Page 3818 - Week 13 - Tuesday, 4 December 2007
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In the past two years, the ACT government has introduced the utilities tax and the fire and emergency services levy and has increased the level of general rates, amongst many other charge increases. These revenue measures were justified on the basis that they were required in order to ensure that the ACT government did not go into deficit. It was required, according to the Chief Minister, because we were living beyond our means.
What happens when all this flood of money comes into the territory? The government says, “Let us spend more; let us not live within our means; let us spend more; and let us not give back to the people who have been burdened with the tax increases these extra amounts when the government has had the opportunity to institute tax reform.”
It was very interesting last night watching the new federal Treasurer, Wayne Swan, on television. And what was one of his selling features that he said was going to be an important feature of his government? It was actually keeping the tax burden down on lower and middle-income families in Australia. So whether you are on the Liberal side of the federal political scene or on the Labor side, it seems that getting taxes down and putting money back into people’s pockets is the philosophy across the spectrum.
But not when you come to the ACT! The attitude is: increase the tax margins, put more into the government’s coffers and, as you get within striking distance of an election, especially when you are falling in popularity, start spending up big and hope you can buy your way back into government. I think it is a recipe that will be doomed for failure, as we will see next October.
Looking at the quarterly reports, the September quarter 2007 consolidated financial report showed that the period to September 2007 has seen the ACT government receive $92.425 million in excess revenue over and above the amount budgeted in the 2007-08 budget. Indeed, of this amount, $46 million was due to tax revenues in excess of the budgeted amounts. In particular, the ACT government received $19.8 million more than budgeted in residential conveyance revenue and received $11.8 million more than budgeted in commercial conveyance revenue. It received $7.4 million more than budgeted in stamp duty on shares and marketable securities, and it received $6.8 million more than budgeted in general rates.
The story is very evident. This government is raking in taxes on all fronts, increasing charges on all fronts and swimming in money, but they will not give back to the people of Canberra some reduction in that burden. We hear the Chief Minister get up here and talk about six increases in interest rates impacting on some 70 per cent of the Canberra community. We hear of more interest rate increases likely in the new year—and the Chief Minister has been happy to take political advantage of those increases—but when it comes to him doing something to reduce the burden, forget it; all bets are off. We see here a government that is simply ignoring the pressures on Canberra households where they are paying more and more in terms of interest on their home loans, where they are going to be paying more and more on credit card debt, which is a significant issue in the ACT according to published statistics, but this government does not want to do anything about reducing the pressure.
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