Page 4163 - Week 13 - Thursday, 14 December 2006

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Treasury not consult with the Community Inclusion Board, given its recent household debt project?

I strongly urge the government not to use its majority numbers to pass this bill today. While I acknowledge that the Treasurer tabled a draft bill about three weeks ago, there has been very little time for discussion. The only groups that had their voice heard in this short debate have been the large utility providers, especially the telecommunications ones. The Greens think it would be much more productive to take this bill away, consult with DHCS, the Community Inclusion Board and financial hardship-based organisations about progressive measures, and consult with TAMS and environmental organisations about utility taxes that could have a positive impact on our environment.

Our office communicated this position to the Chief Minister’s office on 7 December, only to be told that any time wasted was revenue lost. That is understandable but I wonder whether it has considered the cost that will come back to the government for having taken this backward step. It also underscores the desperate financial situation in which the government feels itself to be—one about which we are not supposed to know. If we could develop costings of the impact that this bill will have on green energy purchases or households being tipped over their debt threshold what would that be?

Even if the government does pass this bill today—and I suppose it will—it could admit that this is not the best measure for the long term. It could pass this bill today and commit to going away and developing a more appropriate revenue measure that takes a triple bottom line approach. An enlightened government would do that but, unfortunately, we have not seen much evidence of enlightened governance this week.

MR STANHOPE (Ginninderra—Chief Minister, Treasurer, Minister for Business and Economic Development, Minister for Indigenous Affairs and Minister for the Arts) (12.17), in reply: I thank members for their contributions to debate, such as they were. I also thank members of the scrutiny of bills committee for their cooperation in allowing the government to introduce the debated bill with relatively short notice.

The Utilities (Network Facilities Tax) Bill provides for the introduction of a new tax on owners of utility networks within the ACT. The bill defines who will be liable for tax, how the tax will be calculated and the requirement to register and submit annual returns. The bill also provides for the Commissioner for ACT Revenue to make an assessment of the liability in the event that a taxpayer does not submit a satisfactory return. Finally, the bill makes it an offence for utility owners not to register within specified times.

The bill provides for the action to commence on the day after its notification day. However, the tax takes effect from 1 January 2007. The tax will be payable within 60 days after 31 March in each year. The first tax return will be for the period 1 January to 30 June and the liability will reflect that period. That is, the tax payable will be half what it would be for a full year. The bill also amends the Taxation Administration Act to include the utilities network facilities tax as a tax law. This brings the full rights and obligations of ACT taxation legislation to support the utilities network facilities tax.


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