Legislative Assembly for the ACT: 2010 Week 14 Hansard (9 December) . . Page.. 6123..
Professor Dungey was specifically engaged to build an econometric model to determine the impact of codification on various sectors in the territory. Her paper includes an economic model. However, after analysis of the available data from various sources, she found that statistically significant results could not be determined.
Professor Piggott has undertaken a conceptual economic analysis. He has noted that the increase in change of use charge is related to rectification but considers that with appropriate transition arrangements the move to codification is unlikely to impact greatly on the various sectors within the ACT economy, particularly the residential property market.
Both Professor Nicholls and Professor Piggott have noted that the increase in charges almost entirely relates to rectification rather than codification from a rectified system. This is an important point and one that I have been stressing for some time.
The impact of rectification is on the residential sector, and the commercial sector is not affected.
While Professor Nicholls has recommended a three-year period to introduce codification, Professor Piggott has recommended phasing in codification over time while remaining flexible and responsive to changes in the property market. He is suggesting different phasing arrangements for commercial and residential sectors and between low and high-unit residential developments. He is more sympathetic towards the part of the sector delivering developments of fewer than 20 units.
Overall, Professor Piggott is supportive of the reform proposed by Professor Nicholls, acknowledging that the move to codification will improve operation of the change of use charge and that it accords with "common sense tax administration".
The government is very mindful that any microeconomic reform needs transition arrangements and the government will consider the appropriate transition arrangements. It should also be recognised that the government retains the ability to provide remission on the change of use charge to achieve specific policy objectives and this would not change.
The government remains committed to reforming the change of use charge system in the territory. The consultation to date has been quite comprehensive and I envisage further consultation on the draft legislation before its introduction in the Assembly for a planned commencement on 1 July 2011, although, if there is agreement from the parties about the way forward, we will look at introducing it earlier.
Mr Corbell presented the following paper:
Public Accounts—Standing Committee—Report 9—Review of Auditor-General's Report No 4 of 2009: Delivery of Ambulance Services to the ACT Community—Government response.