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Legislative Assembly for the ACT: 1997 Week 3 Hansard (10 April) . . Page.. 837 ..
MRS CARNELL (continuing):
In summary, Mr Speaker, the introduction of debits tax to the ACT will further align the ACT with the New South Wales tax regime. Debits tax, in conjunction with a reduction in financial institutions duty, will result in an increase in estimated revenue from the tax of approximately $4.3m annually, an expected decrease in avoidance activities which should minimise tax losses, and significant benefits to financial institutions resulting from the effective collection of FID and debits tax at uniform rates, in most jurisdictions.
Debate (on motion by Mr Whitecross) adjourned.
MRS CARNELL (Chief Minister) (10.39): Mr Speaker, I present the Rates and Land Rent (Relief) (Amendment) Bill 1997, together with its explanatory memorandum.
Title read by Clerk.
MRS CARNELL: I move:
That this Bill be agreed to in principle.
Mr Speaker, this Bill provides for the introduction of a cap on the general rates rebate concession available for all new eligible pensioners from 1 July this year. I announced the Government's intention to introduce this measure in the 1996-97 budget speech to the Assembly on 24 September 1996. The introduction of a cap will limit the erosion of revenue in future years as the ACT's population ages and brings the ACT into line with practice in the States. The cap will be set at $250, which is equal to the maximum rebate concession provided by the New South Wales Government. While individual councils in New South Wales may choose to provide additional relief, the proposed cap of $250 in the ACT compares favourably with similar rebates in New South Wales and Victoria. Mr Speaker, the Government's initiative will also ensure that all existing eligible pensioners as at 30 June 1997 will retain their present entitlement to the 50 per cent rebate. The Bill also makes that entitlement portable and such pensioners will be able to transfer their entitlement should they purchase a new home in the future.
Mr Speaker, the Government is aware that the setting of a cap may cause financial hardship in certain circumstances. To alleviate any such hardship, affected pensioners will have the right to defer the balance of their rates. Indeed, all eligible pensioners are entitled to defer the unrebated balance of their rates under the provisions of the Rates and Land Rent (Relief) Act. The Bill also simplifies the deferment procedures to assist pensioners and the less well-off in our community. A problem for pensioners or financially disadvantaged owners at present is that for a rates deferment to be finalised they must produce their copy of the lease so that the deferment can be registered on their property title. Where an owner has a mortgage, that copy of the lease is normally held by the financial institution holding the mortgage. An owner may incur a charge of several hundred dollars in having the financial institution produce the lease for registration of the rates deferment. This Bill removes the necessity for rates deferment to be registered on the property title. By abolishing the registration requirements, eligible owners will be saved considerable inconvenience, not to mention hundreds of dollars in many cases.
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