Page 1899 - Week 07 - Tuesday, 2 June 2015

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Together, the effects of the Commonwealth’s past two budgets and the Asbestos Eradication Scheme have put significant pressure on the Territory’s finances.

In the face of the Commonwealth’s attacks, the Territory Government faced a choice—we could pass those costs on to the community in the form of cuts to support and services.

Or we could stand up for our community and use our strong budget position to protect Canberrans from the worst of the Commonwealth’s savagery.

The Government’s immediate priority is to support the Territory economy, and this budget does just that.

Supporting the economy and our people, and building productive infrastructure, creates employment, improves services and generates long-lasting benefits for our citizens.

We will continue to leverage our low net debt and strong credit rating to support our community in a time of need—both in economic terms and in reviving consumer and business confidence.

The General Government Sector Headline Net Operating Balance is forecast to be in deficit for the next two years before returning to balance in the 2017 to 2019 period.

This fiscally responsible approach reflects a strategy that partially offsets spending through savings and revenue initiatives over the next four years.

Taxation reform

This budget continues the reforms to make taxes fairer, simpler and more efficient that this Government started in 2012.

We are entering our fourth year of the reform process, and the benefits are clear.

Stamp duty is significantly lower than in 2011-12. For example, the buyer of a Canberra home valued at $500,000 is now saving $5,900 in stamp duty compared to before tax reform.

Buyers in the ACT now pay less stamp duty than in Victoria. And stamp duty is lower than in NSW for sales of properties valued up to $850,000.

I am also pleased to advise that 2015-16 will be the last year that insurance duties will be applied in the ACT, making us the first jurisdiction to fully abolish this inefficient tax—saving households and businesses hundreds, if not thousands, of dollars each year.

With the Commonwealth Government looking at nation-wide tax reform, the ACT can proudly say we are already doing it.


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