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Legislative Assembly for the ACT: 2000 Week 5 Hansard (11 May) . . Page.. 1422 ..

MR HUMPHRIES (continuing):

Mr Speaker, this bill will amend the provisions of the Rates and Land Tax Act 1926 that levy land tax on residential properties with multiple dwellings. In this bill, "multiple dwellings" refers to properties with more than one residence where there is only one legal land title. It includes flats, dual occupancies and houses with granny flats, but does not include units registered under a unit title plan where separate legal title exists for each residence.

At present, for land tax the commissioner has the discretion to apportion the unimproved value on a fair and reasonable basis, having regard to the floor area rented. In practice, the commissioner uses a set formula to apportion the value. The bill replaces the commissioner's discretionary power with a statutory formula to apportion the value. The formula apportions the unimproved value by using the ratio of the floor area of the rented dwelling to the total floor area of all dwellings on the property. This formula is consistent with that used for assessing general rates and land tax on units that are registered under a unit title plan.

Mr Speaker, the bill defines "dwellings" so that it excludes garages, carports, gardens sheds, verandas, pergolas and patios or any other non-habitable structures. The bill will also give the commissioner the power to ask for information about any dwelling on the property to assist in calculating a portion of the average unimproved value in accordance with the new formula.

Although the land tax revenue from residential properties with rented multiple dwellings is small, these amendments will protect the land tax revenue base and result in a consistent approach to the application of land tax for all affected residential properties. As land tax is levied quarterly, the commencement of the bill should be from 1 July 2000 to coincide with the first quarter of the 2000-01 financial year.

In summary, this bill ensures that the formula currently used in the calculation of land tax for multiple dwellings is incorporated in the legislation. The formula is consistent with the calculation of land tax for unit titles and other rented residential properties. I am sure that Assembly members would agree that that is a fair and just approach to this issue, and this bill provides certainty to land tax payers. I commend the bill to the Assembly.

Debate (on motion by Mr Quinlan ) adjourned.

Mr Humphries: Mr Speaker, on a point of order: I draw members' attention to a parliamentary convention about the reading of newspapers in parliament. Perhaps Mr Stanhope is not aware that there is a convention about it which, I understand, is incorporated in our conventions from House of Representatives Practice. I draw it to members' attention in case they are not aware of it.

MR SPEAKER: Thank you.

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