Page 3123 - Week 08 - Thursday, 16 August 2018
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There are only a handful of new revenue measures in the 2018-19 budget because the government has worked hard to fit our new recurrent and infrastructure investments within the existing revenue envelope. We understand that some Canberra households are facing cost-of-living pressures, and we will not raise one dollar more in revenue than is necessary to deliver the high quality services and infrastructure that this community expects and deserves.
One revenue initiative worth highlighting is the introduction of a point of consumption gaming tax. At the moment, betting taxes are levied at the point of supply, such as where a betting operator is located, but shifts in technology and in consumer gambling tastes have led to growth in the market for online betting. Suppliers who offer online services to customers in other jurisdictions are not captured by traditional point of supply legislation. This means that online gambling suppliers can base themselves in a low or no tax jurisdiction, and so potentially avoid paying tax on a large number of betting transactions. Jurisdictions are then unable to use this tax revenue to support gambling harm reduction where it actually occurs and other community priorities.
In moving to implement a point of consumption tax, the ACT is acting in parallel with other Australian states and territories. From January 2019, all Australian jurisdictions except the Northern Territory and Tasmania will have implemented a point of consumption gambling tax, with states and territories agreeing to a harmonised base and collection framework. This is a very good reform and an important integrity measure to ensure that our tax regime keeps up as technology changes how products and services are delivered.
The treasury portfolio also has responsibility for administering two important areas of existing government policy: the concessions program and tax reform. In 2018-19 the government will deliver an estimated $75.6 million in direct assistance for Canberrans, including concessions on rates for over 15,000 households, and will help with utilities bills for 32,200 households. We understand these concessions programs are crucial for ensuring that low-income and vulnerable Canberrans do not fall behind. We will continue to work to ensure that those who need it get the most support and the right support from government.
Of course, treasury will continue to deliver the government’s tax reform agenda, which is making our revenue system simpler, fairer and more sustainable. We have cut stamp duty rates in every budget we have delivered since 2012 and we will continue to do so in every year across the forward estimates. By 2020-22 the buyer of a half-million-dollar home will be paying half the amount of stamp duty they would have been when we started this reform, a saving of $10½ thousand.
We are also continuing to reform commercial conveyance duty. Since 1 July this year there is no conveyance duty payable for commercial properties worth under $1.5 million. This means that around 70 per cent of commercial property purchases no longer involve stamp duty. This is, of course, at the small and medium size end of the commercial property market, but it is 70 per cent of the transactions. This is a significant boost for small businesses and for investment in the ACT.
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