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Legislative Assembly for the ACT: 1997 Week 3 Hansard (10 April) . . Page.. 839 ..

MRS CARNELL (continuing):

Mr Speaker, for these reasons, the Bill revokes the provisions which allow rebates on the grounds of financial hardship. Any owner seriously affected by this revocation can seek to defer their rates or seek assistance under the justice and equity provisions of the Rates and Land Tax Act. These justice and equity provisions allow the Minister to remit or refund rates charges where it is considered to be just and equitable to do so.

The second of the anomalies relates to the provision of rating subsidy to owners of properties in certain areas of the suburbs of Kingston and Griffith. In the early 1970s parts of Kingston and Griffith were designated as the "Kingston-Griffith Redevelopment Area". Planning approvals were intended to encourage the development of medium- and high-density dwellings. Accordingly, residential properties within the redevelopment area attracted a redevelopment potential component which increased land valuations for single residential properties. In order to discount the redevelopment potential, the Act provided for notional values to be determined for properties used as single residential dwellings. Notional values discount all redevelopment potential and are used to calculate rates and land tax. There are now less than 100 properties with notional values. Of these, approximately one-half no longer have any redevelopment potential as the true valuation and the notional valuation are now identical. The majority of the remainder are owned by either the Commissioner for Housing or developers.

Mr Speaker, it clearly was intended that this legislation protect residents from massive rate increases caused by government redevelopment policies but not provide developers with windfall gains by providing rating concessions not available to the wider community. Private owners of properties affected by this decision may seek assistance under the deferment provisions. The redevelopment potential factor has also decreased over the years as the gap between true and notional values has generally decreased. In fact, as I have mentioned already, approximately one-half of the properties that still have notional values have no redevelopment potential at all in valuation terms. For these reasons, the Bill revokes that part of the Act which deals with notional values and the Kingston-Griffith Redevelopment Area.

In summary, this Bill implements announced Government policy in introducing capping of pensioner rates concession, it introduces a number of benefits for pensioners and the financially disadvantaged, and it removes two unnecessary anomalies in the ACT rating system. Mr Speaker, I commend this Bill to the Assembly.

Debate (on motion by Mr Whitecross) adjourned.

MR HUMPHRIES (Attorney-General) (10.50): Mr Speaker, I present the Bail (Amendment) Bill 1997, together with its explanatory memorandum.

Title read by Clerk.

MR HUMPHRIES: Mr Speaker, I move:

That this Bill be agreed to in principle.

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