Page 2288 - Week 08 - Tuesday, 28 August 2007
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is to see some of it given back. He relies for his defence on the fact that the commonwealth government has made a substantial surplus above estimates. But the one profound difference between the commonwealth and the ACT government is that the commonwealth has been repeatedly delivering tax reductions to the people of Australia, not to mention the economic prosperity we have all enjoyed under the 11 years of the Howard-Costello administration.
We would like to see in the territory some measure of taxation relief rather than see the government horde this for an election campaign. I urge the territory to hear people’s complaints. This is not seen as a matter of praise in generating greater than forecast surpluses, but it is adding pain to the concern in the ACT community over the stretched household budgets.
Taxes in the ACT continue to rise at a substantial rate. There certainly has been no relief provided by this budget. In 2007-08 taxes will rise by 4.8 per cent to $924 million. This is an extra $42 million in tax compared to the current financial year. Among these taxes are the following: general rates will increase by five per cent to $165.7 million; land tax will rise by 14 per cent to $72.4 million; payroll tax will rise by nine per cent to $239 million; the fire and emergency services levy will rise by six per cent to $21.7 million; and traffic fines will rise by 44 per cent to $20.4 million.
This increase in taxation is at a higher rate than the growth of the ACT economy as set out in the budget. The budget shows that the ACT economy is expected to grow by 2.5 per cent in GSP this year. This is below the rate of the growth expected for Australia as a whole and is about half the rate of growth of ACT taxation. As I have previously stated on many occasions, the government has taken the rather remarkable step of indexing rates and charges to WPI in order to increase taxation above inflation. This will ensure an increase in taxes in real terms every year and, of course, this figure is compounding.
In answer to a question on notice on 31 May 2006 the Treasurer revealed that the average household in the ACT will pay an additional $145 in rates and charges in this financial year due to tax measures introduced by his government in the previous budget. This is on top of a $150 increase last year.
The government has consistently rejected calls for a review of land tax, which is at a punishing level. Indeed, according to figures from the Property Council of Australia given in estimates hearings, a quarter of a million dollar block of land in the ACT will cost its owner $2,800 a year in land tax. This compares with $1,200 in Tasmania, $420 in South Australia, $300 in Victoria and nothing in other Australian jurisdictions.
In other words, on a block of land like this the ACT government taxes landowners more than double the amount of the second most expensive jurisdiction, more than six times the amount of the third most expensive jurisdiction, and more than nine times the amount of the fourth most expensive jurisdiction. Not surprisingly, this little gem of information is not part of the ACT government’s affordable housing plan.
Debate (on motion by Mr Hargreaves) adjourned to the next sitting.
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