Page 2846 - Week 07 - Thursday, 7 June 2012
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If we take that as a base and compare the existing concession schemes against the proposal contained in the budget, we find the truth. For a first homebuyer of an established home, with total income just under $120,000—the same income described as “average” in the cost of living statement—the changes are as follows. If they bought a $350,000 home, currently they would be charged $20, the full concession. Under the new scheme that same couple would be charged $10,925. That is a $10,905 increase in their stamp duty. Buying a $400,000 home, around the average for a first home, they would pay $4,963 under the current concession arrangements; under the proposed changes they would pay $13,300, or an $8,338 increase over current arrangements.
So much for abolishing stamp duty. In fact, according to the budget papers, the very same budget papers that promote the reform of reducing stamp duty, the stamp duty collected over the outyears increases. As my colleague Brendan Smyth remarked, it is the only abolished tax in the world that actually collects more money.
We have seen the unravelling of this budget on the first day. We heard, less than 24 hours after the budget was handed down, that two major projects had decided to pull out from Canberra. Then we heard from the Treasurer that that was not the case. What had changed? What had changed was that this budget reform was collapsing and Andrew Barr, on the first day of his first budget ever, caved in on his reforms.
What sort of operation is this? Not only is it incompetent; it is inequitable. Will there be variations for those who paid the full stamp duty on their home the day before the announcement? Or is that only for the big players? This is amateur hour at its worst—incompetent, inconsistent, in trouble.
However, it is not the only aspect of this new tax reform which is causing us concern. Rates, as has been shown, have increased by around 85 per cent since this government took power—just one of the cost of living creeps that have put strain on the family budget. Next year another 9.6 per cent will be added to that number. The Treasurer has once again reached for his “average” number and has been telling the people of Canberra that the “average” cost of living increase is $2 a week.
He has not been telling the real story. The real story is of far greater increases, especially for those in established suburbs with suburban backyards—the family homes in Canberra. The real costs are these: in Ainslie, an average increase of $390 or 22 per cent; in Aranda, $264 or 16.5 per cent; Chapman residents will be hit for an extra $248; Curtin, $286; Garran, $322; Hackett, $250; Hughes, $313; Narrabundah, $283; Torrens, $209; and Weetangera, $255.
And a crucial point: those are averages. If that average includes apartments and units, the increases for those with the family backyard could be much higher than has been promoted. Another crucial point: that is just next year. These rates will continue to go up during the entire next term should Labor be re-elected. Over the outyears this government intend to raise hundreds of millions of dollars from rates. By their own budget numbers, the $200 million they intend to raise next year will double by the end
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