Page 2589 - Week 09 - Wednesday, 7 August 2013
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
• changes to the First Home Owner Grant …
There are certain other aspects there in regard to tax reform. Dr Bourke and I noted the work of the ACT government and in our recommendations recommended that the ACT Government be commended for its transformational tax reforms. We also noted that the changes to the tax system were welcomed by the community. That was reflected in evidence given on 17 June, and we have reflected that in our recommendations as well. So not only have we referred to the inquiry but we have provided the evidence that gives us the imprimatur to give that recommendation.
On the AAA credit rating, in our report we noted the work that we did in the committee, again on 17 June, looking at the ACT’s AAA credit rating and the significance of high credit ratings for the health of the economy. We looked at the annual process in which Standard & Poor’s reviews the ACT’s credit rating, the implications of the credit rating for the ACT’s ability to borrow funds and the cost of money, the level of debt carried by the ACT compared with other jurisdictions, and the borrowings by ACT entities.
Dr Bourke and I recommended that the ACT be commended for maintaining the ACT AAA credit rating. We noted also that there are rolling reviews of expenditure in cabinet’s expenditure review committee, and we thought that was prudent.
These particular lines were reinforced by the independent reviewer from CIE. Mr Rattenbury has already referred to the CIE report, but I would like to talk to that as well. The summary of the report states:
The 2013-14 Budget seeks to reprioritise spending and smoothly bring the budget back into surplus in 2015-16 …
Moderate but robust expenditure has been committed to stimulate the ACT economy in light of softening in economic fundamentals …
Revenue expectations are strong.
Revenue is projected to increase by approximately 5.9 per cent in 2013-14 and an even stronger 6.7 per cent in 2014-15. In absolute terms, revenue is estimated to be $4 237.3 million in 2013-14 compared with $3 999.9 million in 2012-13.
The projected increases are driven by higher Commonwealth Government funding and own-source taxation revenue which together account for 73 per cent of revenue.
The CIE report continues:
Is the return to surplus achievable and reasonable?
The 2013-14 Budget indicates that a surplus will be achieved in 2015-16 …
Tax reform delivers a positive change in revenue.
The taxation reform package delivers an overall increase in revenue of 4.8 per cent in 2013-14 and 7.1 per cent in 2014-15.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video