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Legislative Assembly for the ACT: 2003 Week 4 Hansard (1 April) . . Page.. 1185 ..

MS DUNDAS (continuing):

Now the government is investigating permanently capping rates increases to CPI for home owners of 12 months standing, with the stated goal of making the rates system fairer. I have grave reservations about this proposal, in the absence of evidence that rates capping will be means tested.

Mr Quinlan: I take a point of order, Mr Deputy Speaker. I appreciate the wording of the MPI, but if we are getting into debating the proposed new system I think we are anticipating a bill on the notice paper.

MS DUNDAS: On that point of order, Mr Deputy Speaker, it is my understanding that there is nothing currently on the notice paper about the rates scheme.

Mr Quinlan: We are going to have the debate twice or three times then.

MR DEPUTY SPEAKER: Maybe. The bill is not yet on the notice paper, in which case there is no point of order.

MS DUNDAS: There is nothing on the notice paper about the rates system, but I believe it is important that we have this debate now.

The proposed rates system has been circulated publicly. If we are to have an impact on the decision-making processes of government before the budget is tabled in the next sitting week, we need to have this debate.

My understanding is that the government is proposing that from 1 July 2004 rates for new residential owners be calculated using the AUV but that property owners who have held a property for more than 12 months pay last year's rates plus CPI. I believe that this proposal is manifestly unfair.

The government's proposal seems to assume that people have a real choice about when they move house, and that they can decide not to move if they cannot afford a higher rates bill that is based on current unimproved value. But in reality people do not always have a lot of choice about whether or when they have to move house.

Common reasons for moving include a relationship breakdown and the need to move into bigger premises because of the birth of another child. These events bring enormous financial strain. To hit these households with higher rates bills than their well-off neighbours does not seem fair.

The modelled impact of the government's proposal to cap rates to CPI for the longer term is an average saving of $323 per annum per property for home owners in South Canberra, which is our wealthiest area. Presumably the savings for homes in our most expensive suburbs will be dramatically higher than this average figure. Yet households in Belconnen will save only $89, and in Tuggeranong the savings will be a tiny $56 a year under the CPI capping proposal. I see the Treasurer frowning at me, probably wondering where I am getting this information from. It is a Department of Treasury briefing that these figures are coming from. They are not figures I have randomly calculated myself using the amazing AUV system. They are the government's own figures.

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