Page 3035 - Week 10 - Wednesday, 14 August 2013
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
We have also provided assistance, through this year’s budget, for the no-interest loan scheme to support those who are unable to access mainstream credit, enhanced the energy efficiency improvement scheme and provided funding to reduce public dental waiting lists. All of this goes to create fairness in our society and to ensure that we are targeting our assistance to those most in need.
I will spend the remaining time available to me today to touch on the government’s taxation reforms, which are also aimed at creating a fairer society. In last year’s budget I unveiled a reform package to make the taxation system simpler, fairer and more efficient. We do so in a revenue-neutral way. Reforms were made in the first year to the general rates system to make it more progressive. One-quarter of all households in the territory received a general rates cut. The previous system levied rates at the same rate on all properties regardless of their unimproved value. The government has introduced a system of marginal tax rates to make the collection of residential and commercial rates more progressive, not dissimilar to the principles that apply for income taxation.
For the residential sector, four thresholds and rating factors were introduced from 1 July 2012. The four thresholds introduced last year continue in 2013-14, but there have been changes to the rating factors for each threshold and the fixed charge. The 2012-13 budget also made commercial rates more progressive. Three thresholds and marginal rates were introduced. The thresholds remain the same in the 2013-14 budget but with changes to the rating factors. This budget builds on the significant changes last year by continuing to use general rates as the most efficient mechanism for raising tax for the territory government. The rates rebates scheme has been expanded, as has the rates deferral scheme.
But importantly, we are cutting and abolishing a number of the most inefficient and unfair taxes that are levied in this country. Getting rid of tax on insurance is a priority for the government. Cutting conveyance duty on every single property in the territory is also a priority. And this is particularly important to allow younger Canberrans to get into their first home and also for older Canberrans who wish to downsize. We are removing that barrier of stamp duty. Slugging people $40,000 or $50,000 upfront is not fair and should be changed. And that is what the government is doing.
The tax on insurance is unjust. It is taxing a product that we all should have. We should not be putting a tax on that product, and we are getting rid of it. And we are the only jurisdiction in the country to do so. But everyone will be paying 10 per cent less on all of their insurance premiums in three years’ time when this reform is complete. And that saves households and businesses thousands of dollars a year.
In a boost for renters, the 2012-13 budget reduced land tax for three-quarters of the rental properties. An average saving of $208 a year on land tax and lowering of insurance duty made it more affordable for Canberrans to take out insurance. The land tax changes have ensured that those landlords are able to either minimise or reduce rents that they charge in this city. And we have seen evidence in recent data that shows that rents are stabilising and falling in some places. So the taxation reforms are making our city fairer, not just for today but for decades to come. It is an important reform for this territory.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video