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Legislative Assembly for the ACT: 2003 Week 4 Hansard (3 April) . . Page.. 1318 ..

MR QUINLAN (continuing):

Mr Speaker, the new rating system will provide certainty to long-term owners, as they will be able to determine and budget for increases in their annual rates bill so long as they remain in their house. People will be able to determine what their annual rates bill will be by increasing their previous year's bill by the actual CPI. Their rates bills will not be impacted by movements in property values.

The impact of movements in the average unimproved value will effectively be deferred until the parcel of land is sold. Therefore, long-term owners will not see large increases in their rates as a result of large increases in values due to their suburbs becoming sought after, for example, for redevelopment potential.

New owners of residential and rural land will receive the benefit of the previous owners' rates for the balance of the year in which they purchase the parcel of land, after which time they will pay rates based on the existing formula, incorporating the prevailing unimproved value for that parcel of land. The new owners will become long-term owners after owning the parcel of land for more than 12 months as at 1 July each year.

The existing concessions and deferments that are available to owners of parcels of land will be maintained under the new rating system, thereby ensuring that no-one will be disadvantaged. Concessions for pensioners are portable and move with them from one parcel of land to another.

The method by which rates for commercial parcels of land is calculated will remain unchanged under the new rating system. That is, it will incorporate the latest unimproved valuation.

The new rating system, Mr Speaker, will commence on 1 July 2003, with new owners subject to the new calculation on 1 July 2004. For 2003-04, rates for all residential and rural parcels of land (including units) will be charged at the 2002-03 rates plus CPI. Hence, all owners on 1 July 2003 will be considered long-term owners for 2003-04.

There are provisions in this bill which will change the method of calculating rates on unit subdivisions. Currently, the ownership of units rests with a body corporate, and changes in individual ownership of units does not change liability of rates imposed on the body corporate.

Under the new system, a new unit will be treated in a similar manner to a new lease. This bill also includes provisions that make members of an owners corporation, rather than the owners corporation itself, liable for rates. This is necessary in order to distinguish between new owners and long-term owners.

Mr Speaker, as promised, the government has produced in the new rating system a fair rates system for residential owners of parcels of land in the ACT. I commend the Rates and Land Tax Amendment Bill 2003 to the Assembly.

Debate (on motion by Mr Smyth ) adjourned to the next sitting.

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