Page 3771 - Week 12 - Thursday, 21 October 1993
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The decision as to the exact moment at which such a lease becomes long term is, of course, arbitrary, and it is always going to be arbitrary. My having chosen the 15-year period is every bit as arbitrary as the Law Society or Mr Kaine having chosen a longer period. I can tell you why, Madam Speaker, the Government did choose the 15-year period. It was chosen to provide some balance between the planning needs of business - I accept that they do have those planning needs - and the need to provide some equity in the tax arrangements. I should advise, Madam Speaker, that most business leases in the Territory - the majority of them - are for five years, with a further option to renew for five years. That is pretty much the standard practice and 15 years, therefore, seems to be sufficiently long to allow businesses to formulate long-term business plans on a more certain basis. Where lessors or lessees would prefer to have a longer-term lease they should be required to face the same tax regime as those taxpayers who are purchasing the property.
Madam Speaker, I disagree with the Law Society on the period that they have proposed and I believe that a 15-year period goes well beyond the majority of business leases in this Territory and it, therefore, I think, is an adequate period. I accept, as I say, that there is a certain arbitrariness about picking a period. The Government has chosen the shorter period, which I think reflects better the reality of leasing life in the Territory. I would urge members to oppose Mr Kaine's amendment for that reason.
Question put:
That the amendment (Mr Kaine's) be agreed to.
The Assembly voted -
AYES, 7 NOES, 10
Mrs Carnell Mr Berry
Mr Cornwell Mr Connolly
Mr De Domenico Ms Ellis
Mr Humphries Ms Follett
Mr Kaine Mrs Grassby
Mr Stevenson Mr Lamont
Mr Westende Ms McRae
Mr Moore
Ms Szuty
Mr Wood
Question so resolved in the negative.
Clause agreed to.
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