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Legislative Assembly for the ACT: 2003 Week 6 Hansard (17 June) . . Page.. 1868 ..
MR SMYTH
: I move:That the report be authorised for publication.
Question resolved in the affirmative.
MR SMYTH
: I move:That the report be noted.
The Public Accounts Committee was asked by the Assembly in April this year to inquire into and report on the Rates and Land Tax Amendment Bill 2003. That is the bill that would implement a new rating system for the ACT. I will not describe in detail the principles of the proposed new rating system other than to note that home owners who are determined to be long-term owners of their residential or rural properties would be protected from paying rates that might otherwise be subject to considerable fluctuations.
New owners of these properties, on the other hand, would be subject to rates that are typically likely to be considerably higher than those paid by long-term owners because of the way in which the rates for new owners will be calculated. The Public Accounts Committee undertook a reasonably detailed inquiry into this important matter, and I acknowledge the time constraint under which the inquiry was conducted.
As members will be aware, rating systems are a much examined subject in virtually all jurisdictions, as we all seek to implement a system that combines such essential characteristics as fairness and equity across the whole community with, of course, the appropriate revenue raising capacity to fund the services of the ACT. In the ACT and elsewhere, we are still waiting for the perfect system to evolve. So where did our recent inquiry take us, and what did we conclude?
We received evidence from a wide range of witnesses: the Treasurer, a number of organisations and some interested individuals. These organisations were from right across the spectrum that you would expect-from groups like ACTCOSS, CARE ACT and COTA to the Real Estate Institute of the ACT and the Property Council. A wide and diverse group of people took the opportunity to comment on the bill.
The majority of submissions the committee received argued that the new rating system could have an adverse economic and social impact on many people, including people who were already disadvantaged: recent retirees, families that are increasing the number of their members and people wishing to relocate within the ACT. On the other hand, some submissions acknowledged that long-term residents-that is, people who choose not to move from their present homes for extended periods-might benefit from the proposed new policy.
Modelling undertaken by some of the organisations indicated that after a period of five years, and especially after longer periods, there would be an ever-widening disparity in the rates paid by long-term owners as compared to new owners-who are indeed neighbours. It was suggested in these submissions that these disparities could lead to the creation of economic and social inequities in our community. In presenting this bill to the
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