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Legislative Assembly for the ACT: 2000 Week 6 Hansard (23 May) . . Page.. 1579 ..

community sector by 10 per cent, at a cost of $517,000 in the first year. It is necessary for all of these groups to be GST registered and have an ABN number in order to gain any benefit from this top-up.

I am also pleased to advise that the ACT club industry has agreed to larger clubs accepting a discount of the GST credit equal to the refundable credit amount payable to the smaller clubs to support the ongoing viability of the smaller clubs. This will help maintain the viability of some smaller clubs and maintain the current ACT concessional tax treatment introduced last year.

In addition, the government will provide $110,000 to insulate foster carers from any effects of the GST on the costs of them providing the care services, including rent or board and other consumables. Apart from these changes, Mr Speaker, the GST has made essentially no difference to the budgetary position presented in the draft budget.

The Draft Budget

On 17 January I released a draft of the ACT's 2000-2001 budget. It contained a range of initiatives aimed at improving services in health, education, police, public transport and the appearance of our city. It was a draft of our budget which achieved a $2.193 million surplus. Assembly committees and the community have had the best part of four months now to examine those estimates, and during that time they made recommendations to the government on how to improve the budget.

It is a matter of great regret that the Labor Party set out to oppose the draft budget process at every opportunity and would not accept the challenge which falls to government every year to not spend money it does not have. Labor squandered an opportunity to prove that they had changed from the fiscally irresponsible times of the past. Despite this approach, the government has not given up on a mechanism to consult the community, in advance, about budget priorities and directions. Some genuinely good ideas arose during the budget consultation process, and I will indicate that the government has accepted a number of them.

The Budget Overview

I turn to the budget overview, Mr Speaker. As I have already said, this budget is a balanced budget. A healthy bottom line is good, but so are the underlying principles upon which the budget is based. Expenditure is up two per cent on the current year's forecast outcome to $1.892 billion. Revenue is up two per cent on the current year, primarily as a result of Commonwealth grant increases and good performance in land sales, to $1.901 billion.

When this government commenced its plan for Canberra as a clever, caring community, we did so knowing we had to achieve a balance between catering for our city's basic needs and developing our city as one of the future. This budget continues that approach.

Moving the budget into surplus while ensuring higher levels of funding for essential community services means the community can receive the dividend from the government's five years of hard work. A stable and responsible budget and a real

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