Page 750 - Week 03 - Thursday, 2 April 2020
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
Debate (on motion by Mr Coe) adjourned to a later hour.
Rates Amendment Bill 2020
Debate resumed from 13 February 2020, on motion by Mr Barr:
That this bill be agreed to in principle.
MR COE (Yerrabi—Leader of the Opposition) (10.40): The opposition will be supporting this bill. The Rates Amendment Bill makes minor and consequential amendments, with substantive changes relating to average unimproved value, or AUV. The AUV of a property is used in determining rates, the fire and emergency services levy, the city and market improvement levy, land tax and the foreign ownership surcharge.
In the 2019-20 budget the ACT government foreshadowed lengthening the period used to calculate AUV for commercial properties. This bill incrementally increases the current three-year period to five years and will cover both commercial and residential properties. The Treasurer has noted that these amendments will soften taxation increases by reducing the impact of a significant change in AUV during a single year.
The public accounts committee heard from many property owners whose rates have significantly increased as a result of their unimproved value. This increase changed the basis for their rates calculation and, in addition to the ratings factor, it forced prices up incredibly. When you have a situation where the unimproved value increases and the ratings factor increases, you have exponential growth in your rates.
While this bill will not stop increases to rates and taxes, we think that for the majority of cases it will result in the AUV being less than it might have otherwise been in the event of it being a three-year rolling average. However, it is worth noting that, in the event that an unimproved value goes down, this will mean the landowner will get a reduced benefit as a result of valuations going down. So if we get a property downturn or a stabilisation of property prices in the ACT it will be interesting to see what impacts this change has.
It is our belief that stronger and urgent action is required on rates, taxes, fees and charges in the territory. At this time of the COVID crisis we need to do all we can to support families and businesses right across the territory. We need to ease the cost of living burden that so many Canberra households are feeling right now. We will continue to push for rates relief and many other measures to support Canberrans during these tough times. As I said at the beginning, the opposition will support this legislation.
MS LE COUTEUR (Murrumbidgee) (10.43): The Greens will support this bill. Members will be aware that rates in the ACT are calculated on the basis of the average unimproved land value. The average means that while treasury works out the estimated unimproved value of your land each year, you actually pay the rates on the
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video