Page 784 - Week 03 - Wednesday, 9 March 2005
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We have made good progress in relation to the taxes and charges that have been repealed as a result of the introduction of GST and arrangements we entered into with the commonwealth. We have removed the financial institutions levy. We have actually removed some stamp duties, particularly in relation to marketable securities, and we are on the verge of removing the debits tax. We continue to review payroll duty. We continue to review stamp duty. Indeed, just in the last year we have changed significantly stamp duty in relation to first home buyers. We have lifted the bottom limit in relation to stamp duty for first home buyers to around about $285,000 to $286,000 with concessions applying, dependent upon income, up to $380,000. That we have done that is a very significant change to the stamp duty tax regime in the ACT. Now, as a first home buyer, you do not actually need to pay stamp duty. So these are significant changes that we have made as part of the deal or the understanding between the commonwealth and the ACT in relation to the GST.
It needs to be said in the context of this debate that I find it interesting that, in an environment where Peter Costello and the federal Liberals have managed the national economy to the point where we actually have a $16 billion trade deficit, the Reserve Bank has now approved an increase in interest rates.
Opposition members interjecting—
MR SPEAKER: Order!
MR STANHOPE: Peter Costello is the new interest rate king. Interest rates have gone up.
Opposition members interjecting—
MR SPEAKER: Order!
MR STANHOPE: I find it interesting, the mirth of Mr Smyth and the Liberal Party at the prospect that all householders with a mortgage around the ACT are now paying $40 or $50 a month more. That is no laughing matter.
Opposition members interjecting—
MR STANHOPE: Peter Costello has just delivered a $50 a month mortgage increase to Canberrans and to Australians. Having promised not to, he has done it. It is interesting, in the context of increased interest rates, that there is a determined attempt now to dampen consumption. What happens when you dampen consumption? The dampening in consumption will come because 50 bucks a month has been taken out of the pockets of all Australians. Consumption will reduce. If consumption reduces, GST will reduce. GST receipts by the commonwealth will fall, as will payments to the states. I guarantee that, if interest rates rise again, as they will under this Treasurer and under this federal government, and we find that it is not 50 bucks a month that the people of Australia are asked to go without in terms of their capacity to meet their household bills but, say, $100 a month, within a few years the real possibility exists of GST payments to the states being less, in the longer term average, than payments made to the states pre GST.
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