Page 6141 - Week 19 - Tuesday, 17 December 1991

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that it supported it. I note that the Bill changes the practice of stamping these instruments from that used elsewhere in Australia. However, as the Chief Minister correctly pointed out when introducing the Bill, there is an overwhelming preponderance of Commonwealth occupancy in many of the larger commercial tenancy agreements and, as the law presently stands, the incidence of tax does not fall upon the Commonwealth.

Mr Speaker, the reasons for shifting the liability are clear. This legislation has been discussed with those parties affected, to my knowledge. The Minister who introduced it has not indicated what the Commonwealth's reaction has been. She might care to indicate in her response whether the Commonwealth has made any comment. As we know, particularly with the Civil Aviation Authority and some other Commonwealth instrumentalities, there is a move out of the ACT. That is to be regretted.

I doubt that the Commonwealth can hang its hat on this particular specific decision and say that it is the last straw. The fact is that the Commonwealth is looking seriously again at the size of the public administration in the Territory. I believe that, as Canberra expands as a national headquarters for more and more national corporations, the space will be filled in by private industry and that there are no real long-term negative aspects to the legislation.

MR MOORE (10.34): I think this Bill is important in that it actually provides an opportunity whereby the ACT can levy an appropriate amount of tax on the Commonwealth in an indirect way. When so many of our tenancies are established with the Commonwealth and we are so dependent upon the Commonwealth, it is important that a transfer of emphasis from the lessee to the lessor, in this case, will provide an extra income and an appropriate income to the Territory. In this sense, I am delighted to have the opportunity to support this Bill.

I think it is something that we should continue looking at, to see whether there are other areas in which the Commonwealth does not, in effect, pay its way. I believe that it is appropriate that we should do so, not just with Commonwealth departments but also with statutory authorities and other government organisations. Mr Speaker, I have pleasure in lending my support to this Bill.

MR KAINE (Leader of the Opposition) (10.36): Mr Speaker, the Liberal Party supports this Bill, but we have noted the concern of the business community in connection with it. There is some concern out there in terms of the net effect, the net consequence, of this shifting of the liability from the lessee to the lessor, and we have noted that. We note also the Government's assurance that the business community, particularly BOMA, has accepted the Bill, and on that basis we believe that we have no reason for taking issue with it.


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