Page 4076 - Week 13 - Thursday, 10 November 1994
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... I believe there is a requirement for Government to deliver the appropriate level of services efficiently and effectively, thereby being within a fiscal framework that is conducive to economic expansion.
Prior to self-government the Business Council prepared a "Budget Blueprint" paper, which established the opportunity for the ACT city state to provide a fiscal environment distinctly different from elsewhere in Australia, which would be one characterised by moderate taxation and a disciplined expenditure and low debt. Sadly, this unique opportunity is now being squandered.
In budget figures available to me from 1988-89 to 1992-93, general rates have increased $25 million, an increase of 52%; land tax has gone up $15.6 million, an increase of 222%; payroll tax is up $31 million -
as Mr Stevenson mentioned, quite correctly -
an increase of 52 per cent; stamp duties on general insurance have doubled as has motor vehicle insurances and stamp duty on share transfers. Petrol franchise taxes have doubled and financial institutions duty has gone up 300%.
Mr Connolly: The Alliance did that one, Mr Stefaniak, you may recall.
MR STEFANIAK: I am coming to that, Mr Connolly. I do not think you have helped matters much. The letter goes on:
Although some of these revenue mechanisms have just been brought into line with the States, we have seen the evolution of the ACT Revenue Office extending payroll taxes into areas of fringe benefits tax and long service leave entitlements, contrary to the practice in New South Wales and Victoria. In other words, we are winding up a big administration to collect taxes with little discipline being applied to expenditure and with the latest budget figures forecasting an increase in debt of well over $200 million in the next four years.
He is critical, in part, of the Alliance Government, although he does actually praise that Government. He says:
Therefore, successive Governments in the ACT have avoided the difficult decisions in delivering responsible budgets and, in retrospect, the only expenditure reductions have only been those forced on us by the substantial reduction in Commonwealth funding. The ACT Government ... have simply avoided the major hard decisions in the reduction of expenditure, reduction of programs and the efficient and effective delivery of services that are required.
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