Page 2475 - Week 09 - Tuesday, 6 August 2013
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The Committee recommends that the ACT Government freeze its implementation of the taxation reform until the modelling of the 20 year impact on residential and commercial general rates is known.
I again call on the government to table their modelling. It is important that that modelling does not exist. And when we only have evidence contained in the budget that shows that we are on a path to rates tripling in 11 years and we have a government that refuses to provide the modelling that shows any different solution to that, there is only one conclusion that can be drawn. And this is probably the nub of it:
The Committee recommends that the budget not be passed because of its lack of delivery, high levels of deficit and deceitful plan to massively increase commercial and residential rates.
Moving to the issue of debt—and this is a quote:
The Committee notes that in its public hearings with the Treasurer the budget deficit was also discussed. This is detailed in the budget papers, which indicate a ‘forecast General Government Sector Headline Net Operating Deficit of $253.6 million in 2013-14’ and a ‘forecast to surplus in 2015-16 and 2016-17’.
It is probably a bit like federal Labor’s forecast of surplus; we will never see it. But this budget hands down a structural deficit of $668 million over the forward estimates, that is, the government is spending $668 million more than it is receiving in income, knowing that income is going up massively by about $250 million a year. And when the effects of that superannuation investment are taken away, the projected surplus in 2015-16 and 2016-17 completely disappears. In fact, when you actually look at it without the effects of the superannuation account, this year we have a $424.4 million deficit; in 2013-14, it is $340 million; in 2014-15, it is $193 million, in 2015-16, it is a $71 million deficit; and in 2016-17, it is a $61.8 million deficit. That is how much this government is spending in addition to the revenue it is receiving, despite the fact that revenue is going up $250 million a year, so that in the last year of this budget it is receiving $1 billion more than it is now. So just like federal Labor, what we found in this report was that this government has a spending problem, not a revenue problem.
Another very substantive issue that was discussed during the committee hearings and is contained within the report is that of ACTEW. And since the budget has been handed down, it has been confirmed by the Treasurer that the bottom line will take a hit due to an expected decrease of the ACTEW dividend. But the Treasurer is not providing a revised estimate for us to debate in this chamber next week. He expects that the Assembly next week is going to pass a budget, knowing that the territory’s financial position is worse than is detailed in the budget. He expects Canberra taxpayers to wait until the midyear review handed down in February so that we can see the real financial position of the Treasury.
During the estimates period, the Treasurer stated:
Early indications are that it will be in the order of about a $20 million to $25 million adjustment.
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