Page 4129 - Week 13 - Thursday, 31 October 2013
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Own-tax revenue is a significant component of budget revenue, and the general rates and conveyance components are a significant part of own-tax revenue. The other significant components of revenue are, of course, commonwealth government grants, which include GST revenues. The own-tax revenue reform program should consider the potential for changing circumstances in regard to commonwealth funding arrangements and frameworks.
To illustrate this, a range of scenarios can be considered. For example, GST revenue is a major component of commonwealth funding; consequently ACT revenue is particular sensitive to the GST. A change in the ACT’s relativity from the current 1.2 to, say, 1.4 would result in an increase in revenue from this source of around $150 million in 2014-15, which is about 30 per cent of the revenue across these three lines. Equally, a two per cent reduction in ACT government expenditure, whilst preserving national partnership and specific purpose funding commonwealth grants, would free up about $80 million in 2014-15. These scenarios serve to illustrate the importance of the broader budget and fiscal context in designing a program of tax reform over an extended period.
The government will consider a range of options in managing its budget and advancing tax reform. The principles of our approach, however, will be to favour efficient over inefficient taxes, simple rather than complex taxes and fair rather than unfair taxes.
I commend the response to the Assembly.
Mr Smyth: Perhaps the minister could move that the paper be noted.
Mr Barr: I am responding to a motion of the Assembly.
Mr Corbell: It is not question time, Mr Assistant Speaker.
Mr Smyth: It is not a question; it is a standard point of order that goes on all the time in this place.
MR ASSISTANT SPEAKER (Mr Doszpot): Mr Smyth, would you please resume your seat.
Planning and Development Act—variation to the territory plan No 306
Paper and statement by minister
MR CORBELL (Molonglo—Attorney—General, Minister for Police and Emergency Services, Minister for Workplace Safety and Industrial Relations and Minister for the Environment and Sustainable Development): For the information of members I present the following paper:
Planning and Development Act—Variation to the Territory Plan No. 306—Progress of technical variations related to V306, dated October 2013.
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