Page 2954 - Week 07 - Wednesday, 30 June 2010
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it, as of budget day, applications and change of use charge outcomes are being done as we speak based on individual valuations for those residential redevelopments.
Mr Seselja: So they are paying $50,000 a unit in Braddon.
MS GALLAGHER: Well, no. What they pay is dependent on their individual valuations. It is not codified; there is not a codified schedule in place at the moment.
Mr Seselja: Yes, I know that. But you said it would be roughly the same.
MS GALLAGHER: I have not seen any of the valuations or the developments for which applications have been submitted. As I understand it, the process is in place now and we have applications that have been considered as part of that. They will have their change of use charges determined along the lines that the legislation outlines.
The government strongly believes that the change of use charge is a legitimate revenue stream for the government. It is not a large revenue stream, and I draw to the attention of members the fact that it jumps around a bit if there is a large commercial redevelopment and when there are periods of buoyancy in housing activity. It does move around a bit. But the extra revenue we are estimating to come through the 2010-11 year is only $10 million. That is what we estimate from individual valuations being done based on a five-year look over—
Mr Smyth: Why does it say 14?
MS GALLAGHER: I am looking at page 30 of the budget papers, which is the summary of movements from 2009-10. A part of that will be a movement from the previous system. We have outlined that we expect rectification of codification to increase the revenue to the territory as outlined on page 30 of budget paper 3. You can see that that is the movement we expect to see. A very small part of that in our forward estimates relates to the codification work, so I do not expect that codification will cause huge concerns for industry.
We will work with industry. The process in place is that the government will consider a very detailed submission around this, including a cost-benefit analysis and a regulatory impact statement. Obviously, we will make further decisions based on that. On the flipside, industry has also been asking for certainty, which codification offers them. Codification offers them the certainty that they have been seeking.
Obviously we want to work with industry, we want to update the Assembly, and we want to make sure that industry has its concerns addressed. We have already agreed to the recommendations 2 and 3, I think, of the estimates committee around this where we will provide a full evaluation of the impacts of codification and the change of use charge, including an assessment on the impacts of urban densification, a cost-benefit analysis and a regulatory impact statement as part of that. What more could the Assembly ask in terms of having an informed debate prior to debating legislation about the codification project.
Mr Smyth: You are going to provide all that to the Assembly?
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