Page 1150 - Week 04 - Wednesday, 7 May 2014
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growth and the provision of services to the community. It is why we are managing our budget prudently while we are delivering a stimulus policy aimed at providing targeted assistance, particularly to the property and construction sector through the next few years.
These important policies will put the territory in the best possible position to withstand the mugging of our economy by these guys and their Liberal colleagues on the hill and the significant cuts that are coming our way under the federal Liberal government. That goes to reinforce the basic point that every Canberran knows deep down in their guts that this city does better under Labor governments. What we are about to experience from the Liberals is havoc on our economy. That is the challenge we face: to respond to the economic downturn that will be brought upon this city by the Liberal Party.
Fortunately, we have begun a program of significant economic reform in the territory. In the 2012-13 budget we began a long-term plan to make the territory’s taxation system fairer, simpler and more efficient. While all governments around the country and everyone who has looked at the Australian taxation system for the last three decades have recognised the importance of taxation reform—that is why we are having another white paper at the national level—the ACT is the only jurisdiction to have taken significant steps to implement meaningful tax reform. These reforms put our revenues on a more sustainable footing for the future. They continue to see the abolition of the most inefficient and economy-distorting taxes that state and territory governments levy.
The abolition of tax on insurance, the phasing out of stamp duty taxes and the cuts to payroll tax have all been targeted at improving the economic efficiency of our economy and boosting our economy, allowing resources to flow to their most productive use. Our reforms picked up pace in the last budget, including slashing the top level of stamp duty to a flat rate of 5.5 per cent for all properties valued over $1.65 million. Every single property in the Australian Capital Territory has received a stamp duty cut and will continue to receive stamp duty cuts as we abolish these inefficient and unfair taxes that every credible economist recognises need to be abolished.
I can guarantee you now that a recommendation that emerges from the next and any subsequent review of taxation in this country will be that these are the worst taxes levied by governments across Australia and that they need to be abolished. This government is getting on with that task. By 1 July 2016 we will have abolished all taxation on insurance in the territory. That will be a fantastic achievement and an important signal about the value of tax reform.
It is important also in reforming taxation that the government continues to provide strong leadership on budget management. During the boom times in the last decade the government delivered a sustained period of surpluses. We put money aside for more difficult times, and these times are upon us now. While the government will continue to maintain a prudent approach to the budget, we need to have flexibility in responding to the negative decisions for Canberra that will be made by the Liberal Party. While remaining committed to returning the budget to balance in the longer
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