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Legislative Assembly for the ACT: 2002 Week 11 Hansard (26 September) . . Page.. 3391 ..

Department of Treasury

(Question No 293)

Mr Humphries asked the Treasurer, upon notice, on 25 September 2002:

In 2002-03 Budget Paper No. 4, it is estimated that expenditure on Grants and Purchased Services for the Department of the Treasury will increase from $33.862 million in 2002-03 to $41.732 million in 2003-04:

1. What is the reason for the increase of around 23 per cent in this item of expenditure.

2. Why will this increase not be continued into the 2004-05 and later years.

Mr Quinlan: The answer to the member's question is as follows:

(1) There has been a significant pull forward of revenue from 2002-03 into 2001-02, resulting in a large variation between 2002-03 and 2003-04. The table below illustrates that the 2001-02 outcome is significantly higher than the forward years. This is due to the Commonwealth offering an additional grant in the First Home Owners Scheme, above the original scheme, in 2001-02. This resulted in applications being pulled forward from 2002-03 to 2001-02, taking advantage of the additional grant.

Due to this pull forward effect, and the removal of the additional First Home Owners Grant, the Commonwealth has estimated a decrease in 2002-03 applications.

The 2003-04 estimates largely reflects the Commonwealth indicating that First Home Owner Grants will stabilise in 2003-04.

(2) The increase is not continued across the forward years as the Commonwealth is not indicating any significant change in the First Home Owners Grant program.

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