Page 711 - Week 03 - Tuesday, 12 April 1994

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1993 Review the allowance was effectively replaced by new assessment methodology and the specific allowance was discontinued from 1993-94.

The current per capita levels of the remaining allowances, as determined in the 1993 Review, are shown in Table 2. These per capita levels are expected to remain unchanged until the next methodology review, due in 1998. The allowances can be expected to increase in line with population growth, which is currently forecast at 1.8% per annum.

Table 2: Per Capita levels of National Capital Allowances, 1993-94 to 1998-1999

Expenditure category $PC

Culture and Recreation 5.00

National Parks and Wildlife 6.40

Planning and Environment 2.00

Public Safety and Emergency Services 7.00

TOTAL 20.40

No specific allowances are made for the impact of National Capital influences on the ACTs revenue capacity as this is included in the Commissions normal process for measuring the relative revenue raising capacity of the States and Territories.

Payments by the Commonwealth for the full cost of direct services in national areas are in addition to the specific allowances made by the Commission. They are expected to continue whilst the ACT agrees to continue to provide the services.

In addition, the ACT received $18.3m in 1993-94 for National Capital influences on municipal services. This amount is indexed and is expected to continue in real terms in future years.

Transitional Allowances

Transitional Allowances recognise the additional costs experienced by the ACT in the transition period between the Commonwealth policies inherited at the time of self government and the full implementation of the ACTS own policies. Table 3 shows the levels of Transitional Allowances over the life of the allowances.

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