Page 3361 - Week 12 - Tuesday, 17 September 1991
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The program includes $54m for the balance of commitment for the hospitals redevelopment project. Work on the project, at a total estimated cost of $171m in June 1991 dollars, will have a major impact on the program over the next four years. A significant boost to construction activity will also be provided by the Housing Trust, which will spend over $31m on constructing new dwellings this year. Including works undertaken by ACTEW, total government construction expenditure is expected to be $181m this year, compared with $200m in 1990-91.
Progress continues on a casino for the ACT, with tenders closing at the end of September. In response to the report of the Select Committee on Cultural Activities and Facilities, I wish to renew my Government's commitment that the premium from the operation of the casino will be used to enhance community facilities in the ACT.
Revenues
As I said earlier, our strategy for achieving a balanced budget has not relied heavily on increasing revenues. But, given the rapid adjustment forced by the Commonwealth retreat, some new measures have been unavoidable. I have already announced the introduction of a natural gas levy. Tobacco licence fees have been increased to 50 per cent, keeping in line with New South Wales arrangements.
We have carefully reviewed our earlier decision to make investment properties liable for land tax from 1 August 1991. In the light of community concern, we have decided that there should be relief for ACT residents temporarily posted out of Canberra because of the requirements of their employment.
In addition, some stamp duties will be adjusted to raise $2.9m in 1991-92 and $4.3m in a full year. Amongst these changes is an increase in stamp duty on commercial leases from 35c to 50c per $100. Liability for the payment of duty on leases will be shifted from the lessee to the lessor. This will allow the Territory to broaden its tax base by taxing all rented commercial property, including some Commonwealth rented accommodation.
The rate of duty on general insurance policies, other than motor vehicle policies, will be increased from 7 per cent to 10 per cent. Duty on the transfer of motor vehicles will increase from 2 per cent to 2.5 per cent. These increases should have minimal impact on economic activity within the Territory. Some relief will be provided by the Government's decision to abolish stamp duty on residential tenancy agreements. Collection of this tax involves a large administrative effort for a low return in revenue. We are all better off without it.
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