Page 331 - Week 02 - Tuesday, 9 February 2021
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Government financing costs have never been lower, so now is the time to invest in the social and economic infrastructure that will prepare our city for the future.
Never has the role of government been clearer: to respond quickly, to invest, to support our most vulnerable, and to protect and shape our local economy through the recovery period.
Economic and fiscal projections for the ACT
Madam Speaker, the ACT has, throughout this, maintained the lowest unemployment rate and one of the highest rates of economic growth in the nation.
In August of last year we were the first Australian jurisdiction to provide our estimated fiscal position over the full forward estimates.
Today I can update these figures and confirm that the ACT’s fiscal position has improved by nearly $600 million over the coming four years, including a $300 million improvement in this fiscal year.
We also forecast economic growth at an average of 2.7 per cent a year over the next four years, reflecting our jurisdiction’s strong economic position.
Properly funding essential government services is only possible through a stable tax revenue stream, which is why in 2012 we started a nation-leading tax reform program.
A stable tax system reduces potential revenue shocks and the flow-on risk to services. Our tax reform program is now well advanced.
We have abolished insurance duty, cut stamp duty to zero for around 80 per cent of commercial property transactions, and raised the payroll tax threshold so that around 90 per cent of Canberra’s businesses no longer pay payroll tax.
We will continue to cut stamp duty and support prospective owner-occupiers to buy an affordable home.
Low population growth, due to low estimates for migration flows into Australia over the next four years, will place constraints on national and local economic growth.
However, the latest data shows that the ACT’s strong response to the pandemic, principally driven by our success in controlling the virus, and the delivery of significant fiscal support where needed, has resulted in a strong recovery in the territory’s labour market, with employment growth even higher than expected.
Employment growth is now forecast to continue across the budget and forward estimates at an average of 1.7 per cent.
Beyond these economic metrics, it is measures such as social equality, community safety, emissions reductions and the ability to participate in community life that go to the overall quality of life for Canberrans.
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