Page 1759 - Week 05 - Wednesday, 5 May 2010
MR SPEAKER: Order, members! Mr Smyth is asking his question.
MR SMYTH: Thank you, Mr Speaker. Treasurer, what impact will the massive tax hike have on the rental market in the ACT?
MS GALLAGHER: The opposition fail to understand the issue here. They fail to understand that the community have not been receiving their share of the windfall gains of granting extra development rights. We are applying the law as it is set out. The community share is a part of that windfall gain. We do not expect, nor should they, to pass those costs on.
Mr Smyth: On a point of order, Mr Speaker, the question is about the impact on the rental market.
MS GALLAGHER: I have answered the question.
Mr Smyth: She has not even mentioned the words “rental market”.
MR SPEAKER: The Treasurer has sat down, I am afraid, Mr Smyth. Any further questions without notice?
Budget—goods and services tax
MR SMYTH: My question is to the Treasurer. Treasurer, in the budget that you brought down yesterday, you show that revenue from the goods and services tax will fall in the 2010-11 budget by $25.4 million, from $904 million to $879 million. Treasurer, when the report from the Commonwealth Grants Commission was released in February this year, you were quoted as saying that the ACT would “lose more than $80 million” in GST funding in 2010-11. Treasurer, why is there a difference of $55 million in the estimate of the loss of GST revenue?
MS GALLAGHER: The pool has grown, Mr Smyth, in short. I have said it a number of times at forums where you have been—
Mr Barr: Such a moron.
MS GALLAGHER: I accept that you do not listen to what I say, but the expectation—and I think it is in the budget papers, if you read them—is based on information. Our best modelling when we were putting this budget together was that the GST pool has grown nationally and that we will benefit from that, and it has partially offset the $85 million loss. But you will see going forward that the losses continue to grow.
Mrs Dunne: On a point of order, Mr Speaker, could I ask you to ask Mr Barr to withdraw the word “moron”. He called Mr Smyth a moron.
MR SPEAKER: I am afraid I did not hear it, Mrs Dunne, I have to say.