Page 2714 - Week 07 - Wednesday, 6 June 2012
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average increase in residential property rates will be $123. What will be the average increase in rates for the years 2013-14, 2014-15 and 2015-16 as insurance duties and stamp duties are phased out?
MR BARR: We will continue our reform program and make adjustments to the rates base as appropriate. The indexation of rates will continue at the wage-price index. The variances across each suburb depend on the rolling three-year average of unimproved land values. Of course, as each year progresses, the furthest year back drops off that and the new financial year comes into it. So there are always changes from year to year in terms of the total calculations between different suburbs, depending on changes in the average unimproved value of those suburbs.
In the context of the changes from year to year in the transition from the inefficient taxes to the more efficient taxes, I would draw the member’s attention to the tables within the budget paper that indicate the level of revenue transition from year to year. So in the context of insurance duties, it is around a $10 million a year phase-out, and that transition moves across to the rates base. It will depend, of course, on the split between residential and commercial rates. If the member would like more detail in relation to those elements, he should look at the tax pack.
MR SPEAKER: Mr Smyth, a supplementary.
MR SMYTH: Treasurer, the $123 is, of course, an average increase. What is the maximum and minimum that rates will change in the 2012-13 year under the new rates formula and revenue replacement?
MR BARR: In relation to an individual property or a suburb?
Mr Smyth: You want me to answer your question? I would like the answer to both.
Members interjecting—
MR SPEAKER: If we can have some flexibility for Mr Smyth to clarify the question, thank you.
Mr Smyth: I am happy to have both; the individual and the suburb.
MR BARR: In relation to that, the range, as I understand it, is savings in the order of $200 or $300 a year for those lower value properties and at the high end it can be up to about $850 a year. I will take some further advice on the extent of that. That will be an on-average change across the different quintiles. The detail is, of course, within the tax package by AUV quintile.
In relation to the individual properties, that may in fact require me to identify the tax outcomes for an individual household, and there are privacy considerations contained within the taxation administration legislation that would prevent me from doing so.
MR COE: Supplementary, Mr Speaker.
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