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Legislative Assembly for the ACT: 2002 Week 8 Hansard (27 June) . . Page.. 2350 ..

MR HUMPHRIES (continuing):

Over the recent past, business in the ACT has responded well to pro-growth policies and active encouragement of investment. It is now clear that the business climate is in for a change for the worse. To make the outlook even bleaker for business, Labor is going to cut back on capital works and raise taxes. Some would say that if a downturn for business is foreseeable, the budget should have continued the previous capital works program of $214 million in value. But no, it has cut that back to $91 million. That is a cut of $123 million in business and employment opportunities in this town! No wonder the Treasurer warned the business sector that it would not be doing handstands over this budget. Indeed, Mr Deputy Speaker, business might well be alarmed.

Labor has reneged on raising the payroll tax threshold. Yes, I say reneged. I remind the government that it said in October last year, "Labor's promises are achievable without tax increases." What reasonable business person would not think this included payroll tax? Business was planning on a threshold increase to $1.5 million, but now Labor has changed the rules and, what is more, changed the rules just five days before those changes were to come into effect. Shame, Labor, shame. Payroll tax is a tax on jobs. It reduces the ability of firms to employ people. They deserved more notice than that.

The Treasurer said on 5 May that he would look at payroll tax because "I am not sure that we have the right structure". He also promised that any tampering with the ACT's payroll tax system would not mean any disadvantage to business. What has happened? The government has added the value of fringe benefits tax and eligible termination payment into the payroll tax base, thus effectively raising the rate of tax by an estimated 1.1 per cent. No disadvantage. All this at a time when other Labor jurisdictions across Australia are lessening their reliance on payroll tax.

Labor has increased the cost of buying a house by raising the stamp duty on conveyancing. This is a tax increase of $7.3 million on home buyers. This makes a mockery of Labor's pre-election claim that it would be a low-taxing government. What a joke!

Then, to rub salt into the wound: "Labor has established an affordable housing task force." Dear, oh dear! More tax. Labor is imposing land tax on residential properties owned by companies and trusts, even if they are not rented. Companies and trusts will pay an increase of 16 per cent in land tax. More tax.

Registration fees for all private and business motor vehicles will be increased by an average of $26, adding some $3.9 million to the government's pockets. There is nothing equitable about the way that occurs. The battlers in this community also drive cars, and, from now on, the cost of doing so goes up. I wonder how those adoring thousands who Mr Stanhope tells us voted for his party in droves will feel about his party the next time they go to pay their registration renewal.

Pay parking in Belconnen and Tuggeranong will affect families when they go shopping, and will also impact on retail businesses and those who work in shops. There is a danger that the main beneficiary will be retail trade in Queanbeyan.

This is also a bad budget for business because old Labor is back in control. The main so-called initiatives are typical of the old "tax them and bleed them" socialist left. Socialise land planning and development; anti-family car parking and car registration

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