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into its biology and habitat needs. Members will note that, in the capital works budget, more than $1m has been allocated to commence work on the Gungahlin Town Centre. This work will commence before the end of 1995, as per the commitment we gave to Gungahlin earlier this year. Finally, a total of $100,000 has been set aside to set up and provide support to the new local area planning advisory committees that have been established by the Government to improve consultation on planning and development issues.

One of the ways the previous Government kept some sort of lid on its growing deficit was to increase taxes and charges. Our revenues are now broadly equal to those of other States. This is, of course, of little comfort to ratepayers and it certainly has provided no competitive advantage to local businesses. This Government has limited the increase in our own-source revenue effort in 1995-96 to under 5 per cent. This effectively means that, despite the budget blow-out from Labor's legacy, taxes have barely increased in real terms. As promised, individual increases in residential and commercial rates have been held to the estimated movement in the rate of inflation. An independent review has also been commissioned to identify the most suitable rating and land valuation system for the Territory. We want to ensure that ratepayers are treated more equitably and are not unduly exposed to large rates variations from year to year.

The Government has also delivered on its commitment to change the focus of land tax to affect only income-producing properties. From 1 July 1995, if a property is not available for rental, there will be no land tax. This initiative will result in an annual revenue loss of $2.1m, but it has addressed the inequities faced by many Canberrans. Later this year a new rate of gaming machine tax will be applied to some licensed clubs in the ACT. A one per cent levy will be imposed on large clubs with a monthly revenue in excess of $25,000 from 1 November 1995. Following extensive discussions with the Licensed Clubs Association, the $1m to be generated from the levy will be used this year to assist the ACT Academy of Sport’s elite athlete program.

It is a fact of life that, as an island surrounded by New South Wales, the Territory's taxation policy must be responsive to moves in other States. This is to ensure that our businesses and taxpayers are not disadvantaged and that our tax base is protected. The budget therefore reflects that from 1 July 1995 the liquor franchise fee on low alcohol wine products has been abolished in line with New South Wales, the stamp duty on transfers of all listed marketable securities has been halved, from 0.6 per cent to 0.3 per cent, in line with all other States, and the tobacco franchise fee has been increased from 75 per cent to 100 per cent, in line with New South Wales.

Today I will outline major changes to payroll tax in the ACT that are designed to boost employment growth and improve the competitiveness of local businesses. Following amendments passed in the Assembly, a payroll tax exemption has been introduced to enhance job opportunities for long-term unemployed. From 1 July this year, Canberra firms that employ a person who has been out of work for at least 12 months will be entitled to a two-year exemption for that employee. From 1 January 1996, the payroll tax-free threshold will increase by $50,000 to $600,000, at an annual cost of $1.8m. This will remove the payroll tax liability completely for at least 30 Canberra businesses and reduce the liability for all taxable businesses by $3,500 per year.

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