Page 2877 - Week 08 - Thursday, 11 August 2016
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(4) Did the Treasury consider the option of improving the productivity of government spending versus improved tax efficiency and did the Treasury consider and quantify the possibility that tax reform may encourage excessive spending, increasing the tax burden and offsetting any efficiency gains from a tax mix switch
Mr Barr: The answer to the member’s question is as follows:
(1)
a) The Government’s tax reforms are revenue neutral, with revenue raised from increases in general rates used to fund the abolition of conveyance duty and insurance duty. As a result, tax reform will have a negligible impact on the Headline Net Operating Balance.
As noted in the 2016-17 Budget, the government remains on track to return the budget to balance from 2017-18, with surpluses forecast from 2018-19 onwards. This is forecast to be achieved as the tax reform program continues.
b) The tax policy followed by an individual State or Territory does not directly influence its GST relativity.
The Commonwealth Grants Commission (CGC) makes it assessments of States’ needs and capacities based on drivers which are, as far as possible, free of State policy influence.
The CGC’s approach to assessment of revenue raising capacity is to take into account what all States do, and average the outcomes, regardless of whether all States are imposing a particular tax, phasing out a tax or introducing a new tax.
(2) Treasury undertook a range of modelling as part of the ACT Taxation Review. The 5 year reform plan A fairer, simpler and more efficient taxation system published in June 2012 includes distributional analysis of the tax reform impacts, as well as the impact on households. It also includes estimates of the efficiency gains from replacing conveyance and insurance duties with general rates.
(3) The phased implementation of the tax reform program, including the phase in over a 20 year period and the concessions available, will ensure the reforms are fair.
(4) As noted in question (1), the tax reform program is revenue neutral and hence will not encourage additional spending.
Land—sales
(Question No 791)
Mr Coe asked the Treasurer, upon notice, on 11 August 2016:
(1) In relation to property in the ACT, for (a) commercial and (b) residential properties, what is the number of transactions and value of stamp duty due to be collected for the 2016-17 Budget, being 2016-17 to 2019-20, for sales in the range of (i) $0 to $100,000, (ii) $100,000 to $200,000, (iii) $200,000 to $300,000, (iv) $300,000 to $400,000, (v) $400,000 to $500,000, (vi) $500,000 to $600,000, (vii) $600,000 to $700,000, (viii) $700,000 to $800,000 (ix) $800,000 to $900,000, (x) $900,000 to
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