Page 3238 - Week 11 - Thursday, 12 September 1991

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purposes is to be determined on the purpose for which the property is being used on 1 July in the tax year. For this year only, it will be determined and applied from 1 August, a date after the announcement of the proposal to extend the tax.

Under the Bill, owners of residential land are required to advise the Commissioner for ACT Revenue whether or not a property is occupied as the principal place of residence. Owners of exempt residential land are required to inform the Commissioner for ACT Revenue within 30 days where land is sold, is no longer occupied as the principal place of residence, or, in the case of a new lease, is being used otherwise than as the principal place of residence of the owner.

Similarly, owners of taxable land must inform the commissioner of any change in circumstance affecting the liability of the property to tax. Initial determination of liability will involve letters to all owners of residential leases, and therefore there will be maximum effort made through existing forms of contact with residential leaseholders to remind them of their obligations with regard to liability.

Mr Speaker, under provisions in the Bill the commissioner is given powers similar to those he has under the Taxation (Administration) Act to acquire information in order to assess a taxpayer's liability. Penalties are provided in the Bill for failing to provide information, providing false or misleading information, or attempting to avoid or evade the tax. These provisions are consistent with the provisions of the Taxation (Administration) Act.

Under provisions in the Bill, the commissioner has the power to remit or refund penalty tax where he considers this action to be fair and reasonable. The Bill provides for a person to be able to object to a decision of the commissioner as to liability to land tax, and to the severity of penalty tax, and provides for an appeal to the Administrative Appeals Tribunal where the commissioner does not allow the objection.

In conclusion, Mr Speaker, the effect of the Bill I have presented today will be to broaden the land tax base to include the majority of properties used for income earning purposes and thus to provide much needed revenue for the Territory. I now present the explanatory memorandum for the Bill.

Debate (on motion by Mr Kaine) adjourned.


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