STAMP DUTIES AND TAXES (AMENDMENT) BILL 1995

MRS CARNELL (Chief Minister and Treasurer) (10.34): Mr Speaker, I present the Stamp Duties and Taxes (Amendment) Bill 1995, together with the explanatory memorandum.

Title read by Clerk.

MRS CARNELL: I move:

That this Bill be agreed to in principle.

Mr Speaker, the Stamp Duties and Taxes (Amendment) Bill 1995 provides for an amendment to the Stamp Duties and Taxes Act 1987. The Bill proposes a one-off exemption from ACT stamp duty for vehicles transferring from the Federal interstate registration scheme to ACT registration after 30 June 1995. The Stamp Duties and Taxes Act 1987 provides for the imposition of stamp duty when vehicles are registered under the Motor Traffic Act 1936. Stamp duty is payable on the initial registration and on transfers of registration.

The Commonwealth offers a registration scheme, known as the Federal interstate registration scheme, for vehicles which transport goods across State and Territory borders. There are approximately 250 vehicles garaged in the ACT which are registered under this scheme. Vehicles registered in this scheme are not subject to stamp duty. After 1 July 1995, the Federal interstate registration scheme will be phased out. As registrations expire, the owners of vehicles registered in this scheme will find it necessary to apply for State and Territory registration. New South Wales has agreed to provide a stamp duty exemption for these vehicles. If the ACT does not follow suit with a similar exemption, the owners of Federally registered vehicles may change their garaging arrangements to allow them to register in New South Wales to avoid ACT stamp duty. Wherever this happens, New South Wales will receive the benefit of ongoing revenue from registration fees. It is estimated that, if every Federally registered vehicle garaged in the ACT were to register in New South Wales, this would cost the Territory approximately $360,000 per annum in registration fees revenue. The Government considers that a one-off exemption should be provided to match the New South Wales concession and protect the revenue base.

Debate (on motion by Ms Follett) adjourned.

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