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Legislative Assembly for the ACT: 2004 Week 01 Hansard (Thursday, 12 February 2004) . . Page.. 292 ..

The opposition will also be supporting the Land Tax Bill 2003. Land tax is imposed on the basis of the use to which the parcel of land is put, or on an owner who is a corporation or a trustee, and this distinguishes the land tax regime from the rating regime.

I note that, as with the Rates Bill, this bill makes no significant policy changes and that it is revenue neutral in its effect. Further, as with the Rates Bill, the drafting of this bill has sought to achieve an outcome that does not change the underlying legal position arising from the application of the land tax regime in the ACT. As I said before, it is important for those to whom the land tax regime applies that they be able to comply with their obligations under this regime and, indeed, understand their obligations. At the same time, it is equally important to facilitate the efficient administration of this policy.

Mr Speaker, I want to make some comments on the administration of the land tax regime because I believe it is important that this Assembly understands the implications of an issue that has been raised with me about this aspect of this policy. A basic premise of the land tax regime is that it is determined on a quarterly basis, and I refer the Assembly to clause 9 (1) of the bill, which establishes this approach. I am aware, however, that a number of land owners choose to pay their land tax on an annual basis—that is, they choose to make an annual lump sum payment of their land tax. I assume those people apply to the commissioner under clause 42 to determine the annual land tax obligation for a given year.

The concern of which I have become aware is that the administrative system that supports the land tax policy does not appear to be consistent or compatible with a situation in which land owners make annual payment of their land tax. I have received complaints that, where annual payments of land tax are made, the current land tax processing system does not appear to be capable of recognising the fact of these payments. Hence, quarterly land tax assessment statements have been issued that are incorrect. I guess the annoying aspect of this situation, apart from receiving incorrect information, is the additional checking and verifying that land owners must undertake to establish the correct position with each property that is subject to the land tax.

There would appear to be an issue of a lack of flexibility in the current system that is supporting the land tax regime, and I would press the Treasurer to establish the facts of the approach to dealing with payments of an annual lump sum of land tax. Mr Speaker, the opposition will continue to monitor this aspect of the land tax system and, depending on the response to the issue of annual payments, will consider whether or not further action needs to be taken.

As I noted when speaking on the Rates Bill, it is essential that people who are intended to be subject to particular legislation must be able to understand their rights and obligations arising from that legislation. Equally, it is essential that the administrative process that support that taxing policy do so as effectively as possible while being consistent with the policy itself.

Mr Speaker, overall I believe the bill is a sound outcome to this process of reviewing the Rates and Land Tax Act. I have noted that there may be an issue on the payment of annual lump sums. However, we will be supporting both of the bills. So well done to the

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