Page 5975 - Week 14 - Thursday, 8 December 2011

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growth in population, increase in prices across the Australian economy and the increase in service needs within the ACT community.

Taxation in the ACT as a proportion of household disposable income and of the economy is in fact well below the national average. ABS data shows that the average employed person in the ACT paid around $5,637 in state and local taxes in the 2009-10 financial year. This was in fact $300 less on average when compared with other states and territories. This understanding is in fact further supported by the measure of taxation revenue as a proportion of the economy as measured by gross state product, which has in fact fallen from 14.4 per cent in 2001, when the government came to office, to 13.7 per cent in 2010. This is around 3.5 per cent lower than the national average.

In relation to rates revenue, rates revenue has increased over the period, as you would expect but it has done so in line with the wage price index. When you compare the rates base here with other parts of New South Wales and surrounds, we have seen rate increases for 2010-11 across the border of 10.2 per cent in the Snowy River Shire Council, in Bega Valley shire 6.3 per cent and for Queanbeyan council 8.4 per cent. In fact, here in the ACT, although we all I think understand that rates will go up each year, they have in fact been going up more slowly in the ACT than elsewhere.

In relation to property rates and charges, the ABS has an index for this. The number in Canberra for the September quarter 2011 was 197.6, which is below the national average of 204.6. So Canberra, in terms of that ABS property rates and charges index, remains below Hobart, Perth, Adelaide and Melbourne.

In relation to housing affordability, the latest Real Estate Institute of Australia data shows that the ACT continues to be the most affordable jurisdiction in Australia, a title we have held for the last five years. The proportion of family income required to meet a home loan payment in the ACT is 18.8 per cent. This is significantly lower than the national average of 34.6 per cent. Whilst in relation to rents, the proportion of family income required to meet rent payments in the ACT is 16.5 per cent, this is significantly lower than the national average of 25 per cent.

Undoubtedly, our above average incomes are a factor in that REIA data. The government recognises that for those who are not on above average incomes it is important to provide significant assistance. That is why the government, through its affordable housing action plan, has the most comprehensive and innovative action plan of any government in Australia. The plan addresses the issue of housing affordability right across the spectrum, for homebuyers and for renters, for those in community and social housing, and for those in public housing.

The plan includes a range of initiatives targeted at stabilising house and land prices, particularly focused on increasing the supply of affordable housing. I am sure members are aware of the current requirement for 20 per cent of dwellings in all new estates to be at or below the affordable price of $337,000. In addition, the government has put in place homebuyer concession schemes, deferral of stamp duty, pensioner duty and land rent schemes to assist those most in need, and $70 million has been


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