Page 2122 - Week 07 - Thursday, 16 June 1994
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Mr Kaine also raised the question of the burden not falling equally across the community, and that is something that is also of great concern to me. This year it seems to me that the UCV increases are particularly patchy. There are really only two areas that have been subject to a substantial increase. One is the suburb of Bruce and the other is generally referred to as the inner north of Canberra - the area where I live, in fact. The increases in the inner north are up to about the 20 per cent level. The UCV reflects the marketability, the attractiveness, of an area, and as property owners I guess you should be grateful to know that your property is marketable and attractive and increasing in value. I must say, on a personal note, that when I bought my present house some 10 years ago I bought it thinking that it would rise rapidly in value because of its location and because the area was, in my view, very cheap at the time. It has taken 10 years for my expectations to be realised, and in fact the increase in that area has been very slow indeed. But now it appears that it is catching up with what I would consider to be its true market value. That means that in the older areas of Ainslie, Dickson, Downer, Watson and Hackett we are facing much larger rates bills than in previous years.
Mr Kaine wondered whether there was a fairer system than using the unimproved capital value. I have wondered the same thing myself. I have not come up with one. It has to be remembered that rates are one of the few progressive taxes available at this level of government. As Mr Moore said, they are a tax on unearned profits and they do truly reflect a person's wealth. For many people, of course, that is paper wealth. They are not about to sell their house in order to pay their rates. But it is a reflection of their wealth, and it is a tax on wealth. As Mr De Domenico pointed out, some of the lower rated areas have increased by much more than some of the very highly rated areas. Again, I think it is the market evening itself out somewhat.
There are many issues to do with rates. I think this debate will continue for many years. I do not support the capping of rates. I believe that that disadvantages people in lower rated areas to the benefit of people in relatively wealthy areas. That is just not fair, in my view, so I do not support that proposal. Other proposals will come forward from time to time. If there is a fairer system I would like to know about it because, as other speakers have pointed out, there are some apparent inequities creeping into the system we use. I thank members for their support of the Bill. The upshot of this Bill is to maintain a very important part of the Territory's revenue base and to increase the take to the Government by about the CPI rate, so it is hardly an extravagant measure.
Question resolved in the affirmative.
Bill agreed to in principle.
Leave granted to dispense with the detail stage.
Bill agreed to.
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