Page 1902 - Week 07 - Tuesday, 14 June 1994
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Madam Speaker, the Government is conscious of the contribution that ratepayers make to the ACT budget and the fact that revenue from rates and land tax has increased significantly in recent years. These past increases have ensured that revenue from municipal rates in the ACT is now more closely aligned with the State average. The ACT's revenue raising effort for land tax has also improved markedly. The increase will raise the rates bill for the average residential property by 3.7 per cent or $26. The average rates on commercial properties will fall by 4.4 per cent.
In setting the municipal rate for 1994-95, the Government has given due consideration to issues raised in budget submissions from community groups. The Canberra Rates Association has argued in its budget submission that rates for individual properties should be capped to inflation. As I have stated publicly, I do not support rates capping. It benefits landowners whose assets are increasing in value by more than inflation, at the expense of those whose property values are increasing by less than inflation, or falling. An overall increase in line with forecast inflation ensures that, on average, ratepayers will be no worse off than in 1993-94, while the integrity of the 1994-95 budget will be maintained.
In conclusion, Madam Speaker, I commend the Rates and Land Tax (Amendment) Bill to the Assembly as an essential money Bill for the 1994-95 budget, and I present the explanatory memorandum for the Bill.
Debate (on motion by Mr Kaine) adjourned.
FINANCIAL INSTITUTIONS DUTY (VALIDATION) BILL 1994
MS FOLLETT (Chief Minister and Treasurer) (4.37), by leave: I present the Financial Institutions Duty (Validation) Bill 1994.
Title read by Clerk.
MS FOLLETT: Madam Speaker, I move:
That this Bill be agreed to in principle.
This Bill introduces retrospective legislation to validate the collection and recovery of short-term dealing duty at a rate of 0.005c in the dollar for the period 1 November 1992 to 16 May 1994 inclusive.
Madam Speaker, members will be aware of my Government's attitude towards retrospective legislation and they may be assured that the need for the legislation has been critically examined by the Government before this Bill was introduced to this Assembly. The simple truth of the matter is that when the determination setting the rates of financial institutions duty was last made the instrument was incomplete. The primary rate of financial institutions duty was increased from 0.08 per cent to 0.10 per cent of the value of each receipt, effective from 1 November 1992; but the short-term dealing rate
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