Page 2516 - Week 09 - Wednesday, 7 August 1991
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MS FOLLETT: I thank Mr Kaine for the question. I am not aware of the exact circumstances of the case that you raised. But I do think it is appropriate to remind the Assembly that the land tax that we are proposing will not be paid by people on their principal residences, and I think that in those circumstances it leaves some room for interpretation in that individual's case. However, Mr Speaker, the details such as those that Mr Kaine has raised are still being worked out. I think it is appropriate that very careful attention is paid in looking at this tax to make sure that people such as the person whom Mr Kaine has described are not disadvantaged by it.
I am aware, for instance, that there is a campaign being run by the Real Estate Institute, which I regard as a terror tactic; they are sending out brochures to a large number of tenants in the ACT, telling them that their rent will go up by 10 per cent. Mr Speaker, they have not provided any justification for that figure; nor can it be justified. It is a straight-out campaign of terrorising tenants into assisting the Real Estate Institute to resist this tax.
I would like to make a general comment that this is not a new tax that we are proposing; land tax is already paid by land-holders who hold that land for the purpose of profit, as an investment. Until this point people who have held residential land here for that purpose of profit have not paid the tax, although they do in other States in one form or another. So, what we are looking at is an extension of that tax to a category of land which is held for profit but which is held for profit as residential premises. I think the Real Estate Institute's campaign is a bit misdirected and is aimed at alarming the tenants to the maximum extent possible in order that the institute can drum up some support for its own campaign.
Mr Speaker, in conclusion I would like to say that it is our intention to look after low income earners who are in rented property, and we will of course be maintaining a very careful watch on any impact that this tax may have on low income earners. We have already expressed a wish to exempt Housing Trust properties from payment of the tax. Mr Connolly has been asked to look at the rental rebate scheme as the tax is brought into application, to see whether that scheme needs to be modified in any way to meet the particular needs of low income earners.
So, in brief, in answer to Mr Kaine: The detail that he seeks is still being worked out; but certainly it is not the intention to apply this tax in a draconian fashion, and people who feel that they have good reason to be exempted should not be discouraged from putting forward such a case.
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