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Legislative Assembly for the ACT: 2000 Week 6 Hansard (23 May) . . Page.. 1583 ..
the introduction of speed cameras late last year, the government has allocated $305,000 for the purchase and operation of another two cameras, and the coverage area will be widened.
Tax Changes
Mr Speaker, the substantial increases in Commonwealth payments to the territory are again the major items on the revenue side of the budget this year. This budget forecasts a two per cent increase in revenue during 2000-2001, but, except for government fees and charges which will attract GST, this growth comes about with no increases above CPI in the general area of government taxes.The government will accept a recommendation of the Standing Committee on Justice and Community Safety to increase the victims assistance levy on offenders from $30 to $50, raising $30,000 in a full year. In addition, in particularly good news for ACT businesses and others, there are a number of specific tax reduction initiatives that will begin to occur during this budget, and more that will occur in the next budget.
In 1998, the government introduced the insurance levy, which raises $10 million per year. Labor made its view known that the levy should be placed on rates, not insurance. That levy was introduced to offset the call on the budget for emergency services, which cost this community in excess of $35 million per year. Mr Speaker, in recognition of the fact that the government no longer has to sustain an operating loss of the magnitude that we inherited from Labor, the insurance levy will cease to apply after 30 June 2001.
To ensure that the full flow-on of the abolition of the levy reaches consumers, in the same way as it was passed on by way of price increases following its introduction in 1998, I will be asking the ACT Office of Fair Trading and the ACT Revenue Office to ensure a compliance program is developed for insurance companies, and the government will consider legislation to ensure consumer protection, if that is necessary, during the course of the next year. We justified the introduction of the levy on the basis of the territory's operating loss. Now that we have eliminated that loss, we abolish the levy. No loss-no levy.
Contrast that practice with Labor's form on petrol tax. Labor breached their commitment to withdraw a special, limited 3c per litre tax on petrol in 1992. When they left office in 1995, that tax was still in place.
Mr Speaker, the ACT government has sought to attract new businesses to Canberra in recent years to diversify our private sector and employment base. That strategy was a very successful answer to the significant public service cuts this city has had to wear from federal governments of both persuasions since self-government.
As I announced in the draft budget, the payroll tax threshold will rise from $800,000 to $900,000 on 1 January 2001, meaning that around 60 more businesses will no longer pay payroll tax. But, Mr Speaker, in an effort to continue the attraction of business to Canberra, and as a comprehensive measure to support growth for businesses already here, the payroll tax threshold will rise further in forward years.
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