Legislative Assembly for the ACT: 2018 Week 12 Hansard (Wednesday, 31 October 2018) . . Page.. 4585 ..
information about commercial rates, how they are calculated, and in the broadest terms what analysis the government has done in working out what is an appropriate rate for commercial rates. But we are supporting Mr Barr’s amendment because we think it is more likely to actually produce the information that Mr Coe wants.
MR COE (Yerrabi—Leader of the Opposition) (4.43): I will wrap up. I appreciate Ms Le Couteur’s comments that she knows what I really want, as opposed to my saying what I actually want. But I know that the Greens’ world view is that they know best and that I should not challenge them because that is just how they roll. And they are used to getting their way in this place; so I think there is clearly going to be a majority of support for this amendment. The only thing I would ask from the Chief Minister is that when you provide this in annual reports hearings, you do so in writing preferably, rather than just a commitment to give answers verbally. This is so we have actually got something that constituents can rely upon.
Obviously, I disagree with much of what the Chief Minister has said. It is all very well to talk about the tax mix in its entirety. That might well be relevant for a treasurer or for a government, but for a small business whose main tax at a state or territory level is rates, that is what really matters to them.
Many businesses, even in New South Wales where you have got a much lower threshold, are still not paying payroll tax. They are not paying much by insurance duties. They may not be paying any money in stamp duty. Rates are really their main outgoing when it comes to government taxes, fees and charges. So to try to group everything for some typical business that has $10 million worth of payroll, owns their building and seems to buy a lot of insurance, I do not think that this is really applicable to the small businesses that we are talking about.
With regard to Phillip in particular, some of these revaluations are just extraordinary: revaluations, one year $150,000; the next year, $450,000. This is just massive. These are massive changes in the amount of money that these businesses are paying. In one year their rates go up from $159,000 to $450,000—in one year! That is phenomenal to have $300,000 of additional outgoings in one year. It is the same for so many others.
Mr Barr: The value of their property has gone up.
MR COE: Unfortunately, what the Chief Minister is saying is that the value of the property has gone up. I hate to break it to you, but when your outgoings go from $150,000 to $450,000 the value of your property has just gone down. What you can actually sell that for, the yield you are getting, has just gone down significantly. The yield has gone down significantly. If you reckon that a $300,000 hit to your bottom line is not having an impact on the value of that property, then you are not fit to sit where you are. That has a massive impact. It is all very well for the Chief Minister to try to talk about—
MADAM DEPUTY SPEAKER: Order! Order, Mr Barr! Mr Wall!