Page 4311 - Week 12 - Thursday, 24 October 2019
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the property developer being liable for one quarter of land tax and then passing on this cost to the purchaser.
The government has acknowledged this is an unintended consequence of the law and has provided more than 400 waivers and act of grace payments totalling around $270,000 to property buyers affected by the current situation. This bill extends the unfit for occupation exemption by an additional quarter after a certificate of occupancy is issued.
The extra time provided should address the vast majority of cases. This is evident from the waivers and refunds already provided by the government and through consultation with the Master Builders Association and the planning directorate on the timing of handover arrangements. Only rare and exceptional cases are expected to fall outside this period and these will be managed on a case-by-case basis.
The bill also makes minor and more technical amendments to taxation legislation to improve, clarify and simplify tax law and its administration. The ability to grant a land tax exemption for compassionate cases will be extended from one year up to two years. The bill also makes other land tax changes to: better facilitate operational requirements for the notification of a change in circumstances; clarify the meaning of the common terms of “rent” and “dwelling”; and clarify the operation of the exemption for owners moving into a principal place of residence.
The bill provides a power for the minister to make arrangements for deferral of duty via a statutory instrument to enhance the ability for timely implementation of government decisions for duty deferrals. Amendments will also allow for the internal review by the Commissioner for ACT Revenue of decisions to not remit interest for unpaid land rent, consistent with other taxation acts. This will provide an avenue for tax payers to have their objections to the imposition of land rent interest considered.
The bill provides greater flexibility for collecting lesser amounts of money in garnishee action to better respond to differing taxpayer circumstances. Debt recovery powers related to mortgagees introduced with the Revenue Legislation Amendment Bill 2019 will be extended to land rent debts.
The bill will further clarify and simplify tax administration with a range of technical amendments such as addressing consequential matters arising from the homebuyer concession scheme and rates deferral changes at 1 July 2019 and removing a requirement to notify payroll tax grouping exclusion by disallowable instrument.
Through this bill we are meeting our public commitments to address land tax operational concerns and continuing to ensure that the territory’s tax system is fit for purpose. The Revenue Legislation Amendment Bill 2019 (No 2) supports the functioning of government and provision of services to the benefit of all Canberrans. I commend the bill to the Assembly.
Debate (on motion by Mr Coe) adjourned to the next sitting.
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