Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .

Legislative Assembly for the ACT: 2003 Week 13 Hansard (27 November) . . Page.. 4788 ..

MR QUINLAN (continuing):

It is the nature of any rating system to require frequent amendments to maintain its relevance. This bill incorporates and rationalises the rating provisions of the Rates and Land Tax Act and the concessions from the rates relief act. A second stage of this rationalisation process will be necessary to address any policy and administrative changes that may be required to further streamline the legislation and the rating system. This bill provides the basis for that second stage to more easily address policy issues and implement any further amendments.

The Land Tax Bill provides for the imposition of land tax, its payments and exemptions from liability. Land tax is imposed on the basis of the use made of a property or on an owner which is a corporation or trustee, rather than on owners solely as a consequence of their ownership. As such, land tax is based on an entirely different policy concept from rates and the Land Tax Bill is necessary to provide standalone legislation.

The only major change resulting from the passage of these bills is that both rates and land tax will now be administered under the Taxation Administrative Act in line with all other ACT tax legislation. The assessment of tax liability, refunds, collection of tax, record keeping, general offences, tax officers, investigation and secrecy provisions, and objections and appeals will be taken over by the Taxation Administration Act.

There are, however, provisions in the rates bill specific to rates administration. Some of these are: the calculation and remission of interest, no penalty tax imposed on a tax default and no loss of right to pay by instalment if a payment is overdue. I would also like to point out that the calculation and remission of interest provisions remain with the land tax bill. However, the failure to pay land tax will be a tax default and penalty tax will be assessed under the provisions of the Taxation Administration Act, as is the case with other tax laws.

In line with other tax laws and to remove the necessity to amend the act to change variable factors, the amounts and percentages used to work out rates and land tax will now be determined by disallowable instrument. As you know, Mr Speaker, this still allows the Assembly to scrutinise the changes.

The schedule to this bill contains amendments to the Taxation Administration Act to include the Rates Act 2003 and the Land Tax Act 2003 as tax laws for the act. It amends the objection and appeal provisions to include decisions prescribed under tax law. The schedule also repeals the Rates and Land Tax Act, the rates relief act and associated regulations and determinations.

These bills also contain transitional provisions to ensure that all existing assessments, debts, deferments, rebates, applications, decisions and objection and review rights under the repealed acts continue as if they had occurred under the new acts. The provisions of the Rates Act 2003 and the Land Tax Act 2003 will commence from 1 July 2004 and I would like to emphasise that no ratepayer will be disadvantaged by this change in administration or the introduction of these bills. As the bill contains no significant policy change, there are no direct or indirect revenue implications. I commend the Rates Bill 2003 to the Assembly.

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

Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .