Page 6131 - Week 18 - Thursday, 12 December 1991
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CHIEF MINISTER FOR THE AUSTRALIAN CAPITAL TERRITORY
LEGISLATIVE ASSEMBLY QUESTION
QUESTION WITHOUT NOTICE
10 DECEMBER 1991
MRS NOLAN: MY QUESTION 3S TO THE CHIEF MINISTER IN HER CAPACITY AS TREASURE. I REFER THE CHIEF MINISTER TO THE 1% LAND TAX INTRODUCED IN RELATION TO RESIDENTIAL PREMISES. WHAT WORK WAS DONE BY THE TREASURY IN RELATION TO ANY THRESHOLD THAT COULD HAVE BEEN INTRODUCED AND WHAT REVENUES WOULD HAVE BEEN RAISED HAD THE THRESHOLD BEEN INTRODUCED AT 10, 20, 30, 40 OR 50 THOUSAND DOLLARS ON THE UNIMPROVED CAPITAL VALUE?
MY ANSWER IS: WORK DONE BY THE TREASURY HAS INDICATED THAT THE SETTING OF A THRESHOLD AT ANY LEVEL WOULD AFFECT REVENUE AND LEAD TQ_INEQUITIES UNLESS INTRODUCED IN CONJUNCTION WITH TM COMPLEX SYSTEM OF AGGREGATION WHICH EXISTS IN OTHER LAND TAX JURISDICTIONS.
ANY THRESHOLD WOULD NEED TO APPLY TO-ALL TAXABLE PROPERTIES, BOTH COMMERCIAL AND RENTED RESIDENTIAL AND TAX WOULD BE PAYABLE ON EACH $1 ABOVE THE. THRESHOLD .
WITHOUT AGGREGATION MULTIPLE LANDOWNERS RECEIVE THE BENEFIT OF
THE THRESHOLD FOR EACH PROPERTY OWNED WHILE SINGLE PROPERTY
HOLDERS GAIN THE BENEFIT ONLY ONCE. THRESHOLDS ALSO BEAD TO THE DELIBERATE PARTITIONING STRATA TITLING OF LAND BY OWNERS TO GAIN THE MAXIMUM BENEFIT.
AGGREGATION SYSTEMS ARE HIGHLY COMPLEX AND DIFFICULT TO
ADMINISTER. THEY :RAISE COMPLEX ISSUES IN RELATION TO
OWNERSHIP THROUGH Antes AND- TRUST STRUCTURES ,ANDS TO.. JOINT
LAND HOLDERS .WHO OWN MULTIPLE BLOCKS OF LAND BUT WITH
DIFFERENT PARTNERS.
AT THIS TIME ITV IS BELIEVED THAT A -THRESHOLD I8 . NCI NECESSARY, GIVEN THE A.C.T. S NARROW TAX SASE, THE LOW RATE OF TAX (1%), AND THE MINIIoGL. IMPACT OF THE TAX IN THE VAST MAJORITY OF CASES.
TIC FINIAL IMPACT OF A THRESHOLD AT A NUMBER OF LEVELS WAS RESEARCHED INCIJDING, $301000 AND $50,000. ......
6131.
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