Page 3122 - Week 10 - Wednesday, 15 September 1993
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Madam Speaker, a number of cases have been identified where long-term leases have been granted by the owner of a crown lease, which effectively transfers an interest in a portion or the whole of the crown lease. The terms of these subleases range up to 99 years and in effect possess most of the attributes of a conveyance of the property. This practice is considered to have developed to minimise stamp duty liability. To combat these practices it is proposed that stamp duty, at conveyance rates, be imposed on leases and subleases where the term and options for renewal, if any, exceed 15 years. Options to renew leases beyond an initial period need to be included as assessable to prevent this proposal being easily circumvented. To allow lease renewal options to be included as an assessable part of these long-term leases, the definition of "lease" within the Act will need amending. This Bill proposes an appropriate amendment to the definition of "lease" to allow this measure to be implemented. Madam Speaker, I commend the Bill to the Assembly, and I present the explanatory memorandum to the Bill.
Debate (on motion by Mr Kaine) adjourned.
BUSINESS FRANCHISE (TOBACCO AND PETROLEUM PRODUCTS) (AMENDMENT) BILL 1993
MS FOLLETT (Chief Minister and Treasurer) (3.51): I present the Business Franchise (Tobacco and Petroleum Products) (Amendment) Bill 1993.
Title read by Clerk.
MS FOLLETT: Madam Speaker, I move:
That this Bill be agreed to in principle.
The Business Franchise (Tobacco and Petroleum Products) Act 1984 imposes business franchise licence fees on the supply of tobacco and petroleum products in the Australian Capital Territory in order to regulate the activities of these industries and as a source of general revenue. The Territory has operated a diesel fuel exemption scheme for off-road users of diesel fuel since 1987 in line with exemptions provided in the States. These schemes are intended to provide relief to primary producers in the forestry, pastoral, agriculture and fishing industries. Some 4,500 people currently hold exemption certificates in the ACT. Diesel sold to certificate holders is exempt from the franchise fee, currently 7.08c per litre. In the ACT, however, only about one per cent of exempt fuel is used for farming operations, with the remainder being used for various other business activities, including off-road plant and heating.
The current scheme is burdensome to the diesel suppliers and it is difficult to police. The Commissioner for ACT Revenue advises that there is widespread abuse of the scheme, with exempt fuel being diverted to on-road use in vehicles serving the construction and transport industries, as well as personal use in four-wheel drive and other diesel-powered vehicles. Madam Speaker, the current scheme is inequitable. It is inequitable because it is a concession to users of diesel while commensurate benefits are not available to users of other types of fuel for similar purposes, and because the exemption scheme in its present form is not means tested; nor is it targeted at any disadvantaged group.
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