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Legislative Assembly for the ACT: 1997 Week 6 Hansard (19 June) . . Page.. 1878 ..

MRS CARNELL (continuing):

Official data for 1995-96 indicate that there were 237 corporate insolvencies and terminations as opposed to 1 219 new incorporations in the ACT.

Over the twenty month period since the commencement of 1995-96, the ACT has averaged 19.0 corporate insolvencies and terminations and 112.0 new companies incorporated per month. This compares favourably with an average 19.3 corporate insolvencies and terminations and 94.1 new incorporations during the previous three years. This is despite the ACT economy slipping into recession as a direct result of the massive reductions in both spending and employment by the Commonwealth Government.

A further indicator that the general plight of ACT businesses has not significantly worsened despite the economic downturn is provided by the latest data on payroll tax collections in the ACT. Payroll tax collections are estimated to increase by $3.0 million during 1996-97, relative to 1995-96. This is despite a reduction in the tax rate imposed from 7.0% to 6.85% and an increase in the threshold from $600 000 to $700 000 from 1 January 1997.

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