Page 2287 - Week 08 - Tuesday, 28 August 2007
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Indeed, the June consolidated financial report showed that there had been an additional $45.3 million in taxation revenue in 2006-07 above and beyond the estimate made in the most recent 2007-08 budget, released only months ago. (Second speaking period taken.) The government’s expenses were also in excess of its previous estimates, although from memory—I do not want to be held to this—I think it was only about $8 million.
I had previously highlighted the fact that the ACT Treasury has persistently underestimated revenue from taxes and charges. I find this somewhat intriguing. The consolidated financial report bears out this point. In estimates hearings on 15 June 2007 the much-maligned Mr Tony Hedley, president of the ACT division of the property council, also echoed this concern.
The Chief Minister has become quite sensitive to criticisms over the issues of forecasting. He has been dismissive of the property council’s predictions that there would be greater revenues and he has said that they have nil credibility. Clearly they have expressed a concern that has, to some extent, been vindicated by the June financials released recently.
It is quite disappointing. The government, not content to take their money through a crippling tax regime—as the Canberra Times reports; this may be refuted—is now considering banning political donations from property developers and builders. That is a very noble thing. I hope that that view—if it is accurately reported—will be extended to poker machines. This is an amazing development for anyone in the ACT who is concerned about free speech. The government has now established this as their modus operandi: take from them, attack them and then deny them the right to participate in the political process.
We do not need to go to the property council to see the problems in the government’s budget. The budget papers also bear out the fact that Treasury is underestimating revenue. As I indicated, the 2006-07 midyear budget review altered the estimates on revenue to provide for an additional $14.3 million in unexpected taxation revenue. The 2007-08 budget again altered the estimates of revenue, including an additional $26 million, which is now expected from the GST. Yet Mr Stanhope still complains that claims of GST windfalls are incorrect and scoffs at these observations as claims that there are rivers of gold.
The 2007-08 budget also reported an additional $18.5 million now expected from taxation revenue—excluding revenue from the LDA—an additional $26 million from LDA tax and tax equivalents; an additional $46.5 million from LDA dividends. That is $115 million in parameter adjustments pertaining to taxation dividends. Since the release of the budget, only a couple of months ago the June consolidated financial report has also adjusted estimates of taxation for 2006-07 by increasing these estimates, as I said earlier, by $45.3 million.
The people of Canberra are rightly concerned. I hear a high level of concern over the level of tax being imposed on them. Whilst the Chief Minister and Treasurer may argue that these are wonderful turnarounds and results, what would impress the people
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