Page 1392 - Week 04 - Wednesday, 28 March 2012
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
MR BARR (Molonglo—Deputy Chief Minister, Treasurer, Minister for Economic Development and Minister for Tourism, Sport and Recreation) (11.37): The government will be providing in-principle support to the Financial Management (Cost of Living) Amendment Bill. The government has always been mindful of the effect of its policies on families and households. We recognise the importance of information to the community regarding the impacts of government policy. The government knows that whilst we have a strong economy and labour market, the benefits of this prosperity are not always shared equally.
In principle, the government sees no reason why information of this sort could not be included in the budget papers, as is proposed in this bill.
Mr Seselja: This year?
MR BARR: Yes. However, the information provided should be relevant and meaningful. The explanatory memorandum to Mr Smyth’s bill says:
The analysis of the cost of living effect will be an estimate of the average effect on the average household for the following financial year.
The government knows that averages can often hide significant statistical ranges and not present a real picture.
The bill proposes to include in the assessment charges such as general rates and conveyance duty; land and payroll taxes; motor vehicle registration and driving licences; a utilities network facilities tax and water abstraction charge; and a fire and emergency services levy. A number of these charges do not legally apply to households, although they may incur some of the economic incidence. In addition, increases in costs of living may be offset—fully, partially or even more—by concessions for lower income households or be driven by changes in consumption.
The government has examined the detail of this bill and has taken further advice from Treasury on administrative requirements and the appropriate measures to be included. It is my expectation that the government will propose amendments to the bill to be considered at the next sitting of the Assembly. In this, the government will be guided by models used in other jurisdictions but we are particularly interested in the model used in the Western Australian budget papers. That model includes an estimate of the impact of taxes and charges on a standard representative household. Of course, characteristics of a representative household for the territory would be different from those in Western Australia, and appropriate adjustments would be needed. Nevertheless, the Western Australian model is worth considering as a starting point.
In summary, the government will support this bill in principle today but we flag that we will be bringing forward amendments that we believe can improve the bill. Once Ms Hunter has spoken, I will seek leave to move that, after the in-principle stage, the debate be adjourned.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video