Page 2769 - Week 08 - Thursday, 11 August 2016
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Members interjecting—
MADAM SPEAKER: Order! Mr Doszpot and Mr Hanson, come to order. A supplementary question, Ms Burch.
MS BURCH: Treasurer, can you explain the principles of the lease variation and the circumstances for a waiver.
MADAM SPEAKER: I think you will have to limit yourself in relation to clubs, because the question is about clubs, not about lease variation charges.
MR BARR: Thank you, Madam Speaker. The lease variation charge as it applies to clubs and, indeed, to other entities, seeks to capture for the community some of the windfall gain that arises from a variation to that lease that is granted by the government or by this place. It is an unearned windfall gain. Someone who leases the land and buys it for a certain price with a certain level of development rights and is then granted significantly more—the land is worth significantly more—the lease variation charge captures a portion of that uplift. That is the economic policy principle.
Mr Coe interjecting—
MADAM SPEAKER: Order, Mr Coe!
MR BARR: It is an unearned windfall gain. The charge is calculated—
Mr Coe interjecting—
MADAM SPEAKER: Order, Mr Coe!
MR BARR: The charge is calculated by the difference in values before the variation and after. If there is no difference in values, there is no lease variation charge applicable. There is no lease variation charge applicable if there is no increase in value.
Mr Coe interjecting—
MADAM SPEAKER: Mr Coe, I warn you.
MR BARR: It is a very simple proposition the shadow treasurer struggles to understand.
Mr Coe interjecting—
MADAM SPEAKER: Mr Coe, you are on a warning.
MR BARR: It is a very simple proposition, Madam Speaker. If there is no uplift in value, the lease variation charge is a percentage of zero. Seventy-five per cent of zero is zero. If there is a value uplift, the lease variation charge applies. As those opposite know—
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