Page 502 - Week 02 - Wednesday, 19 March 2014
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other words. There can be significant economic windfall gains from varying a crown lease, through change of use through to an increase in dwelling yield or, for example, an increase in floor area. It is therefore entirely appropriate for the ACT government to share those economic gains with the community as a whole and not entirely privatise those windfall gains in the property development industry. This supports the delivery of critical infrastructure to support urban infill and the redevelopment of parcels of land for other purposes.
In order to continue to encourage higher value development of land in the territory, the recently announced reforms of the LVC fee regime, which include some reductions in the charge for a limited period, have been enacted at a time when the economy and, in particular, the building and construction industry face pressure from federal Liberal cuts. The government will monitor industry activity within the construction industry during this period to assess the impact of these measures.
In relation to the opposition’s motion on LVC, the government indicated at that time it was considering LVC reform for stimulus purposes and that a further announcement would be made thereafter. The government has made that announcement.
It is worth reflecting on the effects of the government’s efforts to foster economic growth in the territory. Protecting the livelihoods of working Canberrans is and will remain a core priority of the government, and this reform package is consistent with the government’s long-term commitments to economic reform and fairness in our community.
The ongoing stability in employment and gross state product underlines the strength of the territory’s economic fundamentals. In the latest ABS data, state final demand increased by 0.8 per cent over the 2013 calendar year. This compares to an increase of 0.9 per cent in the national equivalent domestic final demand.
As at February 2014, the territory had the lowest unemployment rate in the nation, at 3.4 per cent, and the second highest participation rate, at 71.4 per cent. At the same time, the level of residential building in greenfield and infill locations and the solid job growth in the overall construction sector is evidence of the robust growth of our economy and the broad policy settings. It is worth noting that, year on year to January 2014, the number of residential building approvals in the ACT in original terms increased by 29.3 per cent. This pick-up in building approvals is an indicator of dwelling investment in the short to medium term.
However, there is no doubt that the ACT’s exposure to cuts in the public sector workforce and risks to both GST revenues and direct commonwealth funding require a policy response. It is not the intention of the government to wait until after the commonwealth budget and the mugging of our economy by the Liberal Party in order to act. The government has acted early, through the announcements of the Chief Minister, and we will continue to press ahead with the most important tax reform agenda in this territory’s history and the most ambitious one in Australia.
The government is maintaining a robust land release program throughout this period. The current program does not include any new englobo developments or joint
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