Page 6142 - Week 19 - Tuesday, 17 December 1991
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But we do note that there has been some concern expressed about the possible impacts which perhaps at this stage cannot be quantified. So, whether in opposition or government next year, we will be observing the consequences of this to see whether it is having a detrimental effect on our economy by causing difficulty in the rental market for commercial properties.
The general proposition which has been used to discount the concerns of the business community is generally along the lines that there is a very low vacancy rate, there is not a lot of property available for people, including Commonwealth agencies, who want to rent property, and therefore they cannot determine the rental market; and they cannot argue that the costs imposed by this new legislation should not be subsumed into the rental and amortised over time. That is essentially the argument against it.
The business community is saying that it is an additional impost of $400,000 a year - I think that is the figure - which they believe cannot be passed on. That is a matter which, if that assertion is true, can have a significant effect on the willingness of people to invest in commercial rental property in the ACT. It would therefore be seen as a disincentive to business and a possible adverse effect on our community. So, while we have no basis on which to move to change or to disallow the Bill - and we will support it for that reason - I think there are some matters that need to be observed closely in the future to see just what their impacts are. We, the Liberals, will be doing that.
MS FOLLETT (Chief Minister and Treasurer) (10.38), in reply: Mr Speaker, I would like to thank members for their support of this Bill that I have brought forward. They have raised very little in the way of new issues on this matter, but perhaps I could address a few of the remarks that have been made.
I note Mr Kaine's concern about the effect of this legislation on the business community. I would like to say again that a joint review was conducted by the Treasury and the Building Owners and Managers Association to examine the issue. That review confirmed that the ACT is still one of the most attractive property centres. I do not believe that there is any reason to think that altering the stamp duty provisions will have an effect on either the Territory's economy or industry in general.
I would also like to note that there were discussions with the Australian Property Group, which, to answer Mr Collaery's point, indicated that the Commonwealth would be willing to indirectly pay the duty, provided that it is passed on in the form of rent over the term of the lease.
I think it is important to note that there have been pretty wide-ranging discussions on this matter, that it has generally been agreed to by the parties with whom it has been discussed and, importantly, the Revenue Commissioner
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