Page 3200 - Week 08 - Wednesday, 22 August 2012
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So it is important that the government get the language right—that when they say, “We’re releasing blocks,” they are actually blocks that people can build on and get access to.
On page 22 of the report there is the end of a section that starts on the previous page about the land rent scheme. There is some commentary there. In paragraph 3.9 it says that the committee notes that the two-year post-implementation review of the land rent scheme was included in the scheme’s original policy. Apparently that has been done. It cost the government $36,000—or should I say it cost taxpayers $36,000? The committee thinks it is time that the government release that report and hopes that it will be released by the last sitting day in August; that would be by Friday. It will be interesting to see whether the government will release that report or not. One would imagine that if it was a favourable report they would release it. It will be interesting to see whether or not that is now made available.
On page 24 there is a section regarding the reform of the ACT’s taxation system. It is worth reading paragraphs 3.19 and 3.20:
Whilst the proposed phasing out of conveyance duty has a number of benefits, for example, people wanting to move house may be pleased with the proposed reform, as might those wanting to buy into the lower end of the market, and households wanting to downsize will have an incentive, particularly if their home is located in an area with high land values. Conversely, those on fixed incomes will have an increased rates bill and those in retirement, who are asset rich and income poor, may have no other option than to sell their homes prematurely. More generally, investors may be driven towards the lower end of the market and in terms of property construction, a different type of construction standard may be encouraged …
The Committee is of the view that this proposed taxation reform has the potential to impact on residential land supply and development in a number of ways, and in some cases, with adverse consequences.
The committee here is suggesting that there be a review two years after the implementation of the tax reform.
But it does go to some of the things that were said, for instance, in the estimates committee. A number of groups, like Shelter, the Youth Coalition and the elected body, said basically that housing affordability had deteriorated and was perhaps the worst that it had ever been in the ACT. When you link a number of the things that are happening with tax reform and the poor record on land release, you do have to question the management of this government in regard to one of the most fundamental services that the government offers—land for people to build their homes on.
It is a report that is worth a read. There are nine recommendations there, and we look forward to the government’s response.
Question resolved in the affirmative.
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