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Legislative Assembly for the ACT: 1997 Week 5 Hansard (13 May) . . Page.. 1341 ..

MRS CARNELL (continuing):

It is true, as Ms Tucker and others have said, that in the short term this approach really does not pick up a lot of revenue at all, but in the long term, and that is what we have to think about here, the impact of not capping rates becomes significant. We all know that Canberra's population is ageing. The Bureau of Statistics has advised that the number of residents aged over 65 is expected to rise from 22,500 this year to 25,500 by the year 2000, and to 38,500 by the year 2010. If we allow this situation of a 50 per cent rebate which is uncapped to continue into the longer term, we are going to end up with a significant problem in our revenue area. We simply cannot allow it to go unchecked. Rosemary Follett understood that. Certainly, ACTCOSS understands that as well. If it is left to go unchecked, the amount of rates revenue rebated will become a major drain on ACT revenue.

Mr Speaker, we believe strongly that the $250 is very much in line with other States and with the sorts of rebates that are given in other parts of Australia. As much as it would be nice to maintain the current scheme, I think in this place we all have to look to the future and look to what could cause a very real problem for the ACT down the track. As I said before, we have upgraded our deferral approach. We have made it easier to access. We certainly will be marketing that approach via ACTCOSS and via the ACT Government, to ensure that pensioners are aware of their rights to defer.

I certainly commend the Bill to the Assembly and I suggest that Mr Whitecross's amendments are short-sighted. It is political opportunism in the extreme; any effort whatsoever to oppose anything the Government puts forward, Mr Speaker. This Bill does not give us any revenue or much revenue in the first year. It will be a quite long time before it does, Mr Speaker. It is certainly not something that you would suggest is a vote winner for the Government, I would have to say; but it is an approach that the Government has taken because it is important that we, as a Government and as an Assembly, have a long-term view of revenue in the ACT. Wherever possible, we must make sure that our taxing approach is fair, equitable and properly targeted, but also keep in mind the long-term best interests of the ACT.

MR WHITECROSS (Leader of the Opposition) (6.25): I am surprised that Mrs Carnell thinks that I oppose everything she does just for the sake of it. I am actually supporting most of the provisions of this Bill. I also am surprised to hear Mrs Carnell say how concerned she is about fairness, because my only motivation in opposing this provision is to do with fairness. As I said before, and I will be brief, this is not going to raise a lot of revenue for the Government, but it will cause hardship for individuals who are caught by the new rules. I believe, Mr Speaker - - -

Mrs Carnell: Nobody loses anything they have currently.

MR WHITECROSS: Mrs Carnell says nobody will be caught by the new rules.

Mrs Carnell: No, I did not say that.

MR WHITECROSS: That is simply not the case. Existing pensioners will not be caught by the new rules, but lots of pensioners will experience hardship as a result of these rules. The circumstances of those new pensioners ought to be taken into account, their hardship ought to be taken into account, by a government which claims to be

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