Page 2419 - Week 08 - Thursday, 6 June 2013
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land tax, land tax is expected to increase by five per cent. Revenue from traffic infringements fines is slotted to increase by 28 per cent, parking fines seven per cent, and court fines a whopping 204 per cent. The numbers for these are big. Taken as a whole, user-pays government services alone will cost Canberrans approximately $437.8 million.
But let us go back to the rates, Mr Assistant Speaker. This budget has been illuminating in some respects. Take for example the fact that in the last two days we now have better clarity of the fact that although this government will abolish stamp duty in the next 20 years, it will start tripling your rates in less than 12 years. Mr Barr repeatedly mentioned yesterday that Canberrans move house an average of once every seven years. The Treasurer claims that this is a broad-based and equitable tax reform. Yet it is a cunning plan to shift the tax burden from homebuyers to home owners. Truth is, raise people’s rates unreasonably—never mind tripling them—and they may not be able to afford to even own a home, let alone buy a home.
Recall the Treasurer’s recent tax reform bill last May where he expanded the eligibility rates deferral criteria for home owners 65 and over. It foretells that people will have problems keeping up with this government’s rates increases. What is insidious is the fact that Mr Barr’s only solution is to put Canberra seniors in indefinite debt, and with an interest charge to boot—a death tax.
Yet with all these increased charges and rates, what do Canberrans get in their neighbourhoods? According to the budget papers, two residential street improvements. That is all—Maribyrong Avenue in Kaleen and Sternberg Crescent in Wanniassa. I think Canberrans deserve more bang for their buck.
Let us look at the business sector and commercial rates. Let us not forget that businesses who employ and pay taxes are a valuable part of our community. But this year they will be experiencing rate increases of about 20 per cent to compensate for Mr Barr’s tax reforms. This is what the ACT and Region Chamber of Commerce and Industry has to say about that:
The feedback from our members is that business is really struggling at the moment. We are aware of a number of businesses that are finding that they are having to retrench employees ...
Remember, members, that we are only in the first year of this government’s plans to triple your rates. Then, of course, there is the looming budget black hole. Added to this, you have the potential of a $436 million budget black hole as a result of ACTEW ceasing to pay dividends should the ICRC recommendations to reduce water and sewerage household costs to $230 per year be adopted. This is not a trifling sum of money for Canberra households. Making up $436 million amounts to an additional $3,000 slug to household budgets through increased charges and further cuts to core services.
However, the issue of ACTEW goes further than this. As of today, we learn that it is requiring 34 senior operational managers to re-apply for only 26 new positions,
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