Page 1836 - Week 06 - Thursday, 9 May 2013
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suggestion made by the shadow treasurer of there being some sort of de facto death duty, it is interesting that the Liberal Party position is to slug people repeatedly whilst they are alive and repeatedly if their circumstances change.
For example, if you happen to be in a relationship that ends, that forces you to sell your house and your financial circumstances change dramatically for the worse, the Liberal Party will be there with their hand in your pocket taking stamp duty time and time again. That is their preference. They want to tax you repeatedly whilst you are alive. That is their position. They want to ensure that young people, that people who are forced to move house, get taxed heavily by stamp duty. It is an inefficient tax, it should be abolished and I am pleased that this government is beginning that process.
Another key element of our tax reform has been to reduce payroll tax on ACT businesses. The ACT now has the lowest payroll tax requirement for small and medium sized businesses in Australia. That is a very competitive proposition to put to the 25,000 small and medium sized businesses in this city. We have sought to make the general rates system more progressive. So a quarter of all households in the ACT had a cut in their rates last year.
In addition, we made changes to concession programs delivered by the government. These concession programs were amended to provide more targeted assistance to households most in need. There was a particular increase in concessions for pensioners and for low income earners.
Specifically, this bill amends the rates and land tax legislation to formally abolish all reference to land tax on commercial properties, to formally amend the calculation of general rates and the fire and emergency services levy to remove the tax-free threshold, and to expand the eligibility criteria for the rates deferral scheme to allow self-funded retirees to access the scheme for the first time.
Effective from 1 July 2012, commercial land tax was abolished and rolled into commercial general rates. This has reduced red tape for ACT businesses and is a key tax simplification measure. While no land tax has been levied on commercial properties since 1 July 2012, the Land Tax Act 2004 currently contains reference to land tax on commercial properties. This bill seeks to abolish all reference to commercial land tax in the Land Tax Act 2004.
Making general rates progressive improves the efficiency and the equity of the territory’s taxation system. It is almost a core element of faith for the conservative parties around wanting flat taxation. They want to ensure that poor people pay more in tax relative to their income than rich people.
Mr Smyth: What rot!
MR BARR: That is basically your core philosophical belief. So to the extent that you are being consistent with that, shadow treasurer—
Mr Smyth: What absolute rot!
MR BARR: That is your position, and that is exactly—
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