Legislative Assembly for the ACT: 2003 Week 6 Hansard (19 June) . . Page.. 2118 ..
That this bill be agreed to in principle.
The Assembly voted-
Ayes 7 Noes 8 Mr Berry Mr Quinlan Mrs Burke Mr Smyth Mr Corbell Mr Wood Mr Cornwell Mr Stefaniak Ms Gallagher Mrs Cross Ms Tucker Mr Hargreaves Ms Dundas Ms MacDonald Mr Pratt
Question so resolved in the negative.
Rates and Land Tax Amendment Bill 2003 (No 2)
Mr Quinlan, by leave, presented the bill and its explanatory statement.
Title read by acting clerk.
MR QUINLAN(Treasurer, Minister for Economic Development, Business and Tourism and Minister for Sport, Racing and Gaming) (11.53): I move:
That the bill be agreed to in principle.
With the defeat of the Rates and Land Tax Amendment Bill, it is necessary to amend the Rates and Land Tax Act prior to the commencement of the new financial year, otherwise rates will be levied based on historical and consequently irrelevant rating factors. This will have the unintended consequence of causing large increases in rates to all households in the ACT because average, unimproved land values have risen dramatically since 2001, when the last rating factor was calculated.
The bill is necessary to ensure that the territory is able to raise rates for the next financial year and the overall rates take will not exceed a gross CPI increase. In essence, the bill implements the rating system that was implemented previously, using the formula of a fixed charge plus an updated rating factor to be applied of the AUV of a property.
As with the previous system, the rating factors have been calculated to ensure that the overall rates revenue will not exceed CPI. Separate rating factors have been calculated for residential and commercial properties. The rural rating factor is set at half the residential rating factor and rural properties will not be subject to the fixed charge.
The fixed charge has been increased from $300 to $320, in line with the previous fixed charge increases of $20. No, it is not-it is keeping track with CPI. That was in the speech! We do not intend to increase it by $20 per annum, but we think the fixed charge ought to roughly keep pace with CPI, to maintain consistency in the rating process.