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Legislative Assembly for the ACT: 1997 Week 3 Hansard (10 April) . . Page.. 838 ..

MRS CARNELL (continuing):

The Territory's interests will not be affected by non-registration of the deferment, as rates are a charge against the land and transfer with ownership of the land. Further, Mr Speaker, because liability for rates transfers with title to a property, a procedure exists which allows prospective purchasers to obtain rating details from the ACT Revenue Office prior to buying a property. Obtaining this rating information is a normal part of the conveyancing process. The information provided contains advice of any deferment and details of deferred charges.

Mr Speaker, the Bill will also provide assistance to an eligible pensioner who jointly owns a property with another person where that person, for whatever reason, cannot contribute towards the payment of the rates charges. The Bill makes it possible for an owner in this situation to have his or her rates rebate and deferment entitlements assessed as a sole owner.

Another issue addressed by the Bill covers situations where a pensioner, who meets all the eligibility criteria but legal ownership, has a life or term interest in a property conferred by a will or a court order and is required by the will or court order to pay the rates. In future such a pensioner occupant will be eligible for a concession equivalent to a pensioner rates rebate. Mr Speaker, there are cases where a property is jointly owned by an eligible pensioner and a non-eligible spouse. The Bill provides that in such situations deferment of the total unrebated balance of the rates will be available. The Bill also extends deferment and pensioner rebate concessions to parties living in a domestic relationship as defined in the Domestic Relationships Act 1994. This will eliminate any discrimination in administering rating concessions on the grounds of marital relationship or sexual preference.

At present an owner who is dissatisfied with a decision relating to a rates deferment may appeal that decision to the Administrative Appeals Tribunal. This process involves the payment of a $175 fee and may also be stressful for owners, particularly the elderly. The Bill provides another avenue of review by allowing owners to object against decisions. Under this process such decisions would be reviewed by the ACT Revenue Office by an officer other than the original decision-maker. Appeal rights are available where an owner is still dissatisfied with the results of the objection process.

Mr Speaker, the Bill not only addresses and rectifies a number of issues as already described, but also removes two anomalies that exist in the rates system in the Territory. The first of these anomalies is the provisions of the Rates and Land Rent (Relief) Act which allow rebate of rates on the grounds of financial hardship. These provisions were incorporated in the Act in the days before self-government when any shortfall in rates revenue was funded by the Commonwealth. Any such rebate given today represents revenue forgone. For this reason, such rebates are extremely rare, as every effort is made to recover the rates charges or to offer deferment of those charges. Significant costs can be involved in defending decisions not to approve rebates in these circumstances even where those decisions are ultimately upheld.

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