Page 2222 - Week 08 - Tuesday, 4 June 2013
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Last year, my first Budget as Treasurer began the task of reforming the revenue side of the budget, through taxation reforms.
My second Budget continues the reform challenge by stepping up the process of critically reviewing expenditure.
The changes in this budget are balanced and responsible. They will ensure our public service is cost effective, targeted, high quality and directed to priority areas.
To continue to invest in transformative projects and deliver high quality services, the process of seeking out new efficiencies and new savings will be ongoing and embedded into the thinking of the public sector—the more efficiently we can deliver our services, the more services we can enjoy for any given level of taxation.
Savings initiatives in this budget total $142.6 million over the forward estimates.
This includes ceasing some programs, making savings across directorates, reprioritising spending to higher priority areas, and further improving government procurement.
Parks and City Services, ACTION, the Emergency Services Agency, and Corrective Services will be reviewed to ensure each is efficiently providing high quality services, including addressing demand management, service level provision, or other aspects of service delivery or program management—while, critically, maintaining quality services.
The Gallagher Government is meeting its promise to maintain the size of the ACT Public Service—overall staffing levels will remain stable in the coming years.
Fees for some services will rise to recoup more of the cost of providing these services. This includes raising the Victims Support Levy on traffic and court-imposed fines to fully fund support services for victims of crime.
Taxation reform
The Budget continues the Government’s nation-leading tax reforms, unveiled in last year’s Budget, to make our tax system fairer, simpler and more efficient, and, importantly, sustainable for the long run.
On July 1 duty on insurance premiums will be cut by a further 20 per cent. Duty on general insurance falls from 8 per cent to 6 per cent, and duty on life insurance drops from 4 per cent to 3 per cent.
A household with insurance premiums totalling $2,500 will save $100 in 2013-14 compared to before tax reform, and a business with insurance premiums totalling $20,000 will save $800 in 2013-14.
Insurance tax will be completely abolished by 1 July 2016.
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