece of legislation being put forward by the Government, particularly in view of the debate that we have had for most of today concerning the integrity of government and the integrity of politicians. I am sure that everybody in this chamber would remember during the election campaign the various commitments that were given on the question of rates and taxes, and indeed it was an issue that was very dear to the hearts of the voters at the time. I myself gave a commitment on behalf of my party that I would not increase the level of rates in real terms, and last year in our budget I stood by that commitment. The level of rates that we set was on the basis that the total level of revenue from rates would not increase by greater than the rate of inflation.
The current Chief Minister, on the other hand, gave a much broader commitment than I did. He gave a commitment to the people of Canberra that he would not increase rates and that he would not increase business taxes either, and the Bill that we have before us breaks his commitment on both grounds.
The part of the Bill that I take exception to is that which increases the rates for ordinary Canberra citizens well beyond the level of inflation, and I can see no reason to do that. I did not feel called upon to do that in my budget. However, I do not think it will come as any great surprise to the people of Canberra, because this Government has a bit of a record at this point of slugging the ordinary Canberra citizen, the battler, and letting the rest of the business community off scot-free whenever it can. It is a sell-out of the Government's election promise on rates. I foreshadow that, on the question of rates, I have an amendment to clause 6 of this Bill which would bring the rates into line with the increase in inflation. I think that amendment has been circulated.
On the question of land tax, I actually support what Mr Kaine has done with land tax. I can do that while still keeping my election commitments. He cannot, but that is a problem for him, not for me. The movement in land tax that is proposed in this Bill does comprise a first step in bringing land tax into line with the States. Following the passage of this Bill, land taxes in the ACT will be brought up to, I believe, 50 per cent of the New South Wales rate of land tax. So there is still some way to go in order to prevent the Grants Commission from penalising us. I believe it would be about $12m that we would be penalised because of our relative lack of effort in this area, but it is a first step, as I say, and it is one which we support.
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