Page 1013 - Week 03 - Thursday, 21 March 2019
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The commissioner no longer has to consider reasonableness, a test that is used extensively throughout common law.
We have seen with objections to the increase in rates and land tax that the Treasurer can be very heavy-handed when it comes to the application of these laws. Despite the government’s assurance that the vacant land tax will be applied appropriately, we still see Canberrans getting slugged when they should not have been. We said back in May last year that the consequence of the changes would be significant, and this was dismissed by Labor and the Greens. Now, a year on, they are agreeing that there were unintended consequences that have been detrimental. Therefore, we have no confidence that any such discretion the government has in this bill will be used for the benefit of Canberrans.
The legislation also introduces a mechanism to allow the government to claim tax debt from a mortgagee or a credit provider, place a charge on a property and become the first creditor. When a property is sold, money from the sale will first go to the government’s coffers before creditors who have a secured and vested investment or interest in the property. This could give rise to situations we have seen in other jurisdictions where a creditor ends up in an inequitable position despite doing everything right in relation to their own assessments.
It demonstrates once again that the government only care about getting their cut, and any notions of fairness and equity are thrown out the window. The government only care about what money they can squeeze out of Canberrans. Those opposite do not care about the hardworking people of Canberra who are fighting to keep up with the ever-increasing cost of living in Canberra.
The threshold for these charges and debt recovery measures is set very low, at $2,000 or another amount set by the minister. We have heard during the numerous rates inquiries that individuals and businesses’ rates and land tax bills have been increased by thousands without warning. It is not unexpected that some people could very easily find themselves in arrears due to the dramatic escalation in taxes and charges.
If you are financially stretched by trying to cope with the effects of the Labor-Greens government’s targeted revenue-raising policies, it is not difficult to imagine that you may be in arrears for a year or two as you struggle to keep up with the payments and associated penalties. You should not have to be worried about losing your home or having a charge placed on it because of a $2,000 unfair liability. This is a devastating way for people to live.
Further to this, at a time of a potential housing downturn when banks are changing their lending ratios, when there are unpredictable valuations, rising rates and land taxes and a federal Labor Party proposing huge housing taxes, now is not the time to be tinkering with the hierarchy of creditors. Even if the government are determined to do this, they should at least do much better analysis than they have done. At the very least, a committee inquiry would be useful. I am very concerned about what impact this will have for banks lending to Canberrans and what risk assessments banks will have to do in order to lend for houses in the ACT.
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